<span>I put professional and amateur groups but if you want you may choose different
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Answer:
A
Explanation:
Average rate of return is a capital budgeting method. It is used to determine if a firm should invest in a project or should not invest in a project
average rate of return = average net income / average cost of investment
average net income = (total net income - depreciation) / useful life
(8,500,000 - $4,250,000) / 20 = 212,500
Average cost of investment =( beginning book value of the investment - ending book value of the investment) / 2
($4,250,000 - 0) / 2 = 2,125,000
ARR = 212,500 / 2125,000 = 0.1 = 10%
Answer:
Supplies Used = $2475
Explanation:
<u>Bruce Company</u>
Supplies Purchases $4,300
Supplies on hand $1,825
Supplies Used = $ 4300- $ 1825 = $2475
The amount of Supplies used ( $ 4300- $ 1825 = $2475) will be shown in the income statement as an expense and the amount of unused supplies or Supplies on hand $1,825 will be shown in the Balance sheet as an asset account. The both of which will total the supplies actually purchased.
The relating <u>adjusting entry </u>will be
Supplies Expense $ 2475 Debit
Supplies Account $ 2475 Credit
This means the supplies of the amount $ 2475 have been used and is recorded as an expense in the income statement. It will be deducted from the gross profit. The remaining amount $ 1825 is for future use so recorded as an asset in the Balance Sheet and added to the total assets.
Answer:
The adjustment to net income for the period will be reported as:
Debit Interest expense ($600 - $500) $100
Credit Interest payable $100
<em>(Being interest expense for the period)</em>
Explanation:
Interest payable is the accumulation of the interest expense in the balance sheet overa specific period of time agreed with the creditor. When it becomes payable, the interest payable account is debited while cash is credited.
The interest payable in the Coffee Cup Company's account increased from $500 (credit balance) to $600 credit balance. This means there would have been an additional $100 interest expense recorded during the period in order to increase it to $600.
Answer:
The correct answer is letter "D": Inflation adjusted, real.
Explanation:
The real value is one that has been adjusted for inflation, allowing amounts to be measured as if the market price of goods had remained the same. Moreover, real-life modifications in value omit the impact of inflation. Following this process, the <em>real Gross Domestic Product</em> (<em>GDP</em>) can be calculated.
