Darcy is 45 years old, single, and a u.s. citizen with a valid social security number. she had $45,000 in wages. during

Inventory at the end of the year is overstated. Which of the following statements correctly states the effect of the error? a. n

vlabodo [156]

Answer:

The answer is stockholders' equity is overstated

Explanation:

When inventories are overstated it reduces the cost of sales because the excess inventory in accounting records means the ending inventory will be higher and cost of sales will be lower.

When ending inventory is overstated, total assets and retained earnings will be overstated. And when retained earnings is overstated, stockholders' equity is also overstated because retained earnings is a line item under stockholders' equity.

7 0

3 years ago

Perfect substitutes A. always have indifference curves with slopes of minus1. B. have horizontal indifference curves. C. always

torisob [31]

Answer:

Option (D) is correct.

Explanation:

Perfect substitute goods are the goods which can be used in place of each other.

Perfect substitutes refers to the goods which are having identical characterstics, features and provide the exactly same level of satisfaction.

The marginal rate of substitution for these perfect substitute goods remains constant which means that the trading of one good for the another good is at a fixed rate.

3 0

4 years ago

The project schedule information section of the project management plan includes ____. a. a list of key deliverables b. an elabo

yulyashka [42]

Answer:

The correct answer is letter "B": an elaborate timetable.

Explanation:

The main objective of creating a project schedule is to measure and control the amount of time it takes to finish every activity in a project. The project strategy must be provided first describing each step that will be taken to accomplish the company goal to then, based on different metrics, determine how much time those activities will last. Eventually, the project schedule will help to find out when the project will be completed.

5 0

3 years ago

The balance sheet of California Clothing reports total equity of $600,000 and $700,000 at the beginning and end of the year, res

kolbaska11 [484]

Answer:

10%

Explanation:

return on equity = net income / average equity = $65,000 / [($600,000 + $700,000) / 2] = $65,000 / $650,000 = 0.1 = 10%

Return on equity (ROE) measures the profitability of a company by comparing the net income generated in the year against the company's equity. The higher the ROE, the more profitable the company is. In this case, each dollar invested generates $0.10 in profit.

5 0

3 years ago

Gordon Chemicals Company acquires a delivery truck at a cost of $39,700 on January 1, 2017. The truck is expected to have a salv

Kipish [7]

Answer:

First Year depreciation is $18,750

Second Year depreciation is $ 9,375

Explanation:

Note that the Method used to provide for Depreciation is Declining Balance Method.

The established rate is used to compute depreciation on the remaining balance after taking account of previous depreciation charges.

Which is the appropriate rate to use?

The question gave us an assumption, "Assuming the declining-balance depreciation rate is double the straight-line rate"

So Working with this Assumption the Calculations are as follows

Straight Line Rate = 1/4×100 = 25%

Therefore Declining Balance Rate = 2×25%=50%

First Year depreciation is = Depreciable Amount ×Diminishing Rate

=($39,700-$2,200) ×50%

= $18,750

Second Year depreciation is = Carrying Amount × Diminishing Rate

=(($39,700-$2,200) - $18,750)×50%

= $ 9,375

Terms:

(1) Depreciable Amount is Cost less Salvage Value

(2)Carrying Amount is Cost less Accumulated depreciation to date

3 0

3 years ago