Answer:
A
Explanation:
Net working capital is the difference between current assets and current liabilities.
To understand better, let us assume that the current assets of a company is $50 million and the current liabilities is $10 million. The net working capital is $40 million
If the company increased current assets to $70 million and reduced current liabilities to $5 million. the net working capital is $65 million
So, net working capital increases when a firm increases its current assets and decreases its current liabilities
Answer:
Decrease its total net income by $18,000.
Answer:
Using job costing, the 2018 budgeted manufacturing overhead rate is C. $6,00 per machine-hour
Explanation:
Manufacturing Overheads are absorbed in the production process at their Budgeted Rate multiplied by the Actual Activity during the period.
Budgeted Rate. = Total Budgeted Overhead Cost / Total Budgeted Activity
Total Budgeted Activity is the allocation base used to allocate the Overhead Cost. Franklin Manufacturing uses machine-hours as the only overhead cost-allocation base.
Thus the Budgeted Rate = $300,000/ 50,000
= $ 6.00 per machine hour
Unearned revenues are general revenues that Liabilities created when a customer pays in advance for products or services before the revenue<span> is earned
If a client pay us for our service in advance, we now have an obligation to provide services that we must fulfill in the future.
In accounting, we could consider this obligation as a liability which will be recorded in credit when it increased.
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