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viktelen [127]
3 years ago
5

When recording depreciation, which of the following statements is true?

Business
1 answer:
professor190 [17]3 years ago
5 0

Answer:

D. None of the above are true.

Explanation:

As while recording depreciation, the total assets is decreased and the stockholder equity is also decreased as depreciation is a contra asset account

In the side of stockholder equity, the net income, the retained earning and the stockholder equity is decreased

whereas, the total asset is decreased as the amount of asset is reduced by deducting the accumulated depreciation amount

The journal entry is shown below for better understanding

Depreciation Expense A/c XXXXX

To Accumulated Depreciation XXXXX

(Being depreciation expense is recorded)

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When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the bu
MariettaO [177]

When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the business. This practice is known as bootstrapping.

<h3>What is bootstrapping?</h3>

Bootstrapping is a word used in business to describe the process of starting and growing a firm utilizing solely available resources, such as personal funds, personal computing equipment, and garage space.

Learn more about bootstrapping here:

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5 0
1 year ago
Annual general meeting what is it?
Sonbull [250]

Answer: Gathering of the directors and stockholders (shareholders) of every incorporated firm, required by law to be held each calendar year. Generally, not more than 15 months are allowed to elapse between two AGMs, and a 21-day's written notice of its date is required to be given to the stockholders. The main purpose of an AGM is to comply with legal requirements, such as the presentation and approval of the audited accounts, election of directors, and appointment of auditors for the new accounting term. Other items that may also be discussed include compensation of officers, confirmation of proposed dividend, and issues raised by the stockholders.

7 0
3 years ago
Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommo
DiKsa [7]

Answer:

$236,250

Explanation:

The computation of external financing is shown below:-

For computing the external financing first we need to find out the retained earning which is shown below:-

Net income = Sales × Profit margin

= $2,500,000 × 15%

= $375,000

Increase in retained earning = Net income - Dividends

= $375,000 - ($375,000 × 35%)

= $375,000 - $131,250

= $243,750

External financing = Increase in assets - Increase in retained earning

= $480,000 - $243,750

= $236,250

8 0
3 years ago
A provider of oil for home heating systems is offering $100 off its first delivery to new customers. This is an example of which
Radda [10]

Answer:

b. Free gift with purchase

Explanation:

The promotion tactic that the provider is trying to use is a Free gift with purchase. This is because by making your first every purchase the company is basically gifting you a certain amount of money through a discount of your purchasing total. Companies tend to do this in order to attract customers through the enticement of free money or products/gifts. They are able to do this because a single purchase will make them more profit than they are wasting on the gift and can lead to recurring customers.

7 0
3 years ago
A proposed new investment has projected sales of $832,000. Variable costs are 57 percent of sales, and fixed costs are $187,260;
miskamm [114]

Answer:

The projected net income of the proposed investment is $53,200.

Explanation:

3 0
3 years ago
Read 2 more answers
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