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Lana71 [14]
3 years ago
9

Woods Company made an ordinary repair to a delivery truck at a cost of $500. Woods' accountant debited the asset account, Equipm

ent. Was this treatment an error, and if so, what will be the effect on the financial statements of Woods
Business
1 answer:
Nutka1998 [239]3 years ago
5 0

Answer:

Yes this statement was an error and its effect on financial statements of Woods will be that asset ( equipment in this case) would be overstated and obviously the net income of the company would also increase.

Explanation:

Here Woods accountant has made the error of debiting the cost of $500 on the asset account ( equipment) , which shouldn't have happened  as the asset accounts have natural debit balance which means that when an amount is debited to the asset account it will increase the value of the asset.

So therefore here we can say that the asset here is overstated and if the assets are shown overstated it is natural that the income reflected would also be overstated.

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Which of the following statements is correct?A. Wide variations in capital structures exist both between industries and among in
erik [133]

Answer: Wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.

Explanation:

Out of the options that are given in the question, the correct option is that wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.

All the other options are false. Debt-to-total-assets ratios varies much among different industries.

4 0
3 years ago
A high-ranking manager who advocates the project and uses her or his influence to gain approval of the project is a project
kolbaska11 [484]
Such a person is the PROJECT SPONSOR. A project sponsor is the person with the overall accountability for a project, he has the responsibility to ensure that the project delivers the agreed business benefits. He is usually the one who is responsible for securing the financing and total resources project approval.
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3 years ago
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the
sveta [45]

Answer:

a. Wholesale division.

Explanation:

The formula to compute for return on investment is shown below:

Return on investment = Operating Income ÷ Operating Assets

For Retail Division, it would be

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= 15.625%

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= $6,000,000 ÷ $36,000,0000

= 16.67%

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3 0
3 years ago
Support systems on a service blueprint include all of the following except the _____ .
Gre4nikov [31]

Answer:

server

Explanation:

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A service blueprint illustrates the relationship between various service components that interact directly or indirectly with customers. They include customer facings and back-office employees and digital interfaces such as the company website.

3 0
2 years ago
Some economists say that economic growth involves a​ trade-off between current generations and future generations. If a current
mixas84 [53]

Answer:A) Current Consumption

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6 0
3 years ago
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