Maintaining good contact in a relationship is also known as the ______

A journal entry that debits Raw Materials and credits Accounts Payable is recording the ______.

lbvjy [14]

When you see a journal entry that leads to a debit of Raw Materials and a credit of Accounts Payable, this is a<u> C. purchase of materials. </u>

<h3 /><h3>What happens when materials are purchased?
</h3>

As materials are an asset, the raw materials account will be debited to show that raw materials are increasing.

If the Accounts Payable is credited, it means that it is increasing as well because it is a liability. The transaction was therefore done by buying the materials on credit.

In conclusion, option C is correct.

Find out more on raw materials purchases at brainly.com/question/26446159.

5 0

2 years ago

What do you mean by economic policy?

Pani-rosa [81]

Answer:

Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting interest rates and government budget as well as the labor market, national ownership, and many other areas of government interventions into the economy.

Explanation:

4 0

3 years ago

Which statement about American prisons is correct?

nika2105 [10]

B. Because D is highly wrong! There are more African-American people in jail than other races. The large war on Drugs put MANY people in jail, yet the state will put anyone in for even the smallest thing.

Most of some of the longer prison sentences were given for Drugs.. Other crimes maybe life, but not all.

8 0

3 years ago

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surr

myrzilka [38]

Answer:

The opportunity costs may be too high, and the motel may not yield high enough returns to offset them.

Opportunity costs is the money you do not earn for choosing one alternative investment or action over another. In this case, the cost of the land is probably very high and the motel (or any other business) might not be making as much money from their regular operations as they could from selling the land and using that money for another investment.

A business will shut down when their economic costs exceed their revenue.

8 0

3 years ago

The company forecasts that its sales will increase by 8 percent in 2005 and its operating costs will increase in proportion to s

Delicious77 [7]

Complete Question:

Luemas Corporation recently reported the following income statement for 2004 (numbers are in millions of dollars):

Sales $12,500

Total operating costs (5,700)

EBIT $6,800

Interest (150)

Earnings before tax (EBT) $6,650

Taxes (40%) (2,660)

Net income available to common shareholders $3,990

The company forecasts that its sales will increase by 8 percent in 2005 and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at $150 million, and the tax rate will remain at 40 percent. The company plans to pay out 70 percent of its net income as dividends, the other 30 percent will be additions to retained earnings. What is the forecasted addition to retained earnings for 2005?

Answer:

$1295

Explanation:

The simple way to solve it is increasing the above income statement sales and operating cost by 8% increment and then deducting fixed expenses.

So

Sales $12,500 * (1 + 8%) $13,500

Total operating costs $5,700 * (1 + 8%) <u> (6,156) </u>

EBIT $7,344

Interest (150)

Earnings before tax (EBT) $7,194

Taxes (40%) (2,878)

Net income available to common shareholders $4,316

Now 70% would be paid out and the remainder 30% will be added to retained earnings for 2005.

So

30% of Profit after tax = $4,316 * 30% = $1295

This is the share of profit that the company will retain and is the addition to the retained earnings.

6 0

3 years ago

Maintaining good contact in a relationship is also known as the _______ of a relationship.