Answer:
Correct option is d)
Explanation:
Assuming all other things same as that of last year, with purchase of new asset, depreciation expense will increase, with that net income from operations will decrease, in cash flow statement when such depreciation will be added back then the net income from operations will decrease accordingly, therefore, there will be no impact of increase in depreciation on cash flow from operations.
Further such purchase of new asset will increase the balance of fixed assets in balance sheet and therefore, will only impact on balance sheet.
Thus correct option is d)
Answer: D) A custom built house
Explanation:
Job Order Costing determines the cost of each specific good instead of grouping them all together. When making goods that vary in type, this is the best type of costing method to use as it will take into account the unique cost objects used.
Custom built houses will require cost objects that are different from standadized houses. A specific design will have to be used, non standard material and the like will be used as well. This means that when computing cost, it will have to be specific to the needs of the custom house so it is most probable that Job Order Costing was used.
Answer: $49,000
Explanation:
Total Revenue:
= cash revenue + increase In accounts receivables + decrease in accrued liability
= $72,000 + $4,000 + $1,000
= $77,000
Net income accrual method:
= Total Revenue - cash expenses - depreciation expense - decrease in prepaid expenses
= $77,000 - $21,000 - $5,000 - $2,000
= $49,000
Answer:
D) 38%
Explanation:
The computation of the total return during the most recent year is shown below:
= (Price of stock at the year end 2 - Price of stock at the year end 1) ÷ (Price of stock at the year end 1)
= ($18 - $13) ÷ ($13)
= ($5) ÷ ($13)
= 38.46%
Basically we deduct the price of year end 1 from the price of year 2 and then divide it by price of year end 1 so that the total return could come
