Answer: 1. D) Assets are understated
2. D) Car dealers
Explanation:
1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.
2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.
Answer:
$27,400
Explanation:
The amount of cash at the end of the period is calculated as;
Cash provided by operating activities
$18,200
Cash used by investing activities
($6,700)
Cash used by financing activities
($1,200)
Net increase (decrease) in cash balance
(a) $10,300
Cash at the beginning of the year
(b) $17,100
Cash at the end of the year
c = (a) + (b) = $27,400
Answer: D. $7,500
Explanation:
Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.
Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.
Answer:
AUD 39.93 is expected to be received for your baht.
Explanation:
To calcuate the cross currency exchange rate between Thai Baht and AUD, inverse the USD per Thai Baht quote, this will give you (1/0.023 = 43.478). Now, multiply this by USD per AUD ( TBHT by USD multiplied by USD by AUD, thus USD will cancel out and leave you with TBHT by AUD). The Final ER will stand at TBHT 25.0434 per AUD. Divide the sum of TBHT 1000 by 25.0434 and you will recieve AUD 39.93
