Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. Under "current liabilities"section of balance sheet this account will be recorded as "account payable".
Answer: Option (B) is correct
<u>Explanation:</u>
Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.
Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.
Answer:
A) kiosk marketing
Explanation:
kiosk marketing -
The marketing strategy , which a kiosk is used , is known as kiosk marketing .
A kiosk , is a temporary booth operated by one or two people, which is used to attract people, specifically placed in a crowded place, for marketing purpose .
Kiosks are placed in places like , malls , busy street etc .
Hence , the company , Green gardens set up kiosks in order to attract people and increase their customers and thereby increasing their profit .
Answer:
b. 0.77
Explanation:
The formula to compute the loan to value ratio is shown below:
= Loan amount ÷ Purchase price
= $1,000,000 ÷ $1,300,000
= 0.77
It shows a relationship between the loan amount and the purchase price so that the accurate ratio can come
All other information that is given is not relevant as it is related to the debt yield ratio. Hence, ignored it
The responsibility that each person has not to harm another person, the community, or the environment
Answer:
Contribution margin per production hour
Product X = $12
Product Y = $15
Explanation:
Part 1
Contribution margin per production hour
Contribution margin per production hour = Contribution ÷ Time to produce one product
Therefore,
Product X = $6 ÷ 0.5
= $12
Product Y = $5 ÷ 0.33
= $15
Part 2
The Demand Units of Product X and Product Y are missing so the calculation of profitable sales mix is impossible.
This mix would have been calculated by :
- Manufacturing all the units of Product Y since Y has the highest contribution margin per production hour (demand for Y × hours required per unit)
- With the remainder of hours out of 4,700 after producing all of Product Y demand, we would then produce Product X.
