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3 years ago

Select a transaction that effects the accounting equation as follows:________

Business

1 answer:

faltersainse [42]3 years ago

8 0

Answer:

A. The company pays cash toward an account payable.

Decreases an asset and decreases a liability.

B. The company purchases equipment on credit.

Increases an asset and increases a liability.

C. The owner invests cash in the business in exchange for its common stock.

Increases an asset and increases equity.

D. The company pays cash dividends to shareholders.

Decreases an asset and decreases equity.

E. The company purchases supplies for cash.

Increases an asset and decreases an asset.

F. The company provides services for cash.

Increases an asset and decreases an asset.

Explanation:

A. The company pays cash toward an account payable.

Decreases an asset and decreases a liability.

When a company pays cash - an asset is decreasing because cash is a current asset and it is flowing out; while 'account payable' which is a current liability, is being settled - hence reducing

B. The company purchases equipment on credit.

Increases an asset and increases a liability.

When a company purchases equipment on credit - an asset is increasing because equipment is a fixed asset and it is coming in; while 'account payable' which is a current liability, is being generated - hence increasing

C. The owner invests cash in the business in exchange for its common stock.

Increases an asset and increases equity.

When a company owner invests into the business - an asset is increasing because cash is a current asset and it is coming in; while 'Equity' which is common stock, is being generated - hence increasing

D. The company pays cash dividends to shareholders.

Decreases an asset and decreases equity.

When a company pays dividends - an asset is decreasing because cash is a current asset and it is going out; while 'retained earnings' which is part of equity, is being reduced.

E. The company purchases supplies for cash.

Increases an asset and decreases an asset.

When a company purchases supplies on credit - an asset is increasing because 'inventory' is a current asset and it is coming in; while 'cash' which is also an asset, is being paid out - hence decreasing

F. The company provides services for cash.

Increases an asset and decreases an asset.

When a company provides service for cash - an asset is increasing because cash which is a current asset is coming in; while 'cash' which is a current asset, is being paid out at the same time for salaries to employees who rendered the service to the client - hence decreasing

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Schmaltz Herring revenue and costs are forecast to be changed this year from last. But the IRS has announced an increase in the

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Answer:

If Schmaltz pays the same amount of dividends, its payout ratio will:

change.

Explanation:

Since the revenue and costs will change in the current year, with some increase in the corporate income tax rate by the IRS, the earnings per share will also change. If the amount of dividends paid out does not change, the payout ratio will still change as a result of the change in the earnings per share.

Schmaltz's payout ratio shows the relationship between the dividends paid to shareholders and the company's earnings. The simplest way to calculate the payout ratio is to divide the dividend per share by the earnings per share, then multiplied by 100.

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3 years ago

Suppose, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes

Anvisha [2.4K]

Answer:

1. Investigate the invoices that have been send out (sequencing, their details and amounts) and cross check the invoices that have been paid up. Then for invoices paid up verify that date descriptions and amounts have been entered correctly or as purported by the co-worker.

2. The Cash Account is Decreasing after the correction.

3. It is not professional to accepts such special treats from co-workers for helping them in the workplace.

Explanation:

All financial information must be treated with great caution as reckless acts my constitute to fraud and irregularities.

Exercise Professionalism by doing a bit of background check on error and the intent of the worker. Also allow internal controls to take course in terms of authorization privileges to alter transactions.

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4 years ago

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components depa

Leto [7]

Answer:

Way Cool

1. Using ABC, the overhead cost per unit for each product line:

Model 145 Model 212

Overhead cost per unit $534.39 $266.12

2. The total cost per unit for each product line, if the direct labor and direct materials costs per unit are $250 for Model 145 and $170 for Model 212:

Model 145 Model 212

Total cost per unit $784.39 $436.12

3. If the market price for Model 145 is $1,700 and the market price for Model 212 is $300, the profit or loss per unit for each model:

Model 145 Model 212

Profit (loss) per unit $915.61 ($136.12)

Explanation:

a) Data and Calculations:

Process Activity Overhead Cost Driver Quantity

Components Changeover $ 470,000 Number of batches 890

Machining 304,000 Machine hours 8,130

Setups 225,000 Number of setups 120

Total $ 999,000

Finishing

Welding $ 192,000 Welding hours 5,200

Inspecting 235,000 Number of inspections 850

Rework 61,000 Rework orders 220

Total $ 488,000

Support

Purchasing $ 145,000 Purchase orders 543

Providing space 33,000 Number of units 4,620

Providing utilities 65,000 Number of units 4,620

Total $ 243,000

Additional production information concerning its two product lines follows:

Model 145 Model 212 Total

Units produced 1,500 3,120 4,620

Welding hours 2,000 3,200 5,200

Batches 445 445 890

Number of inspections 480 370 850

Machine hours 1,800 4,200 6,000

Setups 60 60 120

Rework orders 160 60 220

Purchase orders 362 181 543

Overhead Rates per Activity Pool:

Components Changeover $ 470,000/890 = $528

Machining 304,000/ 8,130 = $37.39

Setups 225,000/120 = $1,875

Total $ 999,000

Finishing

Welding $ 192,000/5,200 = $36.92

Inspecting 235,000/850 = $276.47

Rework 61,000/220 = $277.27

Total $ 488,000

Support

Purchasing $ 145,000/543 = $267

Providing space 33,000/4,620 = $7.14

Providing utilities 65,000/4,620 = $14.07

Total $ 243,000

Total overheads = $1,730,000

Model 145 Model 212

Units produced 1,500 3,120

Welding hours $73,840 (2,000*$36.92) $118,144 (3,200*$36.92)

Batches 234,960 (445*$528) 234,960 (445*$528)

Number of inspections 132,706 (480*$276.47) 102,294 (370*$276.47)

Machine hours 106,562 (2,850*$37.39) 197,419 (5,280*$37.39)

Setups 112,500 (60*$1,875) 112,500 (60*$1,875)

Rework orders 44,363 (160*$277.27) 16,636 (60*$277.27)

Purchase orders 96,654 (362*$267) 48,327 (181*$267)

Total overhead costs $801,585 $830,280

Units produced 1,500 3,120

Overhead cost per unit $534.39 $266.12

Total production costs:

Model 145 Model 212

Direct costs per unit $250 $170

Total direct costs $375,000 $530,400

Total overhead costs $801,585 $830,280

Total production costs $1,176,585 $1,360,680

Units produced 1,500 3,120

Total cost per unit $784.39 $436.12

Model 145 Model 212

Market price per unit $1,700.00 $300.00

Total cost per unit 784.39 436.12

Profit (loss) per unit $915.61 ($136.12)

6 0

3 years ago

Marketers and customers alike enjoy specialties because they cast doubt on the products offered by competitors. prevent price co

Otrada [13]

Answer:

<h2>The correct answer in this case,would be the fourth option mentioned in the answer choices or create goodwill for the company. </h2>

Explanation:

A specialty offered by any business basically implies creating a high and positive value for the customers on the basis of the customer needs and convenience.
A specialty based business focuses on selling specific products and services instead of wholesale or bulk/large quantity selling and hence,it emphasizes more on product or service specialization.
Royalty based businesses provide better and more convenient shopping or buying experience for the customers including personalized shopping,better customer service,specialized focus on individual customers,consistent and timely post consumption or purchase follow up,obtaining a more detailed and specific product or service related information by the customers and so on.
Therefore,royalty based business can generate positive goodwill and market reputation through providence of a much more specialized and focused customer oriented service.

7 0

4 years ago

A dam is being built that will cost $500,000. The dam will cost $20,000 per year to operate and will require a maintenance expen

liubo4ka [24]

Answer:

The capitalized cost will be "784,592".

Explanation:

The given values are:

Initial cost = $500,000

Annual operating cost = $20,000

Interest, i = 12% i.e., 0.12

Effective Two year interest rate, i₂ = $(1.12)^2 - 1$