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Svet_ta [14]
2 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]2 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]2 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.
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Economists make assumptions in order to Select one: a. mimic the methodologies employed by other scientists. b. minimize the num
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Answer:

The correct answer would be option D, Focus their thinking on the essence of the problem at hand.

Explanation:

An economist is a person who has expertise or who is an expert in the field of Economics. The Economists make assumptions about the economies to focus their thinking on the essence of the problem they have at the moment. They predict the economy, they analyze the economy, they suggest solutions to the problems concerning the economy on the basis of their experience and the new studies being carried up by them. So for this purpose they make assumptions because they want to clearly analyze the situations and want to see what impact their decision will make on the economy, which give them a clear picture about the possible solutions of the problem they have at hand at the moment.

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3 years ago
Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area loo
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a. $700,000

b. 40% increase

Explanation:

As per the data given in the question,

a)  

Increase in sales = 20%

So last  unit sale

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= 60,000 ÷ 1.2

= 50,000

Previous year operating income  is

= Last unit sales × (Selling price per unit - variable cost per unit) - Fixed expenses

= 50,000 × ($50-$30) - $500,000

= $500,000

Current Net operating income  is

= Current units sales × (Selling price per unit - variable cost per unit) - Fixed expenses

= 60,000 × ($50-$30) - $500,000

= $700,000

b)

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= (Current Net operating income - Previous year operating income) ÷ Previous year operating income

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3 years ago
On June 3, Swifty Company sold to Chester Company merchandise having a sale price of $3,300 with terms of 2/10, n/60, f.o.b. shi
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Answer:

The Journal Entry and their narrations is shown below:-

Explanation:

The Journal entry is shown below:-

a. 1.Accounts Receivable Dr, $3,300

                   To Sales  $3,300

(Being sales is recorded)

Cash Dr, $3,234

Sales Discount Dr,  $66

(3,300 × 2%)

            To Accounts Receivable $3,300

(Being Payment received is recorded)

2. Accounts Receivable Dr, $3,234

=(3,300 × 0.98)

            To Sales $3,234

(Being sales is recorded)

Cash Dr, $3,234    

        To Accounts Receivable $3,234  

(Being payment received is recorded)

b. Cash Dr, $3,300  

       To Accounts Receivable $3,234  

        To Sales Discounts Forfeited 66

(Being payment received is recorded)

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Answer:

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Explanation:

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8 0
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