All categories

3 years ago

Which of the following statements about materials is false?

Business

1 answer:

weqwewe [10]3 years ago

5 0

Answer:

The correct answer is B

Explanation:

Purchase is the term which is defined as the bought or purchase of raw material that is necessary or required for the business in order to create or manufacture goods or services. So, that the product could be presented into the market for sale and the business could make profit from the sale of product.

So, the statement is false as the acquisition of material is charged to the purchase account.

You might be interested in

On December 31, 2019, Coolwear, Inc. had a balance in its supplies account of $48,400. During 2020, $86,000 was paid for new sup

Luden [163]

Answer:

$92,400

Explanation:

Supplies expense for 2020 would be calculated as;

= Ending balance in supplies account on December 31, 2019 + Payment for new supplies in 2020 - Balance in supplies account at the end of year 2020

Given that ;

Ending balance in supplies account = $48,400

Payment for new supplies = $86,000

Balance in supplies account at the end of year 2020 = $42,000

Therefore,

Supplies expense for 2020

= $48,400 + $86,000 - $42,000

= $92,400

6 0

3 years ago

Interest on a Note Payable is most appropriately accrued:_____________

Thepotemich [5.8K]

Answer: Interest on a Note Payable is most appropriately accrued: "B. as of the end of each accounting period during which the note is a liability.".

Explanation: As long as the Note Payable remains a liability and has not yet reached its due date, according to the accrual principle, at the end of each accounting period the accrued interest must be recognized, and when the Note payable reaches its expiration it must remain with balance 0 the interest not accrued account.

8 0

3 years ago

Your grandmother has been putting $1,000 into a savings account on every birthday since your first (that is, when you turned one

lukranit [14]

Answer:

The amount in the account on the 18th birthday = $ 25,645.41

Explanation:

The investment can be described as an ordinary annuity. An ordinary annuity is a series of equal periodic cash flows that occur for a certain number of years

The amount the invest will accrue principal plus interest is known as the future value of the annuity

It is determined as follows:

FV = A × ( (1+r)^n -1 ) / r

FV - ?, A = 1000. r - 4%- 0.04, n - 18

FV = 1,000× ( ( (1.04)^(18) - 1 )/ 0.04

= 1,000 × 25.64541288

= $ 25,645.41

The amount in the account on the 18th birthday = $ 25,645.41

5 0

3 years ago

2. If a company complies with government regulations, it incurs A. reputation costs. B. court costs. C. implementation costs. D.

Ede4ka [16]

If a company complies with government regulations, it incurs implementation costs. When a company decides to agree and follow new regulations, it will have to implement them into their organization. By implementing them, they are making changes within their organizations processes and therefor having costs associated with the changes.

3 0

3 years ago

If a firm has retained earnings of $2.7 million, a common shares account of $4.7 million, and additional paid-in capital of $9.4

kodGreya [7K]

Answer:

Change in retained earnings = $1.02 million (Decrease)

Change in common shares account = $5.17 million (Increase)

Change in additional paid-in capital = $10.61 million (Increase)

Explanation:

Given:

Retained earnings = $2.7 million

Common shares account = $4.7 million

Additional paid-in capital = $9.4 million

Stock dividend = 10%

Find:

Changes in account.

Computation:

1. Change in retained earnings

Change in retained earnings = Retained earnings - (Retained earnings - Common shares account - Additional paid-in capital)Stock dividend

Change in retained earnings = $2.7 million - ($2.7 million - $4.7 million - $9.4 million)10%

Change in retained earnings = $2.7 million - 1.68 million

Change in retained earnings = $1.02 million (Decrease)

2. Change in common shares account

Change in common shares account = Common shares account (1+Stock dividend)

Change in common shares account = $4.7 million (1+10%)

Change in common shares account = $5.17 million (Increase)

3. Change in additional paid-in capital

Change in additional paid-in capital = Additional paid-in capital + (Additional paid-in capital + Retained earnings)Stock dividend

Change in additional paid-in capital = $9.4 million + ($9.4 million + $2.7 million)10%

Change in additional paid-in capital = $9.4 million + 1.21 million

Change in additional paid-in capital = $10.61 million (Increase)

3 0

3 years ago