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Elis [28]
2 years ago
13

A company uses cash basis accounting. Their income statement for the year shows sales of $600,000 and net operating income of $2

00,000. Because similar companies report on an accrual basis, the business appraiser adjusts the statements to the accrual basis for comparison. He has accounts receivable of $120,000 and accounts payable of $40,000. Based on this information, the adjusted statements show sales of:
Business
1 answer:
Schach [20]2 years ago
4 0

Answer:

$720,000

Explanation:

Data provided in the question:

Sales reported for the year = $600,000

Net operating income = $200,000

Accounts receivable = $120,000

Accounts payable = $40,000

Now,

The adjusted statements show sales of

= Sales reported for the year + Accounts receivable

or

= $600,000 + $200,000

or

= $720,000

hence,

The adjusted statements show sales of $720,000

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Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects p
umka2103 [35]

Answer:

C) reciprocity

Explanation:

Based on the information provided within the question it can be said that this scenario is an example of reciprocity. This term refers to exchanging one thing for another in which both parties benefit in their own unique way. Which is the case since Bob buys equipment from Allied Tools which generates revenue for Allied Tools thus benefiting them, and Allied Tools hires Bob periodically which generates revenue for Bob thus benefiting him.

7 0
3 years ago
A common step in the testing for accounts payable is to test subsequent disbursements for improper/proper inclusion/exclusion in
galben [10]

Answer:

1. When searching for unrecorded liabilities, the auditors consider transactions recorded <u>after</u> year end.

<em>Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period. </em>

2. Accounts payable <u>confirmation</u> can be mailed to vendors from whom substantial purchases have been made.

<em>As a way to keep a document trail, creditors from whom substantial goods were bought from can be mailed a confirmation. </em>

3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider <u>ratios</u>.

<em>Ratios such as the Payables turnover can be used to evaluate the reasonableness of Accounts payable. </em>

4. When auditors find unrecorded liabilities, before adjusting they must consider <u>materiality</u>.

<em> They must consider if the adjustment is material or significant enough to record. </em>

5 Auditiors need to consider <u>shipping terms</u> terms for determining ownership and whether a liability should be recorded.

<em>Shipping terms need to be considered because they can tell who owns goods in transit and therefore if a liability is needed for them. Shipping terms such as FOB Shipping point mean that the business incurs the liability as soon as the seller ships the goods. </em>

6 0
2 years ago
Katrina receives an offer to buy a box of candy through the mail each month. The letter says that she will begin receiving candy
Katarina [22]

Answer:D. Does not constitute an acceptance of the offer.

Explanation:A Contract is a binding agreement between two persons with sound mind, contract agreements are contestable in the Courts,but for it to be acceptable as an evidence in the court of law certain prescribed conditions must be met.

Their was no agreement between Katrina and the company candy company, because her consent was not sort by the Company,the company should have sort her consent and if possible get her to sign certain agreement that will prevent Indiscriminate violation of the terms of agreement.

3 0
3 years ago
The Digital Millennium Copyright Act, signed in 1998, Multiple Choice allows anyone with access to a computer to publish origina
Rina8888 [55]

The purpose of the Digital Millennium Copyright Act is to improve protection of copyrighted digital products.

<h3>What is the Digital Millennium Copyright Act?</h3>

It is an Act by the U.S. Congress that aims to make it harder to engage in using copyrighted materials without authorization.

It does this by making it illegal to produce technology or devices that help people use copyrighted materials without permission.

In conclusion, option D is correct.

Find out more on copyrights at brainly.com/question/357686.

5 0
2 years ago
You own 230 shares of stock in Green Mild Chili Peppers, Inc., that currently sell for $50.70 per share. The company has announc
Arturiano [62]

Answer:

This equals $12,256.70 (230 x $50.70 + 230 x $2.59)

Explanation:

The value of the portfolio on May 3 is the sum of the market value of the shares plus the sum of the returns in form of dividends to be received.

This value adds the weight of the investment obtained by multiplying the total shares held with its market price to the expected dividend returns on the given date.

6 0
3 years ago
Read 2 more answers
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