1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kisachek [45]
3 years ago
10

ABC purchases inventory for $2,000 and incurs shipping costs of $100 for the goods to be delivered. To record this transaction,

the company debits Inventory for $2,000, debits Selling Expenses for $100, and credits Cash for $2,100. Which of the following statements is correct?
A) Revenues are understated.
B) All accounts are accurately stated.
C) Net income is overstated.
D) Assets are understated.
Specific Identification is used by:
A) Starbucks
B) Manufacturers
C) Grocery Stores
D) Car dealers
Business
1 answer:
Rus_ich [418]3 years ago
6 0

Answer: 1. D) Assets are understated

2. D) Car dealers

Explanation:

1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.

2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.

You might be interested in
Gary owns shares in a company called Archibald Industries Inc. The company's financial performance has been declining over the p
nadezda [96]

Answer:

transferability of investor ownership

4 0
3 years ago
Read 2 more answers
How did the paleolithic people came to know about fire<br><br>very short ​
Mekhanik [1.2K]

Answer:

There are multiple theories, nobody can be 100 percent sure how but here are 2 main theories:

Explanation:

-Lightning strikes a nearby tree, which catches fire. Frightened but inspired, these cavemen venture out, bring burning sticks back into their cave and learn to use fire.

-They may have used pieces of flint stones banged together to created sparks. They may have rubbed two sticks together generating enough heat to start a blaze.

6 0
3 years ago
Suppose that national income in a country is $300 billion, taxes paid by households is $130 billion, household consumption is $1
zhenek [66]

Answer:

$180 billion

Explanation:

The consumption is an act of spending the money from an income. The marginal propensity to consume is the proportion increase in the amount that a consumer is spending. The savings then decline if the consumption increases. In the given scenario the consumption will not raise even if there is an increase in national income and taxes are kept fixed at previous level. This is because marginal propensity to consume is same.

5 0
3 years ago
In a country where only two goods are produced and consumed, the production and consumption of Good X results in external benefi
Fudgin [204]

Answer:

Would unregulated markets produce too much or too little of Good X and Good Y, compared to the efficient output levels for these products?

Explanation:

Good X: Too Little

Good Y: Too Much

8 0
3 years ago
Glaston Company manufactures a single product using a JIT inventory system. The production budget indicates that the number of u
Travka [436]

Answer:

Budgeted overhead= $283,400

Explanation:

Giving the following information:

Production:

October= 192,000

variable overhead is applied at a rate of $0.70 per unit of production.

Fixed overhead equals $149,000 per month.

To calculate the budgeted overhead, we need to determine the total variable overhead for the month:

Budgeted overhead= fixed overhead + total variable overhead

Budgeted overhead= 149,000 + 0.7*192,000

Budgeted overhead= $283,400

6 0
3 years ago
Other questions:
  • What drivers for unethical behavior are evident in reviewing the actions of Bernard Madoff and the managers of the Stanford Fina
    7·1 answer
  • An initial investment of $41,800 fifty years ago is worth $1,533,913 today. What is the geometric average return on this investm
    7·1 answer
  • Recommend four aspects you would include when preparing a flyer
    13·2 answers
  • Sam was willing to contribute $20 this year to his local college radio station. However, after learning that the radio station h
    14·1 answer
  • Dahia comes to the conclusion while reviewing her presentation that she has left out key information in order to shed a better l
    11·2 answers
  • The stockholders’ equity section of Montel Company’s balance sheet follows. Preferred stock—5% cumulative, $10 par value, 16,000
    6·1 answer
  • HELP PLS!!!! What is the organization for social workers?
    9·1 answer
  • Miriam, the controller, is basically claiming that the company is retaliating against her for being pregnant, and that the fact
    12·1 answer
  • Businesses use a number of methods to gather information and create a good picture of their customer base. This ________ can hel
    10·1 answer
  • starskeep, inc., is a fast-growing technology company. the firm projects a rapid growth of 40 percent for the next two years and
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!