Answer:
Explanation:
The acquired stock investment is recorded under debit and cash paid is recorded as credit as follows
ACCOUNT DEBIT CREDIT
1. Stock Investment $37800
2. Cash $37800
Answer:
Option A, “the substitution effect dominates the income effect” is correct.
Explanation:
If the real wage increases then the opportunity cost for leisure will also increase. Therefore, an increase in real wages and a rise in the opportunity cost of leisure induce labor to supply more workforce or labor force. This is known as the substitution effect. Moreover, when this substitution effect is greater than the income effect then the supply curve for labor is upward sloping.
Answer:
$105, 700
Explanation:
The cause of the difference between the Variable Costing Net Operating Income and Absorption Costing Net Operating Income is because of fixed costs absorbed in inventory using the absorption costing method.
We need to reconcile the Variable Costing Net Operating Income to Absorption Costing Net Operating Income.
<u>Reconciling the Variable Costing Net Operating Income to Absorption Costing Net Operating Income</u>
Variable costing net operating income $111,700
Fixed costs in Inventory decrease (3,000 × $2) ($6,000)
Absorption Costing Net Operating Income $105,700
Conclusion :
The absorption costing net operating income last year was $105, 700
Answer:
The correct answer is B
Explanation:
The checks which are there on the accuracy of the statements are:
1. The corporation needed to hire or require the neutral party, which is known as the auditor in order to check the annual financial statements of the company, and also ensures that the financial statements are to prepared as per GAAP (generally accepted accounting principles). It should also offer the evidence to support the information reliability.
2. The public companies need to use a common or general set of rules and the standard format while making the reports.
3. The role of auditor is to review the financial statements and in addition Sarbanes-Oxley Act requires the CFO as well as CEO to attest personally to the accuracy of the financial statements.
Answer:
$13,500
Explanation:
The computation of the ending balance in the allowance for doubtful accounts is shown below:
= Unadjusted credit balance of allowance for doubtful accounts + net credit sales × estimated bad debts losses percentage
= $3,300 + $170,000 × 6%
= $3,300 + $10,200
= $13,500
Basically we applied the above formula to find out the ending balance in the allowance for doubtful accounts