Answer: Will report a liability of $5000 for judgement debt and a claim of $11,000
Explanation:
The liability refers to the obligations of the firm which are certain is going to make payment as compensation.
The $5000 liability, although payment has not been made it's already Incurred by the company under the acural concept.
The claim of $11,000 is only probable and not certain even though amount and time of execution can be estimated, since it's not certain it will only be recorded as a claim in the goverments fund balance sheet.
Answer:
An automatic identification system (AIS) is an automated tracking device fitted to a vehicle or vessel to display objects around the vicinity of the vessel on a screen. This helps the driver of a vehicle, for instance, to identify such objects and know how to afford head-on collisions. For a ship, the signal sent to the VT station helps in monitoring movements around the ship.
Explanation:
Most ships are fitted with AIS to enable Vessel Tracking services. The AIS also shows the other ships that are around and transmits the information to the Vessel Tracking Station (VTS). Some modern cars are fitted with AIS to help the driver to identify obstructive objects. The identified signal is displayed on the dashboard of the car just as the maritime AIS displays on the ship's dashboard as it also transmits to the VTS.
Answer:
B. Cash, accounts receivable, inventories, prepaid items.
Explanation:
In the balance sheet, assets are presented in an orderly manner guided by the amount of time they take to convert into cash. Assets requiring the shortest time to convert into cash will appear first. Cash will always be on top as it does not require conversion.
Goodwill comes last as the business will have to be sold for it to turn into cash.
- In the list provided, cash will appear first.
- Accounts receivable is money a business expects to receive from customers for goods or services provided. In practice, the money should be received within 60 days
- Inventories in assets refer to finished goods in the store. They are awaiting sales. Inventories will take longer as stocks have to be sold and become account receivable before converting to cash.
- Prepaid items are expenses paid before their due date. They appear in the balance sheet as cash assets because they have not been consumed. The expectation is that they will be utilized within the current year. Converting into cash them will require getting a refund from the recipient of the funds, which could be a lengthy process.
Answer:
The operating income for the year is $97,000
Explanation:
For computing the operating income, first, we have to calculate the cost of goods sold. The formula to compute the cost of good sold is shown below:
= Beginning merchandise inventory + Purchases during the year - Ending merchandise inventory
= $33,200 + $92,000 - $35,000
= $90,200
Now, the operating income would be
= Sales - the cost of good sold - selling and administrative expenses
= $262,900 - $90,200 - $75,700
= $97,000
