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3 years ago

When a business does not generate enough revenue to cover salaries, rent, and other expenses, it incurs a _____.

Business

1 answer:

STALIN [3.7K]3 years ago

5 0

Answer:

The correct answer is: Net Loss.

Explanation:

A Net Loss or Net Operating Loss (NOL) occurs when the firm's expenditures are higher than its revenue. Net losses are the results of different factors such as inefficient employees, competition or unexpected market conditions (war). If a company reports net losses, it does not necessarily imply it will file for bankruptcy since there are other sources from where the company can hold like loans.

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Using normal costing, which of the following is false about actual overhead?Select one:a. It is separated into many smaller acco

Natasha2012 [34]

Answer:

d. Actual overhead is recorded to the overhead control account during the period.

Explanation:

Actual overhead -

It is the indirect cost of the factory which have been incurred .

The example of actual overhead costs are as follows -

Factory depreciation , Equipment maintenance , Factory rent , Production supplies , Factory property taxes , Production supervisor salaries

hence , from the given options , the false statement is ( d ) .

5 0

4 years ago

A company uses accrual-basis accounting. Shortly before the end of the current year, the company earned $1,000 by providing serv

Mars2501 [29]

Answer:

Balance sheet:

Assets (account receivable) is understated by 1,000

Equity(Retained Earnigns)is understated by 1,000

Net Income:

Sales revenue is understated by 1,000

Cash flow: no effect.

Explanation:

as this transaction do not involve cash the cash flow will have no effect.

Now the blanace sheet will have less assets and equity

as the account receivable is understate and the revenues which increase the equity also is understated by 1,000

On the net income statement the sales revenue will not be correct an so, it will be understated as well.

4 0

3 years ago

If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sev

Scilla [17]

Answer:

Therefore, the income elasticity of demand is 0.83, meaning that hotel rooms at the Triple Sevens are normal goods and necessities.

Explanation:

Note: This question is not complete as some data in it are missing. The complete question is therefore provided before answering the question as follows:

If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens rises from 300 rooms per night to 350 rooms per night. Therefore, the income elasticity of demand is __________, meaning that hotel rooms at the Triple Sevens are__________.

The explanation of the answer is now provided as follows:

Percentage change in income = 20%

Percentage change in quantity of rooms demanded = ((350 - 300) / 300) * 100 = 16.67%

Income elasticity of demand = Percentage change in quantity of rooms demanded / Percentage change in income = 16.67% / 20% = 0.83

Since the income elasticity of demand is positive but less than one, this implies that hotel rooms at the Triple Sevens are normal goods and necessities.

Therefore, the income elasticity of demand is 0.83, meaning that hotel rooms at the Triple Sevens are normal goods and necessities.

3 0

3 years ago

Here are selected data for Wilson Company: Estimated manufacturing overhead $ 247 comma 760$247,760 Factory utilities $30,200

kiruha [24]

Answer:

Allocated overhead= $254,880

Explanation:

Giving the following information:

Estimated manufacturing overhead $247,760

Factory utilities $30,200

Estimated labor hours 35,000

Indirect labor $22,400

Actual direct labor hours 36,000

Sales commissions $53,700

Estimated direct labor cost $326,000

Factory rent $47,700

Actual direct labor cost $ 320400

Factory property taxes $28,100

Factory depreciation $65,400

Indirect materials $33,000

First, we need to calculate the manufacturing overhead rate:

manufacturing overhead rate= total estimated manufacturing overhead for the period/ total amount of allocation base

manufacturing overhead rate= 247760/35000= $7.08 per direct labor hour

Now, we can determine the allocated overhead

Allocated overhead= manufacturing overhead rate* actual hours= 7.08*36000= $254,880

3 0

3 years ago

"this summer, college student pat is planning on selling kites at panama city beach. he has found some suppliers and has preorde

damaskus [11]

Sponsor? He is selling the suppliers’ goods after all.

6 0

3 years ago