Answer:
15.00%
Explanation:
The formula to compute the return on equity is shown below:
Return on equity = (EBIT × 1 - tax rate) ÷ (total equity)
= ($140,000 × 0.75) ÷ ($700,000)
= ($105,000) ÷ ($700,000)
= 15%
It shows a relationship between the earning after tax and total equity in respect of assets required for the project so that the accurate return can come
Answer:
June 30, repurchase of 100 shares:
Dr Treasury stock 4,000
Cr Cash 4,000
Explanation:
The other journal entries should be as follows
July 20, resale of 50 shares:
Dr Cash 2,300
Cr Treasury stock 2,000
Cr Additional paid in capital 300
August 1, resale of 20 shares:
Dr Cash 760
Dr Additional paid in capital 40
Cr Treasury stock 800
Answer:
a. consists of two or more independent organizations that combine their requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers.
Explanation:
A purchasing consortium consists of two or more independent organizations that combine their requirements for materials, services and capital goods to gain better pricing, service and technology from suppliers. It is also known as group purchasing organization or cooperative purchasing and typically comprises of organizations sharing similar purchasing requirements or needs coming together in order to enhance their purchasing or bargaining power (capabilities) in the market.
The main purpose of a purchasing consortium is to provide a leverage for two or more independent organizations by reducing their purchasing costs when acquiring resources or materials required for the smooth operation of their business.
Answer:
See explanation
Explanation:
(a) Assets are understated - If we do not adjust accrued revenue, the assets are understated. For example - if we do not add any outstanding rent revenue, the assets will become understated.
(b) Liabilities are overstated - If we do not adjust unearned revenue, the liabilities are overstated. For example - if we do not deduct any expired unearned revenue, the liabilities will become overstated.
(c) Liabilities are understated - If we do not adjust accrued expense, the liabilities are understated. For example - if we do not add any outstanding rent expense, the liabilities will become understated.
(d) Expenses are understated - If we do not adjust accrued expense and prepaid expense, the expenses are understated. For example - if we do not add any outstanding rent expense and expired prepaid expenses, the expenses will become understated.
(e) Assets are overstated - If we do not adjust prepaid expense, the assets are overstated. For example - if we do not deduct any expired prepaid insurance, the assets will become overstated.
(f) Revenue is understated - If we do not adjust accrued revenue and unearned revenue, the revenue is understated. For example - if we do not add any outstanding rent revenue and expired unearned revenue, the revenue will become understated.
