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3 years ago

LO 7.1Which of the following is true in a bottom-up budgeting approach?

Business

1 answer:

Sedbober [7]3 years ago

6 0

Answer:

The correct answer is letter "D": Departments determine their needs and relate them to the overall goals.

Explanation:

The bottom-up budgeting approach consists in giving each department within a firm the power of setting and controlling their budget according to the projects the department intends to develop that matches with the ultimate goal of the organization as a whole. It might be beneficial because each department is likely to come up with a budget that adjusts better to their needs but it could represent a headache for the company when it comes to racking each expense for each area.

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Shanna Engel started up a new nonprofit organization in 2013 named Concern for Animal Shelter and Habitats (CASH). The organizat

lesya [120]

Answer:

Net Assets = Total Liabilities - Total Assets

Transaction # 1

Cash comes under Permanantly Restricted Net Assets

Hence -

Net Assets = $50,000 - $50,000 = $0

Transaction # 2

As there was no transaction took place hence nothing to be reported.

Transaction # 3

Inventory comes under supply & its temporarily restricted net assets

Hence

Net Assets = $1750 - $1750 = $0

Transaction # 4

Advertising comes under Permanently Restricted Net Assets

Hence

Net Assets = $0 - (-$5000) = $0 + $5000 = $5000

Transaction # 5

Office Equipments comes under Temporarily Restricted Net Assets

Hence

Net Assets = Total Liabilites - Total Assets

= $ 5000 - [ - $5000 + $10000 ]

= $ 5000 - $5000 = $0

Hence ending balance is

Unrestricted Net Asstes = $0

Temporarily Restricted Net Asstes = $0

Permanently Restrcited Net Asstes = $5000

Explanation:

See attached file for table

8 0

3 years ago

Sandra Sousa, Registered Dietician Trial Balance July 31, 2018 Balance Account Title Debit Credit Cash 33000 Accounts Receivable

kirza4 [7]

Answer:

Requirement 1. Prepare the income statement for the month ended July 31, 2018.

Sandra Sousa, Registered Dietitian

Income Statement

For the Month Ended July 31, 2018

Service Revenue $11,258

Salaries Expense -$1,500

Rent Expense -$1,200

Utilities Expense -$350

Net income $8,208

Requirement 2. Prepare the statement of owners equity for the month ended July 31, 2018.

Sandra Sousa, Registered Dietitian

Statement of Owner's Equity

For the Month Ended July 31, 2018

Sousa, Capital balance July 1, 2018 $22,000

Investment during month $0

Net income $8,208

subtotal $30,208

Withdrawals during the month -$2,000

Sousa, Capital balance July 31, 2018 $28,208

Requirement 3. Prepare the balance sheet &s of July 31, 2018.

Sandra Sousa, Registered Dietitian

Balance Sheet

For the Month Ended July 31, 2018

Assets:

Cash $33,000

Accounts Receivable $9,600

Office Supplies $2,200

Prepaid Insurance $2,800

Equipment $18,000

Total assets $65,600

Liabilities and equity:

Accounts Payable $3,100

Unearned Revenue $292

Notes Payable $34,000

Sousa, Capital $22,000

Retained earnings $6,208

Total liabilities and equity $65,600

Requirement 4. Calculate the debt ratio as of July 31, 2018.

debt ratio = liabilities / assets = $65,600 / $37,392 = 175.44%

debt to equity ratio = liabilities / equity = $37,392 / $28,208 = 132.56%

7 0

3 years ago

Who likes anime?!!!!!!!

SIZIF [17.4K]

Answer: my friend

Explanation:

8 0

3 years ago

Read 2 more answers

Mr. and Mrs. Alvarez paid $130,000 for their home 30 years ago. They recently sold this home and moved into a rented apartment.

amid [387]

The tax consequences faced by Mr. and Mrs Alvarez for the sale of their home are as follows:

a. They have a realized loss of $5,000 for situation A.

b. They have a realized gain of $320,000 for situation B.

c. They have a realized gain of $720,000 for situation C.

Data and Calculations:

Cost of the home 30 years ago =$130,000

a. Realized capital loss = $5,000 ($130,000 - $125,000)

b. Realized capital gain =$320,000 ($450,000 - $130,000)

c. Realized capital gain = $720,000 ($850,000 - $130,000)

Thus, Mr. and Mrs. Alvarez can also claim the full $500,000 exemptions to reduce their capital gain tax burdens in the three situations since they inhabited the home for more than two years. However, their exemptions are limited to the net gain.

Learn more: brainly.com/question/17005177

5 0

2 years ago

A firm has issued 10 percent preferred stock, which sold for $100 per share par value. The cost of issuing and selling the sto

rusak2 [61]

Answer:

The cost of preferred stock is 10.2%

Explanation:

The actual amount realized from issuing the preferred of $100 per share par value is the par value less cost of issuing and selling stock of $2 per share, in other words,$98($100-$2) was realized per share from the issuance.

Having known the net amount realized, the cost of preferred stock can be calculated as follows:

cost of preferred stock =return on preferred stock/net amount realized

return is 10% of $100(par value), i.e $10 per share

cost of preferred stock =$10/$98=10.2%

Note that preferred is not tax deductible like debt financing , hence the rate of tax given is not considered in determining the cost of preferred stock.

8 0

3 years ago