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3 years ago

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Office Supplies had a normal starting balance of $75. There were debit postings of $80 and credit postings of $60 during the mon

th. The ending balance is a A. $55 debit. B. $55 credit. C. $95 debit. D. $95 credit.

2 answers:

aleksley [76]3 years ago

8 0

The answer would be a.

kobusy [5.1K]3 years ago

6 0

Answer:

It is 95 debit

Explanation:

i took the test

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The Security Market Line (SML) shows the relationship between stocks' required rates of return (measured on the vertical axis) a

natka813 [3]

Answer:

True

Explanation:

The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:

Y = a + bX

Here

a = Rf

B = Risk premium = Rm - Rf

X = Beta Factor

So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.

So the statement is true.

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3 years ago

The Brookstone Company produces 9 volt batteries and AAA batteries. The Brookstone Company uses a plantwide rate to apply overhe

Rzqust [24]

Answer:

Over applied Overhead =$ 42,500

Explanation:

Actual Overhead $325,000

Estimated Overhead $350,000

Over applied overhead is when the Predetermined overhead is more than the actual overhead . Under applied overhead is when the Predetermined overhead is less than the actual overhead .

Predetermined Overhead rate= Overhead / total direct labor hours

= 350,000/ 500,000 (100)= 70%

Applied Overhead = Predetermined Overhead rate( actual direct labor hours)

= 70 % (525,000) = $367,500

Applied Overhead $367,500

Less Actual Overhead $325,000

Over applied Overhead =$ 42,500

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3 years ago

Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction,

leonid [27]

Answer:

Explanation:

Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2

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3 years ago

An article in the Economist on the Irish economy argues, Irish progress, both economic and fiscal, is typically measured usin

anygoal [31]

Answer:

GDP is the value of the total production of final goods and services produced within a country (in this case Ireland), while Gross National Product (GNP), in this specific case, is the value of the total production of final goods and services produced by residents of the Ireland (individuals or businesses).

Since several corporations have international headquarters in Ireland due to special tax regimes, e.g. Apple, Microsoft, Google, Intel, Pfizer, FB, etc., and many of those corporations manage all their world trade (except local trade in the US) through those offices, they are very large and wealthy.

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2 years ago

Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is

sergey [27]

Answer:

1.

* Number of Cups of coffee served in a week is 1,800:

Fixed cost: $1,100

Variable cost: $0.26

Total cost average cost per cup: $0.87 ( which is calculated as Total Fixed cost/Total of cups served + Variable cost per unit = 1,100/1,800 + 0.26)

* Number of Cups of coffee served in a week is 1,900:

Fixed cost: $1,100

Variable cost: $0.26

Total cost average cost per cup: $0.84 ( which is calculated as Total Fixed cost/Total of cups served + Variable cost per unit = 1,100/1,900 + 0.26)

* Number of Cups of coffee served in a week is 2,000:

Fixed cost: $1,100

Variable cost: $0.26

Total cost average cost per cup: $0.81 ( which is calculated as Total Fixed cost/Total of cups served + Variable cost per unit = 1,100/2,000 + 0.26)

2.

The average cost per cup of coffee served decreases as the number of cups of coffee served in a week increases.

This is because average cost per cup of coffee served is equal to the sum of allocated fixed cost to one cup of coffee + variable cost of one cup of coffee. Although the variable cost of one cup of coffee remains the same given changes in the number of cups served, the allocated fixed cost to one cup of coffee decreases as the cups served increases as Total fixed cost remained the same, yet it will be allocated to more cup served, so the amount allocated to one cup served will decreases.

A formula will make it easy to understand:

Average cost per cup of coffee served = Variable Cost + Total Fixed cost/Total of cups served. Variable cost and total fixed cost remains the same with the variation of number of cup served; thus as number of cups served increases, Average cost per cup of coffee served decreases.

Explanation:

7 0

3 years ago