Answer:
<u>income statement for the year ended </u>
investment income $48,000
Intergoverment grant 8,000
Net increase in fair value of investemnt <u> 2,000</u>
Total Income 58,000
Expenditure - Subscription <u>(39,500)</u>
Net income <u>18,500</u>
<u />
Balance sheet as at the year end
Asset
cash $8,500
Investment 518,000
Accrued interest receivable <u> 2,000</u>
<u> 528,500</u>
Additional to permanent endowments 510,000
Net Income <u> 18,500</u>
<u> 528,500</u>
Explanation:
Answer:
C. Management
Explanation:
The Management of an organisation is primarily responsible for preparing the financial statements for that organisations to be consumed by relevant parties including the shareholders, the government and the society at large.
It is the responsibility of the Auditor to ensure that the prepared financial statement shows a true and fair state of the business for the period presented.
A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is expected to be reported in the financial statement if it is likely to occur and can be reliably estimated.
Since Management is responsible for the preparation of the statement, then the inclusion of contingent liability is its responsibility.
Answer:
12.88
Explanation:
Given that,
Ending inventory = $386,735
Cost of goods sold for the year just ended = $4,981,315
The inventory turnover ration is determined by dividing the Cost of goods sold for the year just ended by the Ending inventory.
Inventory turnover:
= Cost of goods sold ÷ Ending inventory
= $4,981,315 ÷ $386,735
= 12.88
Therefore, the inventory turnover for the king corporation is 12.88
