That statement is false.
Variable cost is the type of cost that incurred everytime a product is being produced. In flexible budget, the total budget will be adjusted to the amount of changes in volume or activity, which make the variable cost pretty much the same even though the activity is declined
Answer: c. The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note.
Explanation:
The Maturity Value of the note payable will be the Total Amount at the end of 120 days. This amount would be the face value of the Note plus the interest that would have accrued over these 120 days.
Maturity Value = Face Value + ( Face Value * interest rate * term)
= 70,000 + ( 70,000 * 0.06 * 120/360)
= 70,000 + 1,400
= $71,400
Option C is correct.
Answer:
Investing cash flow from current year = -$250,750. This means that the company invested $250,750 in purchasing new equipment and land during the year.
Explanation:
cash flow from investing activities = money received from the sale of assets - money spent purchasing new assets
- money received from the sale of assets = $175,000
- money spent purchasing new equipment = plant & equipment year 20x1 - plant & equipment year 20x2 + cost of old equipment = $1,000,000 - $1,025,000 + $225,000 = $200,000
- money spent purchasing new land = land 20x2 - land 20x1 = $725,750 - $500,000 = $225,750
Cash flow from investing activities = $175,000 - $200,000 - $225,750 = -$250,750
Answer:
Dr Construction 800000
Dr Cost of construction 1200000
Cr Revenue form long-term contracts 2,000,000
Explanation:
Based on the information given What would be the journal entry made in 2020 to record revenue is :
Dr Construction $800,000
Dr Cost of construction $1,200,000
Cr Revenue form long-term contracts $2,000,000
($800,000+$1,200,000)
(Being to record revenue)
