Answer:
C. Depreciation is a current expense of a cash outflow in the current period.
FALSE depreciation is a deferral expense it do not related t oa cash flow
Explanation:
A. The income statement is put together at a specific point in time (end of a business quarter, or business year) and so the sale could be in one period and the cash received in another period.
CORRECT income statement end at a certain date and include transaction under accrual accounting which doesn't relate to cash disbursements or collection
B. The income statement contains the set of expenses associated with the products or services sold during the current operating period, with those expenses not associated with current cash flow labeled as nonminuscash expense items
CORRECT It works with accrual accounting
D. Companies depreciate fixed assets (such as office furniture, equipment, machinery, and buildings) over an assigned time period, but the initial cash outlay for the fixed asset typically occurs at the time the asset is acquired by the firm.
CORRECT the cash disbursements occurs at time zero. Then, the accounting distributes this over several period to decrease the impact in the first period
Answer:
$619.75
Explanation:
This is a problem of future value with compounded interest.
The equation that describes the future value of an amount (P) deposited for a period of 'n' years at an annual rate (r) compounded quarterly is:
For a $550 investment at 4% per year for 3 years, the future value is:
In 3 years, Jose will have $619.75 available towards the down payment for his motorcycle.
Answer:
The gross profit margin of Candy Company is 65% (second option)
Explanation:
The gross profit margin is defined as:
Mg = (sales - costs) / price of sales
If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:
Mg = ($320,000- $112,000) * 100% / $320,000 =
Mg = $208,000 * 100% / $320,000 = 0.65 * 100%
Mg = 0.65 * 100%
Mg = 65%
If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)
Answer:
Sep 6 Debit inventory $ 1740, Credit Accounts payable $1740
Sep 9 Debit inventory $40 , Credit freight expense $40
Sep 10 Debit Accounts payable $56, Credit inventory $56
Sep 12 Debit Accounts receivable $650, Credit Revenues $650
Debit Cost of Sales $450, Credit Inventory $450
Sep 14 Debit Sales return $45, Credit Accounts Receivable $45
Debit Inventory $34, Credit Cost of sales $34
Sep 20 Debit Accounts receivable $730, Credit Revenues $730
Debit Cost of Sales $560 , Credit Inventory $560
Explanation:
The Question is incomplete but its nature shows that it requires journal entries for The Sep month transactions.
