Answer: Option (A). The total liabilities will be overstated.
Explanation: Total liabilities are the aggregate debt and financial obligations owed by a business to individuals and organizations at any specific period of time. Total liabilities are reported on a company's balance sheet and are a component of the general accounting equation. In this scenario, Assuming the company initially recorded a liability, then the total liabilities will be overstated.
I believe that the answer is D. That he should become knowledgeable about smart ways to save and about car loans
Answer:
A. have permission from the government.
B. face a downward-sloping demand curve.
C. set price equal to marginal cost.
D. be sure the price-marginal cost ratio is the same for all its submarkets.
Explanation:
Answer:
Dr Warranty Expense 7,400
Cr Estimated Warranty Liability 7,400
Explanation:
Based on the information given we were told that the company estimated that the warranty expense will be 4% of sales in which the sales for the current period was the amount of $185,000. Therefore the current period's Journal entry to record the warranty expense is:
Dr Warranty Expense 7,400
Cr Estimated Warranty Liability 7,400
(185,000 x 0.04 = 7,400)
Answer:
Correct option is C
<u>Overall operating income will decrease by $25,000.</u>
Explanation:
Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3
Sum of sales ratio = 2+3 = 5
Common fixed cost:
Product 1 = 2/5×46,000 = $18,400
Product 2 = 3/5×46,000 = $27,600
Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000
Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)