Simple returns focus on accounting for net operating income, not cash flow. The simple method of revenue focuses on cash flow rather than accounting for net operating income.
A simple rate of return is calculated by subtracting the initial value of the investment from the current value and dividing it by the initial value. To output as%, multiply the result by 100.
Under the simple rate of return method, a dollar you receive 10 years later is considered to be worth the $ 1 you receive today. Therefore, the simple yield method can be misleading if the alternative cash flow patterns under consideration are different.
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The Simple Rate Of Return Focuses On Accounting Net Operating Income Rather Than On Cash Flows.
A) TRUE
B) FALSE
Answer:
a. Insurance expense for the month of march
= ($3,840 / 12 months) * 1 month
= $320 per month
b. Balance in prepaid insurance as of March 31
= ($3,840 / 12 months) *11 months remaining
= $3,520
c. Equipment rent expense for the month of April
= ($23,160 / 24 months) * 1 month
= $965
d. Balance in prepaid equipment rental as of April 30
= Nil ($0) as it is not mentioned that payment has been made, it is only mentioned that two year rental contract has been entered into.
Answer:
The Journal entries are as follows:
(i) On March 1,
Prepaid insurance A/c Dr. $24,600
To cash A/c $24,600
(To record the purchase of insurance in advance)
(ii) On December 31,
Insurance expense A/c Dr. $20,500
To Prepaid insurance $20,500
(To record the insurance expense)
Workings:
Insurance expense:
= $2,050 × 10 months (From March 1 to December 31)
= $20,500
Answer: See explanation
Explanation:
a. Debit: Raw material $12000
Credit: Account payable $11500
Credit: Material price variance $500
(To record material purchase)
b. Debit: Work in process 11600
Credit: Raw material 11200
Credit: Material price variance 400
(To record material issued)
Note:
Material price variance for (a)= 12000 - 11500 = 500
Work in progress = 5800 × 2 = 11600
Material price variance for (b) = 11600 - 11200 = 400
Answer:
He researches, analyzes, and summarizes information about fraud.
