1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Svet_ta [14]
3 years ago
11

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to s

ettle the vendor’s full payment after two months. Under which section of a balance sheet will this amount be recorded as “accounts payable”?
A.
current assets
B.
current liabilities
C.
long-term liabilities
D.
owners’ equity
Business
2 answers:
andrezito [222]3 years ago
8 0

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. Under "current liabilities"section of balance sheet this account will be recorded as "account payable".

Answer: Option (B) is correct

<u>Explanation:</u>

Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.

Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.

Ivahew [28]3 years ago
8 0

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. In a balance sheet this amount be recorded as “accounts payable” is

A.

current assets

Explanation:

  • Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. In a balance sheet this amount be recorded as “accounts payable” is
  • A.  current assets
  • Current assets shows all the assets of a company that are expected to be  sold, consumed, utilized or exhausted through the standard business  rules and operations.
  • Current assets includes the following entries,
  • cash,
  • cash equivalents,
  • accounts receivable,
  • stock inventory,
  • marketable securities,
  • pre-paid liabilities, and other liquid assets.
You might be interested in
Anka Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. An
katovenus [111]

Answer:

C. LIFO liquidation

Explanation:

Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.

The difference between these two numbers is commonly referred to as LIFO Reserve.

LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.

Third option is the correct option.

LIFO reserve = FIFO inventory cost - LIFO inventory cost

FIFO inventory cost = LIFO inventory cost + LIFO reserve

4 0
3 years ago
Justin Company's budget includes the following credit sales for the current year: September, $40,000; October, $51,000; November
zheka24 [161]

Answer:

$45,350

Explanation:

Follow the Company`s collection history to determine the November Cash Collection.

November Cash Collection :

Collected in month of sale - 15% x $45,000                       $6,750

Collected for 1st month after sale - 60% x $51,000         $30,600

Collected for 2nd month after sale - 20% x $40,000        $8,000

Total                                                                                     $45,350

Therefore,

The cash Justin can expect to collect in November is $45,350

7 0
3 years ago
If an organizational manual exists, a description of the division of work and the position shown on the organization chart will
allsm [11]
If an organizational manual exists, a description of the division of work and the position shown on the organization chart will be given in the manual or will be located on the company's intranet.

A) True
7 0
3 years ago
sales forecasts . multiple select question. should not be used for audit decisions help auditors understand management's strateg
Anna [14]

Sales forecasts <u>help auditors understand </u><u>management's strategy</u>

<u>can be used in valuing </u><u>inventory</u>

<u />

What are sales forecasts?

A sales forecast is an indication of predicted sales revenue. What your business expects to sell during a specific time period is estimated by a sales forecast (like a quarter or year). The most accurate sales projections do this. By providing knowledge of the probable behavior of your most valued clients, sales forecasting aids in achieving this revenue efficiency. In addition to enhancing pricing, advertising, and product development, you may forecast future sales. The ability of your business to predict future revenues across particular time periods in order to better manage resources is one of the benefits of sales forecasting.

To learn more about sales forecast click on the given link:

brainly.com/question/29110387

#SPJ1

4 0
1 year ago
The following units of an inventory item were available for sale during the year. Beginning inventory 10 units at $55 First purc
Sphinxa [80]

Answer:

$1,375

Explanation:

Given the information above, the Ending inventory = Units available - Units sold

Units available = 10 + 25 + 30 + 70 = 80

Units sold = 60

Ending inventory = 80 - 60

Ending inventory = 20

Cost of ending inventory under FIFO

= (15 × $70) + (20 - 15) × $65

= $1,050 + $325

= $1,375

Therefore, the ending inventory cost using FIFO is $1,375

5 0
3 years ago
Other questions:
  • Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance
    6·1 answer
  • A good or service is said to be scarce when:
    15·1 answer
  • Pat starts a business called ValueCentral, the concept takes off, and the company has an IPO and goes public. The company is gro
    11·1 answer
  • Your sister's pet supplies business obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%, wi
    5·1 answer
  • The following three separate situations require adjusting journal entries to prepare financial statements as of April 30. For ea
    13·1 answer
  • The top management of the company asks Earl to make use of a rating scale that will rate the​ employees' actual job behaviors. T
    8·1 answer
  • If the government provides free schooling for all students, an economist would say education is a. a free good, having no cost.
    8·1 answer
  • The sales manager is convinced that a 11% reduction in the selling price, combined with a $71,000 increase in advertising, would
    15·1 answer
  • ANSWER FAST please !!!
    7·1 answer
  • The proposition that increases in the government budget deficit has no effect on aggregate demand is called the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!