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3 years ago

When estimating income, it is better to be:

Business

1 answer:

eimsori [14]3 years ago

5 0

Answer:

When estimating income according to the prudency concept, we are to underestimate income or revenue and over estimate cost or expenses

Explanation:

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Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to Harley's produ

anzhelika [568]

Answer:

Just-in-time inventory management

Explanation:

Just-in-time or JIT is an inventory management approach that encourages the purchase of materials only when they are needed in the production process. The JIT approach eliminates the need for storing large quantities of material for future productions. The acquisition of materials is aligned with the production process.

By adopting JIT, a business saves on inventory costs as materials are not purchased in bulk. Wastage that results from the storage of material is also eliminated. The success of JIT depends on management ability to forecast sales accurately and working with reliable suppliers.

7 0

3 years ago

Multiple-step income statements show

devlian [24]

Answer:

both income from operations and gross profit.

Explanation:

As we know that

The income statement recognized the revenues earned and the expenses incurred for a particular period

And the multiple-step income statement refers to the classification of expenses like

The format is shown below:

Sales XXXXX

Less: Cost of goods sold XXXXX

Gross profit XXXXX

Less: Operating expenses

Administrative expenses XXXXX

Selling expenses XXXXX

Operating income XXXXX

Non operating income or others

Less: Interest expense XXXXX

Rent revenue XXXXX

Net income XXXXX

Therefore, the third option is correct

4 0

3 years ago

Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000

frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

$2,000 in the first year
$6,000 in the second year
$7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year dividends

1 $2,000

2 $6,000

3 $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

$2,000 in the first year
$6,000 in the second year
$7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

7 0

3 years ago

The Work in Process Inventory account of a manufacturing company has a $11,625 debit balance. The company applies overhead using

Monica [59]

Answer:

The multiple choices are given below:

217%.

148%.

68%.

147%.

46%.

The correct option is 217%

Explanation:

Overhead applied can be determined using the below formula total cost formula:

The total cost of work-in-process inventory=direct material cost+direct labor cost+overhead applied

total cost of work-in-process is $11,625

direct material cost is $3,700

direct labor cost is $2,500

overhead applied is the unknown

$11,625=$3,700+$2,500+overhed applied

$11,625=$6200+overhead applied

overhead applied=$11,625-$6,200=$5,425.00

predetermined overhead rate=overhead applied/labor cost=$5,425.00/$2,500.00=217%

6 0

3 years ago

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $400. The fund wa

erica [24]

Answer: C. A debit to Petty Cash of $189.

Explanation: from the above question, the total amount given out of the petty cash is $189. That is why we are reimbursing the petty cash with $189.

In Accounting, the receiving account is debited while the giving account is credited. That is why we will reimburse the petty cash account by Debiting the petty cash account with $189 and crediting the bank with $189.

6 0

3 years ago