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topjm [15]
3 years ago
7

Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.

00 cash. Barker sold one inventory item for $30.00 cash. Based on this information alone, without considering the effect of income tax,:_________
A. cash flow from operating activities is $11.00 assuming a weighted average cost flow.
B. cash flow from operating activities is $12.00 assuming a FIFO cost flow.
C. cash flow from operating activities is $10.00 assuming a LIFO cost flow.
D. the amount of cash flow from operating activities is not affected by the cost flow method.
Business
1 answer:
Virty [35]3 years ago
8 0

Answer:

The correct answer is D

Explanation:

Cash flow method is the method where the costs or the expenses are moved or shifted from the starting to the end of the firm. The flow of expenses does not apply to the inventory but also involve the other factors in the extra processes to which the cost is attached.

So, the baker purchased the inventory items at different prices and then the sold the one inventory item at profit, so the amount of the cash flow from the operating activities will not affected through the method of cash flow.

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Worthington Chandler Company purchased equipment for $12,000. Sales tax on the purchase was $800. Other costs incurred were frei
insens350 [35]

Answer:

d. $13,575

Explanation:

The cost of the equipment includes all the cost incurred to bring the equipment to a state where it becomes available for use.

These costs are the cost of the equipment, sales tax, freight, repairs during installation and installation cost.

Therefore,

Cost of the equipment = $12,000 + $800 + $200 + $350 + $225

                                       = $13,575

The right option is d. $13,575.

3 0
3 years ago
Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions: (If an amou
lakkis [162]

Answer:

Journal entries

Explanation:

a. Cash $25,000

            To Sales $25,000

(Being the sale is recorded)

Costs of Goods Sold $17,500

          To  Inventory $17,500

(Being the cost is recorded)

B.  Accounts Receivable $98,000

             To  Sales $98,000

(Being the sales is recorded)

Costs of Goods Sold $58,800

           To inventory $58,800

(Being the cost is recorded)

C.   Accounts Receivable $475,000

             To  Sales $475,000

(Being the sales is recorded)

Costs of Goods Sold $280,000

           To inventory $280,000

(Being the cost is recorded)

D.  Accounts Receivable $63,000

             To  Sales $63,000

(Being the sales is recorded)

Costs of Goods Sold $39,000

           To inventory $39,000

(Being the cost is recorded)

E.  Cash $524,550

    Credit card Expense $13,450

               To Accounts Receivable $538,000

(Being the cash is recorded)

 Sales $661,000

            To Income Summary $661,000

(Being the closing is recorded)

Income summary $408,750

         To Costs of Goods Sold $ 395,300

          To Credit Card Expense $ 13,450

(Being the credit card expense and the cost of goods sold closing is recorded)

Income Summary $252,250

   To  Retained Earnings $252,250                

(Being the transfer is recorded)

5 0
3 years ago
Identify the accounting assumption or principle that is described below. (a) Belief that a company will remain in operation for
Leviafan [203]

Answer:

(a) Belief that a company will remain in operation for the foreseeable future.

Accounting assumption or principle: Going concern assumption

(b) Indicates that personal and business record-keeping should be separately maintained.

Accounting assumption or principle: Economic entity assumption

(c) Only those items that can be expressed in money are included in the accounting records.

Accounting assumption or principle: Monetary unit assumption

(d) Separates financial information into time periods for reporting purposes.

Accounting assumption or principle: Periodicity assumption

(e) Measurement basis used when a reliable estimate of fair value is not available.

Accounting assumption or principle: Historical cost principle

(f) Dictates that companies should report all circumstances and events that make a difference to financial statement users.

Accounting assumption or principle: Full disclosure principle

4 0
3 years ago
Generally speaking, a narrow span of management implies that the height of the organization will be ____; a wide span of managem
Pani-rosa [81]
<span>a narrow span of management implies that the height of the organization will be long; a wide span of management implies that the height of the organization will be short.

This is because in a narrow span of management, less people work under each manager and therefore, there will be more levels of hierarchy making the height of the organization longer and the vice versa applies.
</span>
6 0
3 years ago
Who can help me? It will be greatly appreciated.
Salsk061 [2.6K]
Hello!

I believe the correct answer is: Consumer Market.
(Confirmed by three resources).

I really hope this helped you out! :)
5 0
3 years ago
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