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3 years ago

Which statement is false?

Business

1 answer:

Llana [10]3 years ago

5 0

Answer:

The statement which is false is the no matter that whether perpetual inventory system or periodic system is used by company, but all the companies require to evaluate inventory quantities at the end of the accounting period.

Explanation:

The statement is false because the companies does not require to determine or assess the inventory quantities at each accounting period.

Therefore, the correct option is C.

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To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use: A. Mandatory

Dafna11 [192]

Answer:

Paticipative budgets

Explanation:

A budget can be defined as a financial plan which gives an estimate of income and expenditures. A budget is a tool that is utilized by different organisations to manage their resources inorder to achieve their various objectives and goals.

A budget shows the different costs incurred by the organisation within a particular period of time.

Participative budgets is a type of budget in which the low level management of an organization are involved in the preparation of budget. It helps to prevent top managers from unruly behaviours.

Participative budget enables the top level and low level managers to share information that will lead to the growth of the organisation.

8 0

2 years ago

Austin Financial recently announced that its net income increased sharply from the previous year, yet its net cash provided from

Helen [10]

Answer:

Option D) The company’s depreciation expense declined.

Explanation:

It happens because when company´s depreciation decrease you have less cost of sales and an improvement in the Gross Margin and hence in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash because less depreciation means less total cash,

Total Cash it's defined by Net Income plus Depreciation, a less Depreciation means less Net Cash.

5 0

3 years ago

For each item listed below, indicate in the space to the right whether the item would be considered a product cost or a period c

Katena32 [7]

Answer:

1. Factory supervisory salaries Production Cost Factory Overhead

2. Sales commissions Period Cost Selling expense

3. Income tax expense Period Cost tax expense

4. Indirect materials used Production Cost Factory Overhead

5. Indirect labor Production Cost Factory Overhead

6. Office salaries expense Period Cost Administrative expense

7. Property taxes on factory building Production Cost Factory Overhead

8. Sales manager's salary Period Cost Selling expense

9. Factory wages expense Production Cost Direct Labor

10. Direct materials used Production Cost Direct Materials

Explanation:

A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets

Period cost goes straight to expense account

While

Production Cost do capitalizes through Inventory and later recognize as cost of goods sold.

3 0

3 years ago

A glass company making windows for houses also makes windows for other things (cars, boats, planes, etc.). We would expect its s

Kryger [21]

Answer:

C) Relatively more elastic than those of firms which only make house windows

Explanation:

The supply curve for this company will be more elastic than the supply curves of its competition because it can decide to produce either house windows or other types of windows depending on which product generates the largest profit. For example, if the price of car windows increases, then the company's supply of car windows will increase.

6 0

3 years ago

Nadia Company, a merchandising company, prepares its master budget on a quarterly basis. The following data has been assembled t

pentagon [3]

Answer:

Nadia Company

1. Schedule of expected cash receipts from customers :

April May June

Cash 20% $52,500 $55,125 $57,880

Credit 80% 48,000 210,000 220,500

Total receipts $100,500 $265,125 $278,380

2. Schedule of expected cash payments for purchases :

Payment for purchases: April May June

50% (month of purchase) $81,900 $85,995 $90,293

50% (following month) 18,300 81,900 85,995

Total cash payment $100,300 $167,895 $176,288

3. Statement of Cash budget for the second quarter ended June 30:

April May June Total

Beginning cash balance $9,000 ($58,363) ($23,649) $9,000

Cash receipts from customer 100,500 265,125 278,380 644,005

Total cash available $109,500 $206,762 $254,731 $653,005

Cash payments:

Purchases $100,300 $167,895 $176,288 $444,483

Selling & Administrative 76,063 79,516 82,615 238,194

Equipment purchase 11,500 3,000 14,500

Dividends 3,500 3,500

Total cash payments: $187,863 $250,411 $262,403 $700,677

Cash shortfall ($78,363) ($43,649) ($7,672)

Bank overdraft 20,000 20,000 16,000 56,000

Cash balance ($58,363) ($23,649) $8,328 $8,328

Explanation:

a) Data:

Nadia Balance Sheet as of March 31:

Cash $9,000

Acct Receivable 48,000

Inventory 12,6000

Buildings & Equip. (net) 214,100

Total $283,700

Acct. Payable $18,300

Common Stock 190,000

Retained Earnings 75,400

Total $283,700

b) Sales:

Month Quantity Unit Price Total

March 10,000 units $25.00 $250,000

April = 10,500 (10,000 x 1.05) " $262,500

May = 11,025 (10,500 x 1.05) " $275,625

June = 11,576 (11,025 x 1.05) " $289,400

July = 12,155 (11,576 x 1.05) " $303,875

c) Sales Terms:

March April May June

Cash 20% $52,500 $55,125 $57,880

Credit 80% 48,000 210,000 220,500

d) Inventory:

March April May June

8,400 8,820 9,261 9,724

Ending $126,000 $132,300 $138,915 $145,860

Beginning $126,000 $132,000 $138,915

e) Selling & Administrative Expenses

April May June Total

Salaries and wages $7,500 $7,500 $7,500 $22,500

Shipping 15,750 16,538 17,364 49,652

Advertising 6,000 6,000 6,000 18,000

Others 10,500 11,025 11,576 33,101

Depreciation 6,000

Sales commissions 32,813 34,453 36,175 104,441

Sales Manager's Salary 3,500 4,000 4,000 11,500

Total $76,063 $79,516 $82,615

f) Purchases of Inventory

April May June Total

Ending Inventory 8,820 9,261 9,724

Units of Inventory sold 10,500 11,025 11,576

Inventory available for sale 19,320 20,286 21,300

less beginning inventory 8,400 8,820 9,261

Purchases 10,920 11,466 12,039

Cost of purchases x $15 $163,800 $171,990 $180,585

Payment for purchases: April May June

50% (month of purchase) $81,900 $85,995 $90,293

50% (following month) 18,300 81,900 85,995

Total cash payment $100,300 $167,895 $176,288

g) April May June

Equipment purchase $11,500 $3,000

h) Nadia Company's preparation of quarter budgets helps it to foresee cash shortages and make necessary arrangements to meet up with cash obligations. It focuses management efforts to achieve sales and deliver on other perimeters, including the control of expenses. It is important for the master budget to be prepared with inputs from other subsidiary budgets so that management plans ahead.

4 0

3 years ago