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4 years ago

Accepting a special order will improve overall net operating income if the revenue from the special order exceeds:

Business

1 answer:

max2010maxim [7]4 years ago

6 0

Answer:

The answer is B.

Explanation:

Incremental cost is the extra cost associated with producing one additional unit of production. Incremental cost is the same as marginal cost. incremental cost is a relevant cost.

When making a business decision, only relevant costs are considered. Sunk cost are not considered. Sunk cost had already been incurred and can never be recovered.

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Concord Industries purchased $9,100 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms

marishachu [46]

Answer:

Explanation:

The journal entries are shown below:

a. Merchandise Inventory A/c $8,190

To Accounts payable A/c $8,190

(Being goods purchased on credit)

The computation after applying discount is shown below:

= Purchase amount - purchase amount × trade discount percentage

= $9,100 - $9,100 × 10%

= $9,100 - $910

= $8,190

b. Accounts payable A/c $2,610

To Merchandise Inventory A/c $2,610

(Being goods returned is recorded)

The computation after applying discount is shown below:

= Purchase amount - purchase amount × trade discount percentage

= $2,900 - $2,900 × 10%

= $2,900 - $290

= $2,610

c. Accounts payable A/c Dr $5,580 ($8,190 - $2,610)

To Cash A/c $5,412.60

To Merchandise Inventory A/c $167.40 ($8,190 - $2,610) × 3%

(Being due amount is paid and remaining balance is credited to the cash account)

3 0

4 years ago

Which of the following should be accounted for in an enterprise fund?

gogolik [260]

Answer:

C) . Equipment used for supplying electric power to residents 1,250,000

Explanation:

6 0

3 years ago

Read 2 more answers

A deep sea diving bell is being lowered at a constant rate. After 12 minutes, the bell is at a depth of 400 ft. After 50 minute

ella [17]

Answer: After 50 minutes the bell is at a depth of 2000 ft so we can find the average rate by

2000/50 =40 ft per minute.

We ignore the 400 ft in 12 minutes because that is included when we take out the average at 50 minutes and adding it in would be an error of doubly entry.

Explanation:

6 0

4 years ago

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to

olga_2 [115]

Answer:

Explanation:

Lets understand the terms given in simple language, first.

Acquisition -- occurs when a company takes control of most or all of another company
Licensing -- this is when a company gives permission to another company to manufacture its product, with payment terms
Joint venture -- this is when 2 or more businesses jointly put their resources at work to accomplish more business or a specific task
Exporting -- business selling their goods to other countries
Franchising -- this is when a company gives rights to another to sell their products

In this problem, we see that Chinese companies wants a part of foreign companies when they want to do business in China. That means, both foreign and Chinese company do business together.

We can rule out acquisition, exporting, franchising immediately.

Licensing is rules out as well because they are doing it "TOGETHER", that can mean only "joint venture".

C is the correct choice.

6 0

3 years ago

A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plan

andrew11 [14]

Answer:

The net cash provided or used by operating activities is equal to $148,600.

Explanation:

The net cash provided or used by operating activities can be calculated using the indirect method as follows:

XTZ Co,

Calculation of The Net Cash Provided or Used by Operating Activities

(Indirect Method)

For the Year ....

Particular Amount ($)

Net income 134,000

Adjustment to reconcile net income:

Depreciation expense 30,000

Gain on sale of plant assets (4,000)

(Increase) decrease in current assets:

Decrease in accounts receivable 9,400

Increase in merchandise inventory (18,000)

Increase in prepaid expenses (6,200)

Increase (decrease) in current liabilities:

Increase in accounts payable 3,400

Net cash provided or used by operating activities  148,600 

Therefore, the net cash provided or used by operating activities is equal to $148,600.

7 0

3 years ago