Answer:
B. $214,000
Explanation:
The insurance premium paid for a 3 year period should not have been expensed out rightly but recognized as expense through periodic amortization spread over the entire period.
As such, the amount that should have been expensed in 2011 for insurance premium is
= 1/3 × $30,000
= $10,000
Recognizing an expense of $10,000 rather than $30,000 would have resulted in an increase in the tax expense by
= 70% × ($30,000 - $10,000)
= $14,000
As such, the retained earnings would have been
= $200,000 + $14,000
= $214,000
The overstatement of an expense would have resulted in an understatement of net income and thus and understatement of the retained earnings.
Answer: Option (c) is correct.
Explanation:
Option (c) is not a disadvantage of a divisional type of organizational structure. All the other options are the disadvantages of a divisional organizational structure.
The divisional structure has drawbacks, including conceivably scattering specialized ability and skill or fostering unfortunate competitions among divisions. The divisional structure likewise may build costs by requiring useful pros and better qualified administrators for every division. Additionally, on the grounds that there is an overemphasis on divisional as opposed to organizational objectives, the divisional structure may bring about copying assets and endeavors -, for example, staff administrations, offices and work force - crosswise over divisions.
Answer:
Choice A would be the right response to either the following statement.
Explanation:
- This theory seems to be a hypothesis that implies that shareholders will seek a higher rate of return as well as premiums on high-term securities with significantly increased risk maturity since, if all other considerations are similar, investors choose cash and perhaps other extremely liquid assets.
- Even if there is an excess of capital, the inflation rate would have been over stability, as well as the amount of money needed would have been too increasing for stability.
The other choices are not relevant to the situation in question. So choice A is the right one.
<span>Well-known fast food franchises usually set up contractual distribution systems, where individual franchise owners participate in channel cooperation through legal agreements.
A contractual distribution system is where different people of the organization work together through legal agreements to achieve the same goal. Overall, the company wants each smaller branch to succeed but they legally bound to the franchiser. </span>
Answer:
Explanation:
journal entry will Jenson use to correct the error
Date Account Titles And Explanation Debit Credit
Computer $400,000
Accumulated depreciation ($100,000 × 2 years) $200,000
Retained earnings ($400,000 - $200,000) $200,000
Annual depreciation = (Cost - Salvage Value) / 4
= ($400,000 - 0) / 4
= $100,000
