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3 years ago

A city ordered uniforms with an expected cost of $6,000 for policemen. This amount is encumbered.

Business

1 answer:

Stels [109]3 years ago

3 0

Answer:

Answer is a.

Explanation:

The first journal entry for encumbrances is:

Encumbrances 6,000

Encumbrances outstanding 6,000

After the receipt of the invoice the journal entry should be:

Encumbrances outstanding 6,000

Encumbrances 6,000

Expenditures 5,900

Invoice 5,900

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Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can

ale4655 [162]

Answer:

transfer price 3.31

Explanation:

the minimun transfer price should be equal to the marginal cost:

In this case: variable manufacturing cost + shipping cost.

variable cost 3.1

shipping cos 0.21

marginal price 3.31 = cost of produce an additional unit = transfer price

there is no additional fixed cost so this should be the transfer price.

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2 years ago

"Municipal bonds, or "munis," are bonds issued by states, counties, and cities, in addition to other public agencies such as sch

morpeh [17]

Answer:

1. True

Explanation:

The municipal bonds are called as Munis bonds and are issued by the local government or territory and are used to finance the public projects and include the schools, airports and seaports, and infrastructure-related repair and as of 2011, the values of these bonds is valued at 3.7 trillion dollars.

In general, they are used for the issuing of the municipality related services and they are characterized by taxability, interest rates, liquidity, and security.

The primary reason why theses type of bonds are special to their tax exemptions and are subjected to an alternative minimum amount of tax as an item of preferences.

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2 years ago

Kendall’s Home Decorators believes that the demand for its services will expand greatly because a real-estate developer has just

gtnhenbr [62]

Answer: The managers of Kendall’s Home Decorators are making a projection for the future, also known as a forecast.

Forecasting is know as the technique of predicting future supported on past and present event or data , commonly done by analyzing trends.

Here in this case the managers of Kendall’s Home Decorators are predicting the demand.

Therefore the correct option is (a)

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3 years ago

Machines A and B are mutually exclusive and have the following investment and operating costs. Machine A has a life of 3 years w

olganol [36]

Answer:

$-1081.01

$-2536.89

Explanation:

Equivalent annual cost method is a capital budgeting method used to choose between two projects with an unequal life span

The decision rule is to choose the product with the higher Equivalent annual cost

Equivalent annual annuity method is better for making this decision because if net present value is used, the project with the higher useful life would be chosen. this does not mean it is more profitable

EAA = $\frac{r(NPV)}{1 - \frac{1}{(1+ r)^{n} } }$

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Machine A

Cash flow in year 0 = - $5,000

Cash flow in year 1 = $800

Cash flow in year 2 = $900

Cash flow in year 3 = $1,000

I = 9%

NPV A = -2736.35

Machine B

Cash flow in year 0 = -$6,000

Cash flow in year 1 = $850

Cash flow in year 2 = $900

I = 9%

NPV B = -4462.67

EAA =

(0.09 x -2736.35) / ( 1 - (1.09)^3) = $-1081.01

(0.09 x -4462.67) / ( 1 - (1.09)^2)= $-2536.89

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2 years ago

Zane Enterprises accepts a credit card as payment for $500 of services provided to a customer. The credit card company charges a

sveticcg [70]

Answer:

c) Zane will collect $480 cash from the credit card company.

Explanation:

The charges that Zane has to pay to the credit card company is:

$500 x 4% = $20

--> Total amount that Zane will collect from the credit card company is: $500 - $20 = $480

6 0

3 years ago

Read 2 more answers