Answer:
23.08%
Explanation:
The computation of the debt ratio is shown below:
Debt amount
= 2 million × 0.90
= 1.80 million
And,
Equity amount
= 2 million × 3
= 6 million
Now
debt ratio = debt amount ÷ (amount of debt + amount of equity)
= 1.80 million ÷ ( 6 million + 1.80 million)
= 23.08%
Cost Principle,
<span>requires that assets be recorded at the cash amount (or its equivalent) at the time that an asset is acquired.</span>
Answer:
Contract manufacturing.
Explanation:
A domestic firm may decide to contract for the production of its goods by established foreign manufacturer. Such private-label manufacturing by a foreign company is called contract manufacturing.
Contract manufacturing involves the process of outsourcing a company's manufacturing business, such that a foreign company engages in the production of a private-label product which are then primarily marketed or distributed by a domestic company under its own brand name.
This ultimately implies that, it is a manufacturing process which involves the production of goods by a company under the brand name of another company.
Answer:
Cash account balance $5,680
- bank service fees ($47)
- NSF check ($190)
+ customer's note receivable $560
<u>+ interest earned $66 </u>
adjusted cash account balance $6,069
Dr Bank fees expense 47
Cr Cash 47
Dr Accounts receivable 190
Cr Cash 190
Dr Cash 560
Cr Notes receivable 560
Dr Cash 66
Cr Interest revenue 66