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Ratling [72]
3 years ago
13

Pow Corp. accidentally overstated its 2018 ending inventory by $750. Assume that ending 2019 inventory is accurately counted. Th

e error in 2018 will have what effect on Pow Corp.? a. 2018 net income is understated by $750. b. 2018 net income is overstated by $750. c. 2019 net income is understated by $750. d. Both b and c are correct.
Business
1 answer:
sergeinik [125]3 years ago
8 0

Answer:

b. 2018 net income is overstated by $750

Explanation:

As the ending inventory is overstated the COGS will be understated thus, the income was overstate as well. Because the expenses reduced from the sales revenues were lower than correct.

Also we can deduct the same logic considering the accounting equation

Assets = liab + equity

if asssets are 750 higher than it should, then Equiy is higher as well

+750  = +750

Equity is affected for the net income and dividends. Thus, we can also conclude the net income is overstated by 750

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The correct answer is A)  The name of the product, when translated into Greek, has an unintentional meaning.

Explanation:

In business, communication problems can emerge due to a difference in language that prevents the business from communicating appropriately its purpose, name, slogan, and from advertising its products. This mainly occurs if the translation does not reflect the original meaning or there are cultural features that create a barrier.

This situation occurs in "The name of the product when translated into Greek, has an unintentional meaning" because due to the lack of experience of the manager in Greece and the differences in language, she does not know how to communicate in Greek the name of the company, which creates a communicative barrier as Greek customers will not understanding the real meaning of the company.

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3 years ago
Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one
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Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

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= $550,000 - $500,000 - $25000

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Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

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3 years ago
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Answer:

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Explanation:

Given;

Current cost per unit to manufacture = 66,000 units

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Answer:

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