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forsale [732]
3 years ago
13

On December 31, Year 4, Deal, Inc., failed to accrue the December Year 4 sales salaries that were payable on January 6, Year 5.

What is the effect of the failure to accrue sales salaries on working capital and cash flows from operating activities in Deal’s Year 4 financial statements?
Business
1 answer:
Lesechka [4]3 years ago
5 0

Answer:

Deal, Inc. working capital will be overstated while there will be a nil net effect on cash flows from operating activities.

Explanation:

The working capital of an entity is the difference between the entity's current asset and current liabilities at a given time or period. The operating activities of the cash flow statement is where the net income and changes in current liabilities are considered in the cash flow statement.

As such, when a company fails to accrue for sales salaries On December 31, Year 4, and the salaries are payable on January 6, Year 5, the current liabilities of the company would be understated and as such, it's working capital will be overstated.

Also, the net income will be understated as the corresponding entry in the accrual for sales salaries is an expense. Also, the ending balance of accrued sales salaries will be understated result in a nil effect on the operating activities of the cash flow.

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The following information was collected on work Center 40: 400 hours scheduled; 30 hours lost due to absenteeism; 20 hours lost
devlian [24]

Answer:

75% is the work center utilization

Explanation:

Mathematically;

Utilization = (Actual Output/Design capacity)*100

From the question;

Actual output = 300

Design capacity = 400

Substituting these values in the equation, we have:

= (300/400)*100

= 0.75*100

= 75%

5 0
3 years ago
What is the term for the business trend that seeks to simplify and integrate all forms of communication?
Goryan [66]
<span>Unified Communications is the term for the business trend that seeks to simplify and integrate all forms of communication. It's an evolving set of technologies that automate and unify through reduced latency, flow management, and elimination of device and media dependencies.</span>
5 0
3 years ago
Why is compounding interest monthly better than yearly ?
dalvyx [7]

Answer:

More interest payments on yearly computing.

Explanation:

It is generally said that if you can get monthly annual payments compared to yearly payments take it without a thought. This statement explains a lot; normally month payments are not available, but in some case they are. In annual payments, 12 months are compounded that is why it is higher rate compared to monthly. So, monthly payments are preferred

6 0
3 years ago
A random sample of 160 households is selected to estimate the mean amount spent on electric service. A 95% confidence interval w
Yuri [45]

Answer:

Option D. We are 95% confident that the mean amount spent on electric service among the 160 households is between $151 and $216.

Explanation:

A confidence interval is a range of values, derived from the sample statistics, which may include the value of an unknown population parameter.

A 95% confidence interval indicates that between 152 of 160 samples (95%) of the same population will produce confidence intervals that will contain the population parameter.

It also means that we have a 95% confidence that the average (average amount) is among the resulting amounts obtained.

Logically, option "D" is missing the final part. This would be: D. We are 95% confident that the mean amount spent on electric service among the 160 households is between $ 15.

This is the only true option, since the test is based on a sample of only 160 households, the entire population of households cannot be included.

Hence, the correct option is:

Option D. We are 95% confident that the mean amount spent on electric service among the 160 households is between $151 and $216.

7 0
3 years ago
Knowledge Check 01 On March 1, a designer received a check for $7,500 from a customer for services to be provided after the cust
Yakvenalex [24]

Answer:

              The Designer Journal Entry

Date         General Journal                 Debit            Credit

July 31      Unearned Revenue            $7,500  

                Design Services Revenue                     $7,500

4 0
3 years ago
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