Answer:
."Balance" the accounting equation by increasing expenses.
Explanation:
If an organization wants to manipulate its accounting records so that it could conceal their fraud so the best way is to balance the accounting equation by increasing the expenses so no one can judge it and they can fulfill their objective
Here,
Accounting equation is
Total assets = Total liabilities + stockholder equity
The company increases their expenses with a motive to earn high income and wants to hide it by this method
So in the given case, the same method is applied
Alfred Wegener was the scientist who proposed the Continental Drift Theory in the early twentieth century. Simply put, his hypothesis proposed that the continents had once been joined, and over time had drifted apart. I hope my answer has come to your help. God bless and have a nice day ahead!
Answer:
The amount collected from customers on accounts receivable during year 3 is $535,000.
Explanation:
Cash received from accounts receivable = Opening balance of AR + Credit Sales - Bad debts written off - Closing balance of AR.
- The opening balance for year 3 account receivables was 150000.
- Credit Sales = 600000
- Bad debts = 40000
- Closing Balance = 175000
We can solve this question either by making a T account for accounts receivable or using the equation given above.
Cash = 150000 + 600000 - 40000 - 175000 = $535000
195x6=1170, so he will have 1170 dollars in his college fund by senior year
Answer:
Margin of safety=55.6%
Explanation:
The formula for the operating income is as folows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=Answer:
Explanation:
The formula for the operating income is as follows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=$90,000
Current sales=$90,000
The formula for margin of safety is as follows;
Margin of safety=(Current sales level-break even point sales level)/current sales levels
At break even,
Operating income=0
0=S-(0.7 S+12,000)
0=S-0.7 S-12,000
0.3 S=12,000
S=12,000/0.3
S=40,000
Break even sales=$40,000
replacing;
Margin of safety=((90,000-40,000)/90,000}×100
Margin of safety=55.6%
