Answer:
The answer is "No Effect
".
Explanation:
In the situation wherein the write-off would not affect the 2019 net earnings, the write-off reduces that both debt accounts as well as the benefit counter-asset for similar quantities. Whenever an expenditure was recognized, net revenues were affected, therefore, there will be nothing to write off under the allowance approach, so the response is no effect.
Option C is incorrect when allocating service department costs to operating departments.
<u>Explanation:
</u>
Typically, fixed costs are not assigned to working departments; however, they have to be absorbed by the service. This statement is incorrect in the service dept. Cost to Operating dept.
The reciprocal method assigns the cost of services to operating departments and other departments. The reciprocal costs are identified and the costs are assigned to each other and to services offered by each service department.
For example, if Service Department A requires certain services of Service Department B, the cost allocation system would not include these services. Since these services are not delegated to other departments, some auditors assume that the direct approach is not right.
Answer:
The correct answer is: the ability to produce a good or service at a lower opportunity cost than another.
Explanation:
Comparative advantage implies the ability to produce a good at lower opportunity cost. Opportunity cost is the cost of giving up the alternative.
A nation is considered to be enjoying a comparative advantage in the production of a good if it can produce the good at a relatively lower opportunity cost than other nations.
A nation is said to be specializing in the production of a commodity if it has a comparative advantage in production.
Answer:
See explanation section
Explanation:
Sheridan Company
Statement of Financial Position (Balance Sheet)
As at December 31, 2018
Particulars Amount ($)
Cash $91,900
Accounts receivable xxx,xxx
Less: Bad debt <u> xx,xxx</u>
xxx,xxx
Inventory 136,500
Prepaid Insurance <u> 9,300</u>
Total Current Assets $237,700
Note: If we have accounts receivables and bad debt expense, we can easily get the accurate answer.
Answer:
transportation industry
Explanation:
Based on the information provided within the question it can be said that one such service firm that is not mentioned is the transportation industry. This refers to companies that provide transport to people, taking them from one place to another as a service in exchange for money. This is only one of many service firms that exist.