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3 years ago

Management should select the depreciation method that

Business

1 answer:

GuDViN [60]3 years ago

7 0

Answer:

Option B

Explanation:

Depreciation refers to an accounting tradition that enables a firm to compose off the worth of an asset throughout an amount of time, generally the beneficial life of the investment.

Assets like equipment and appliances are costly. Instead of recognizing the asset's full cost in the first year one, depreciating the asset helps businesses to distribute the burden and generate income from it.

Thus, depreciation relates to decrease in value of an asset so that expenses can be recorded efficiently and revenue could be computed as per the periods. Therefore, the method of depreciation should be chosen as per its revenue contribution to the entity using it.

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Reston had income of $204 million and average invested assets of $1,990 million. Its return on assets is?

victus00 [196]

Its return on assets is 0.1025.

Given,

Income = $204 million

Average invested assets = $1,990 million

Return on assets = Net income / total assets

= $204 million / 1,990 million

=0.1025

Therefore, Return on asset is 0.1025.

Return on assets (ROA) is a measure of how efficiently a company uses the assets it owns to generate profits. Analysts, managers, and investors use Return on assets to evaluate a company's financial health.

Net income is what the business has left over after all its expenses, including salary and wages, cost of the goods or raw material and taxes.

To learn more about Return on assets here:

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5 0

1 year ago

Which of the following is an example of an ethical standard you may find in

sp2606 [1]

B) bribing government officials

5 0

3 years ago

Sally and Samantha have decided to form a partnership. They have agreed that Sally is to invest $195,000 and that Samantha is to

lapo4ka [179]

Answer/Explanation:

a. Equal division.

$235,000 / 2 = $117,500.

b. In the ratio of original investments.

For Samantha = 65,000 / (65000+195000) * 100 = 25%;

25% of $235,000= $58,750.

For Sally = 195,000 / (65000+195000) * 100 = 75%;

75% of $235,000= $176,250

c. In the ratio of time devoted to the business.

For Sally = 1 x $235,000 = $235,000

For Samantha= 1/2 x $235,000.

d. Interest of 5% on original investments and the remainder equally.

Interest

For Sally= 5% of $195,000 = $9,750

For Samantha= 5% of $65,000 = $3,250.

The remainder= 235,000 - 3,250 + 9750 = $222,000/2= $111,000 equally.

e. Interest of 5% on original investments, salary allowances of $50,000 to Sally and $85,000 to Samantha, and the remainder equally

Interest

For Sally= 5% of $195,000 = $9,750

For Samantha= 5% of $65,000 = $3,250.

The remainder= 235,000 - (9750+50000+3250+85000)= $87,000

(g), except that Samantha is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances

Total salary allowances= $85,000+$65,000=$150,000;

Net income exceeds value by $235,000-$150,000= $85,000

Therefore, 20% of 85,000 = $8,500 as bonus.

5 0

3 years ago

The differences between uninsurable and insurable risks

Varvara68 [4.7K]

Uninsurable risk is one where the insurance company cannot calculate the probability of the risk occurring which can happen due to numerous reasons. An insurable risk is one where the calculations can be made and the premium that gets paid is determined.

3 0

3 years ago

Read 2 more answers

The following transactions occurred at several different businesses and are not related. Post the following transactions into th

Yakvenalex [24]

Answer:

T-accounts:

a. Cash Account

Account Titles Debit Credit

Common Stock $42,000

Common Stock

Account Titles Debit Credit

Cash $42,000

b. Equipment

Account Titles Debit Credit

Cash $20,000

Cash

Account Titles Debit Credit

Equipment $20,000

c. Cash

Account Titles Debit Credit

Office Furniture $3,400

Office Furniture

Account Titles Debit Credit

Cash $3,400

d. Computer

Account Titles Debit Credit

Accounts payable $3,700

Accounts payable

Account Titles Debit Credit

Computer $3,400

e. Office Equipment

Account Titles Debit Credit

Accounts payable $22,400

Accounts payable

Account Titles Debit Credit

Office Equipment $22,400

f. James Taylor, Capital

Account Titles Debit Credit

Cash $12,000

Cash

Account Titles Debit Credit

James Taylor,

Capital $12,000

g. Delivery Truck

Account Titles Debit Credit

Accounts payable $38,500

Accounts payable

Account Titles Debit Credit

Delivery Truck $38,500

h. Accounts payable

Account Titles Debit Credit

Cash $7,200

Cash

Account Titles Debit Credit

Accounts payable $7,200

Explanation:

a) Data and Analysis:

a. Cash $42,000 Common Stock $42,000

b. Equipment $20,000 Cash $20,000

c. Cash $3,400 Office Furniture $3,400

d. Computer $3,700 Accounts payable $3,400

e. Office Equipment $22,400 Accounts payable $22,400

f. James Taylor, Capital $12,000 Cash $12,000

g. Delivery Truck $38,500 Accounts payable $38,500

h. Accounts payable $7,200 Cash $7,200

8 0

3 years ago