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Alborosie
3 years ago
11

ichael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State Colle

ge. The business has cash of​ $8,000 and furniture that cost​ $9,000 and has a market value of​ $13,000. The business debts include accounts payable of​ $6,000. Michael's personal home is valued at​ $400,000, and his personal bank account has a balance of​ $1,200. Identify the principle or assumption that best matches the​ situation: a. ​Michael's personal assets are not recorded on the Apartment​ Exchange's balance sheet. b. The Apartment Exchange records furniture at its cost of​ $9,000, not its market value of​ $13,000. c. The Apartment Exchange reports its financial statements in U.S. dollars.
Business
1 answer:
sertanlavr [38]3 years ago
5 0

Answer:

Option "A" is the correct answer to the following statement.

Explanation:

Business Entity Assumption state that businessman and business are a different entity.

Under the Business Entity Assumption, Personal assets and Company assets are always different, Personal assets will never show in the Company's balance sheet.

In the case of Michel McNamee his bank account and personal home in not recorded in the company's book.

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A company estimates that warranty expense will be 2% of sales. The company's sales for the current period are $176,000. The curr
erastovalidia [21]

Answer:

The answer is

Dr Warranty Expense $3,520

Cr Estimated Warranty Liability $3,520

Explanation:

Warranty expense is a contingent liability and it is defined as liabilities that may be incurred by a firm or business depending on the outcome of an uncertain future circumstance.

Current sales = $176,000

Warranty expense = $3,520(2% of $176,000).

The rule: Debit increases assets and expenses while credit reduces it.

Credit increases equity(stock), sales(revenue) and liabilities while debit reduces it.

Therefore the period entry is

Dr Warranty Expense $3,520

Cr Estimated Warranty Liability $3,520

8 0
3 years ago
The board of directors at Millco announces plans to build six new regional factories in the United States that will produce capi
Umnica [9.8K]

Answer:

The factories will increase economic growth because more jobs will be provided.

Explanation:

Given:

The board of directors at Millco announces plans to build six new regional factories in the United States that will produce capital and consumer goods for the entire western hemisphere.

To find: If economic growth increases or decrease.

Solution:

Economic growth will increase as more jobs will be provided which increases employment.

5 0
3 years ago
Sam Peters is the sole proprietor of Charismatic Cats​, a business specializing in the sale of​ high-end pet gifts and accessori
deff fn [24]

Answer:

Charismatic Cat's Income Statement for the recent year:

Sales $1,060,000

Less Cost of Sales: $662,200

Gross Profit = $397,800

Less Selling & Administration - $114,700

Net Income - $283,100

Explanation:

a) cost of goods sold includes opening inventory plus purchases, including freight-in, less closing inventory:

Beginning Inventory - $19,800

Purchases - $636,000

Freight-in - $19,500

Less Closing Inventory - $13,100

b) Selling and Administration expenses include the cost of website maintenance, cost of shipping and wrapping boxes, and marketing.

c) Cost of goods sold is deducted from the sales to arrive at the gross profit, which compares the sales income with the sales cost.

d) Net income is a sum of gross profit less all the marketing, selling, and administration expenses incurred in running the business.  This figure represents the gain made from being in business.

Administration - Website maintenance - $53,000

Selling Expenses - $61,700 (marketing - $33,200 + Wrapping box & shipping- $28,500)

3 0
3 years ago
Barkatorium Pet Supplies established a line of credit with its local bank and used (borrowed) $95,000 against it to purchase its
malfutka [58]

Answer:

True

Explanation:

Since it is given in the question that the $95,000 amount is borrowed from the local bank against the purchase its first year's inventory and the same is to be repaid before the end of its fiscal year.

So if the payment is made within the one year the same is to be classified as  current assets and is to be reported on the balance sheet

6 0
3 years ago
The opportunity cost of an action: can be determined by considering both the benefits that flow from as well as the monetary cos
yarga [219]
<h3>Hello there!</h3>

Your question asks what an opportunity cost of an action is.

<h3>Answer: D). is a subjective valuation that can be determined only by the individual who chooses the action.</h3>

The reason why answer choice "D). is a subjective valuation that can be determined only by the individual who chooses the action" is correct because an opportunity cost of an action is not the same for everyone.

An opportunity cost of an action is subjective, meaning that the action can be determined by someone's opinion, feelings, etc. Everyone thinks differently, therefore making everyone's opportunity cost of action different.

A opportunity cost of an action also is determined by the individual themselves, not anyone else. That's why the action is subjective, due to the fact that the decision on the action is determined by the individual personal opinions and feelings.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
8 0
3 years ago
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