Answer:
Explanation:
True
When the payment of salary is not considered reasonable, the excess will be treated as dividend. Hence, Matt is a sole shareholder and is taxable for the dividends as well as salary.
Answer:
$1,560 and $0
Explanation:
According to the accrual method of accounting, the revenue should be recognized when it is realized or when the sale is made not when the cash is received
Since Digby delivers 104 units in April
So for the March income statement, the amount is
= 104 units × $15
= $1,560
And, for the April income statement, it would be zero as the total units order received in March only
Answer:
The target cost for one LittleLaser is $68
Explanation:
For computing the target cost, first we have to compute the profit per laser guns which is shown below:
Profit per gun = (Investment × ROI) ÷ (Number of laser guns sold)
= ($7,828,000 × 25%) ÷ (103,000 laser guns)
= ($1,957,000) ÷ (103,000 laser guns)
= $19
And, the cost price charged is $87
So, the target cost for one Little laser would be
= $87 - $19
= $68
Answer:
D) foreign; domestic
Explanation:
The central Bank can improve the domestic currency by using the reserves. If the domestic currency undervalued the central bank may intervene to sell the Foreign currency and purchase the domestic currency, which will increase the demand of domestic currency and increase the supply of foreign currency in the market which will improve the value of domestic currency and undervalue the foreign currency.
Answer:
a. Cash and accounts payable
Explanation:
The journal entry to record this given transaction is shown below:
Equipment A/c Dr $5,000
To Cash A/c $1,000
To Account payable A/c $4,000
(Being the equipment is purchased for cash and on account)
Since the equipment is purchased for $5,000 that increase the asset account and the cash is paid for $1,000 so it would be credited plus the remaining amount is given on credit basis so we credited the account payable account
