All categories

3 years ago

Q 2.2: Accounts that are increased with a debit include A : equity. B : assets. C : revenue. D : liability.

Business

1 answer:

Gennadij [26K]3 years ago

6 0

Answer:

B : assets

Explanation:

As we know that

The debit columns report assets and expenditures side while revenues shareholder equity and the liabilities side are reported in the credit column.

Since we know that asset and the expenses account has a debit balance that means if they are increased so it would be recorded in the debit side and if it decreases so it would be recorded in the credit side that reflects the direct relationship.

You might be interested in

Absolute Company has a manufacturing facility in Brooklyn that manufactures robotic equipment for the auto industry. For Year 1

madam [21]

Answer:

Direct material price variance= $400 favorable

Explanation:

Giving the following information:

Actual quantity purchased 200 units

Actual price paid $8 per unit

Standard price $10 per unit

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (10 - 8)*200

Direct material price variance= $400 favorable

7 0

4 years ago

ROI, Residual Income, and EVA with Different Bases Envision Company has a target return on capital of 12 percent. The following

lara [203]

Answer:

a. ROI = income / Assets

Book Value Current Value

Software Division 0.175 0.13

Consulting Division 0.164 0.182

Venture Capital Division 0.093 0.088

Workings:

i. Book value

Software Division = 12,250/70,000=0.175

Consulting Division = 16,400/100,000=0.164

Venture Capital Division = 56,730/610,000 =0.093

ii. Current value

Software Division = 11,700/90,000=0.13

Consulting Division = 20,020/110,000=0.182

Venture Capital Division= 51,920/ 590,000=0.088

b. Residual income = Income - {Asset x Return on capital 12% }

Book Value Current Value

Software Division 3850 900

Consulting Division 4400 6820

Venture Capital Division -16470 -18880

Workings:

i. Book value

Software Division = 12,250-(70,000*12%)=3850

Consulting Division = 16,400-(100,000*12%)=4400

Venture Capital Division = 56,730-(610,000*12%) =-16470

ii. Current value

Software Division = 11,700-(90,000*12%)=900

Consulting Division = 20,020-(110,000*12%)=6820

Venture Capital Division= 51,920-(590,000*12%)=-18880

c. Economic Value Added ( EVA ) = Net Income After Tax - ( Amount of Capital x Weighted Average Cost of Capital [WACC] )

C. Software Division

(Value Base)

Book Current

Sales 100,000 100,000

Income 12,250 11,700

Assets 70,000 90,000

Liabilities 10,000 10,000

Capital invested 60,000 80,000

(Asset - Liabilities)

Tax on Income(30%) 3675 3510

Income after Tax 8,575 8,190

(Income - Tax on

income) (A)

Capital invested 6,000 8,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,575 190

Consulting Division

(Value Base)

Book Current

Sales 200,000 200,000

Income 16,400 20,020

Assets 100,000 110,000

Liabilities 14,000 14,000

Capital invested 86,000 96,000

(Asset - Liabilities)

Tax on Income(30%) 4920 6006

Income after Tax 11,480 14,014

(Income - Tax on

income) (A)

Capital invested 8,600 9,600

* WACC - 10% ) (B)

EVA (C)=(A)-(B) 2,880 4,414

Venture Capital Division

(Value Base)

Book Current

Sales 800,000 800,000

Income 56,730 51,920

Assets 610,000 590,000

Liabilities 40,000 40,000

Capital invested 570,000 550,000

(Asset - Liabilities)

Tax on Income(30%) 17019 15576

Income after Tax 39,711 36,344

(Income - Tax on

income) (A)

Capital invested 57,000 55,000

* WACC - 10% ) (B)

EVA (C)=(A)-(B) -17,289 -18,656

8 0

3 years ago

The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 64,000 Annual cost savings

Ratling [72]

Answer:

$9,201.6

Explanation:

Calculation for The net present value of the proposed investment is closest to:

Using this formula

Net Present value = (Annual cost saving * PVAF) + (Salvage value * PVIF) - Cost of investment

Let plug in the formula

PVAF (10%,5 years) = 3.7908

PVIF (10%, 5 years) = 0.6209

Net Present value = ($18,000 * 3.7908) + ($8000 * 0.6209) - $64000

Net Present value = $68,234.4+$4,967.2-$64,000

Net Present value = $9,201.6

Therefore The net present value of the proposed investment is closest to:$9,201.6

3 0

3 years ago

Nathan goes to a store to purchase laundry detergents. When Nathan looks around to make a brand selection, he realizes that he l

lorasvet [3.4K]

Answer:

its either inert set or the inept set

Explanation:

Inert set: Those brands of which the consumer is aware, but towards which he or she is basically indifferent. Brands in this set are generally considered acceptable by the consumer when preferred brands are not available

Inept Set. brands that a buyer is aware of when considering a purchase, thinks poorly of, but uses in some way as a source of information. See: Inert Set Evoked Set.

these are the 2 definitions for both of them

7 0

4 years ago

When a German company decides to build a new hotel in Manhattan and the design calls for the 13th floor to be renamed the 14th f

Andrews [41]

Answer:

It is acknowledging a cultural symbolism about the number 13

Explanation:

A cultural symbol is an object, a behavior or a word that has a particular meaning in a culture. In Germany the number 13 is considered an unlucky number and they prefer not to use it and this is a cultural symbol. So, according to this, the answer is that the firm is acknowledging a cultural symbolism about the number 13.

4 0

4 years ago