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Tresset [83]
3 years ago
13

The CHS Company paid $48,000 cash to its landlord on November 1, 2016 for rent covering the six-month period from November 1, 20

16 through April 30, 2017. The books are adjusted only at year-end. Which of the following does not correctly describe the effect on CHS Company's financial statements of the December 31, 2016 adjusting entry?a. Net income decreases $16,000.b. Prepaid rent decreases $16,000.c. Rent expense increases $16,000.d. Stockholders' equity increases $16,000.
Business
1 answer:
goldfiish [28.3K]3 years ago
8 0

Answer:

d. Shareholders equity increases $ 16,000

Explanation:

Two months rent needs to be adjusted. The total payment made was for $ 48,000 for a six month period.  The monthly rent is $ 48,000/6 = $ 8,000

The adjustment amount is thus $ 8,000 * 2 months = $ 16,000

The adjusting entry is:

Rent expense                   Debit              $ 16,000

Prepaid rent                      Credit                                   $ 16,000

So this results in decrease in prepayment and an increase in rent expense. \Due to an increase in expenses, the net income decreases by the same amount.

The only option of increase in shareholders equity, is not valid as a reduction in net income shall result in a decrease in shareholders equity.

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When a cookie is created during a website visit, it is stored: a. on the website's server. b. on the hard drive of the visitor's
Vinvika [58]

Answer:

(B) on the hard drive of the visitor's computer.

Explanation:

Cookies are the information stored on your computer by a website you visit. They are usually small text files, given ID tags that are stored on your computer's browser directory or program data subfolders on the hard drive of your computer.

Cookies are created when you use your browser to visit a website that uses cookies to keep track of your movements within the site, help you resume where you left off, remember your registered login, theme selection, preferences, and other customization functions. This allows the site to present you with information customized to fit your needs.

And by default, the activities of storing and sending cookies are invisible to you. You can however, change your settings to allow you to approve or deny cookie storage requests, delete stored cookies automatically when you close your browser.

4 0
4 years ago
Kendra runs a wholesale distribution center for candy. Each week she receives a truckload of candy from her supplier and unpacks
motikmotik

Answer:

b. Storing

Explanation:

Based on the information being provided in regards to Kendra's situation in running her candy store, it seems that Kendra is adding value by storing inventory. This is the case because customers do not want to purchase large quantities but instead want to purchase single candy cases at a time. Which Kendra is providing that to her customers as well as always having stock available to sell. Thus increasing the value that the customers are getting from Kendra's store.

If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 pe
Dmitry [639]

Answer: The company should not buy the new equipment

Explanation:

For the 1st case:

Revenue = Selling price × Number of units

= 1 × 30000

= $30,000

Total cost = Fixed cost + Variable cost

= 14000 + (0.5 × 30000)

= 14000 + 15000

= $29000

Profit = Revenue - Cost

= $30000 - $29000

= $1000

For the 2nd case:

Revenue = Selling price × Number of units

Revenue = Selling price × Number of units

= 1 × 50000

= $50,000

Total cost = Fixed cost + Variable cost

= 20000 + (0.6 × 50000)

= 20000 + 30000

= $50000

Profit = Revenue - Cost

= $50000 - $50000

= $0

Based on the calculation above, the company should not buy the new equipment as no profit will be made while currently a profit of $1000 is made.

3 0
3 years ago
In a market system, the allocation of scarce goods involves the consideration of multiple choice 1 what must be sacrificed in us
horrorfan [7]

Answer:

what must be sacrificed in using a resource for its next-best use

Explanation:

The market cost would be managed by the clients also it would remember the advantage that is best Also it is remembered in order to support the satisfaction to their own decisions.

So in the case of the market system, the allocation of the scarcity goods would be based on the opportunity cost i.e. to be sacrificed for the next best usage

3 0
3 years ago
The weighted average cost of capital for a firm with debt is the:
tankabanditka [31]

Answer:

Rate of return a firm must earn on its existing assets to maintain the current value of its stock.

Explanation:

The expected return is calculated on cost of capital, and that the cost of capital is weighted average cost of capital.

This is because weighted average cost of capital is the cost of capital which is based on the overall risk and weights of capital in the total capital of the company.

When the net return on total capital is less than weighted average cost of capital it means the company is not able to meet the total cost of capital and accordingly, the company faces some sort of losses.

Therefore, minimum return shall be equal to weighted average cost of capital.

3 0
4 years ago
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