In a 100 percent capitalist structure, there are basically
two advantages that the owners are offered:
1. They can make as much profit as they desire, as long as they are
hardworking and the market permits it.
2. They don’t have to bother themselves about the welfare of their workers.
Answer:
Cobras Incorporated
Trial Balance as at March 31.
Debit Credit
Supplies $1,100
Buildings $41,000
Cash $2,100
Accounts Receivable $2,800
Prepaid Insurance $1,100
Salaries Payable $300
Accounts Payable $1,500
Common Stock $21,000
Retained Earnings $14,500
Service Revenue $18,100
Utilities Expense $2,300
Salaries Expense $5,000
Totals $55,000 $55,000
Explanation:
A Trial Balance is used to check mathematical accuracy in ledger Accounts. It represents a list of Balances : Debit and Credit extracted from the Ledger Accounts.
To record the write-off of receivables:
Allowance for doubtful accounts ----------------------------$24,000
Accounts Receivable -----------------------------------------------$24,000
To record the accounts receivable collected from the written-off receivable, first restore the accounts receivable with the following entry:
Accounts Receivable ------------------------------------------$1,900
Allowance for doubtful accounts ------------------------------$1,900
To record the collection of accounts receivable:
Cash -----------------------------------------------------------------$1,900
Accounts Receivable ----------------------------------------------$1,900
Or, the direct journal entry to record the collection of previously written-off accounts receivable is:
Cash ---------------------------------------------------------------$1,900
Allowance for doubtful accounts ------------------------------$1,900
Answer: b. pays cash before the expense has been incurred.checked
d. receives cash before the revenue has been generated
Explanation:
Here is the complete question:
Deferral adjustments are needed when the business:
a. pays cash after the expense has been incurred.unchecked
b. pays cash before the expense has been incurred.checked
c. receives cash after the revenue has been generated.unchecked
d. receives cash before the revenue has been generated.
Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.
Deferral adjustment is when the revenue or the expense has been deferred or postponed and will therefore be reported on the income statement at a later period.
Previously deferred amounts will show on the balance sheet when a company pays cash before having to incur the expense or in a case whereby the company gets and collects cash before earning the revenue.
When revenues are made or when expenses are incurred, the previously deferred amounts will have to be adjusted and then, the amounts will be transferred to income statement through the use of the deferral adjustment.
Answer: The following is not considered when you are calculating cost of quality:<u><em> The cost of gaining formal acceptance of project deliverable.</em></u>
Cost of Quality contains all the costs that are both internal and external to the system; whereas, the Cost of Quality include the conformance, considering any costs connected with both appraisal and interference.
Cost of Quality is calculated as :
Cost of Quality = Cost of Poor Quality + Cost of Good Quality
