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4 years ago

In a statement of cash flows, which of the following would be classified as an investing activity?

Business

1 answer:

Elanso [62]4 years ago

5 0

Answer:

C. The sale of equipment.

Explanation:

Investing activities: It records those activities that include the long-term asset buying and selling. The buying is a cash outflow while the sale is a cash inflow.

The cash outflow decreases the cash balance whereas cash inflow increases the cash balance. So the buying would be shown in a negative sign while the selling is shown in the positive sign

Hence, the correct option is C.

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At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balan

Bad White [126]

Answer and Explanation:

The computation is shown below:

The amount of the adjusting entry for bad debt expense should be

= $45,000 + $5,400

= $50,400

The journal entry should be

Bad Debt Expense Dr. 50,400

To Allowance for Doubtful Accounts Cr. 50,400

(Being the bad debt expense is recorded)

Accounts Receivable 675,000

Allowance for Doubtful Accounts 45,000

Bad Debt Expense 50,400

Accounts Receivable 675,000

Less: Allowance for Doubtful Accounts (45,000)

Net realizable value of accounts receivable 630,000

4 0

3 years ago

California last summer was devastated by wildfires that have now created mudslides with the winter rain. This winter highway 1 w

arsen [322]

Answer:

This will create shortage and people will sell milk in black market at higher price.

Explanation:

Wildfires and mudslides have closed the highways. This created greater demand and short supply.

The equilibrium price increased to $7.

But the government imposed a price ceiling of $4.

At this binding price ceiling, the quantity demanded is more than quantity supplied.

This high demand would cause the suppliers to sell milk in the black market at a higher price.

6 0

3 years ago

A machine was purchased at a cost of $70,000. The equipment had an estimated useful life of eight years and a residual value of

RoseWind [281]

Answer:

Loss on sale of machinery = $8,000

Explanation:

Under Straight line depreciation method, depreciation is calculated as follows:

Depreciation to be charged per annum over the life of asset is given by the formula: = $\frac{cost\ -\ salvage\ value}{useful\ life}$

Depreciation = ($70,000 - $ 6,000) ÷ 8 years

Depreciation to be charged every year = $8,000

Now, total depreciation charged till the end of 6 years = 6 × $8,000 = $48,000

Book Value at the end of year 6 = $70,000 - $48,000= $22,000

Sale Value of the asset = $ 14,000

Loss on sale = $22,000 - $14,000 = $8,000

7 0

3 years ago

When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the ________ of the inves

Over [174]

Answer:

present value; future value

Explanation:

When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the present value of the investment. This is achieved by discount the future cash flows using the appropriate discounting rate to show the effect of time value of money.

Then, If we express it in terms of dollars in the future, we call it the future value. This is achieved by Compounding the Principle or Present Value using the appropriate compounding rate to show the effect of time value of money

4 0

3 years ago

There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second house

11Alexandr11 [23.1K]

Answer:

regressive

Explanation:

A regressive tax is basically a tax whose rate increases as your income decreases. Generally you do not need to increase the marginal tax rate of lower income levels, all you need to do is have a flat tax that taxes everyone with the same amount. E.g. everyone pays $2,000 as income taxes. $2,000 per person represents 10% of the first household's income, but it only represents 2.7% of the fourth household's income.

On the other hand, progressive taxes increase as the income level of the taxpayers increases.

8 0

3 years ago