Answer:
Be included as a component of income from continuing operations for 20X9
Explanation:
To find out the correct balance of income from continuing operations, we have to add the loss as the loss is added in the income from continuing operations.
Moreover, in this question the golden rule of accounting applies which says:
Debit all losses and expenses and credit all income and gains which apply in the nominal account that record any type of transactions. example - sales account, purchase account, etc.
Answer: b. Appraisal cost
Explanation: Appraisal cost, also known as inspection costs, are those costs incurred by a company, as part of the quality control process, to detect defective products before the products are moved to the market, in order to meet consumers' expectations.
This is done because the losses that will be made when defective products are sold, outweigh the appraisal costs.
Therefore, Sanford Corp. has incurred appraisal cost in buying the new technological systems, knowing that if the quality of the Company's products is not up to consumer standards, the losses that will be incurred will surpass that of the appraisal cost.
Answer:
The $4,060,000 should be added to the net income under the operating activity.
Explanation:
Depreciation: It is the amount which shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, etc.
Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments also.
Moreover, the depreciation amount should be added to the net income amount because depreciation is a non - cash expense.
So, $4,060,000 should be added to the net income under the operating activity.
Answer:
Marketing exchange
Explanation:
A marketing exchange occurs whenever there is an interaction between two or more people to buy and sell goods or services. An exchange therefor occurs when an person or an organisation makes a decision to meet its need or want and he is ready to pay some money or offer commodities.
The marketing theory states that a utility ought to be derived from an exchange, an it is an indication that what you get from trade is more than you trade.
