<span> The $500 earned by Maxwell plumbing services is its revenue.
</span><span>Revenue is term used in economics to describe the the income that a business has from its business activities. Business activities can be sale of goods or services. In this case Maxwell sales plumbing services. Completing a job for Smith company has brought income to the Maxwell of $500, so this is the revenue.</span>
Answer:
$10,000
Explanation:
Data given in the question
Cash flow produced = $1,000 per year
Required rate of return on investment = 10%
So the most he or she willing to pay amount is
= Cash flow produced ÷ Required rate of return on investment
= $1,000 ÷ 10%
= $10,000
By dividing the cash flow produced with the required rate of return on investment we can get the willing to pay amount
Answer:
$6,130
Explanation :
The adjusted cash balance can be determined by doing the following steps
- Prepare an updated Cash Book to update the Cash Book Balance and,
- Prepare a Bank Reconciliation Statement to check the accuracy of the new Cash Book Balance
<u>Step 1 : Updated Cash Book</u>
Cash Book (Bank columns only)
Debit :
Unadjusted Balance as at April 30 $ 6,210
Credit Transfers $ 640
Total $6,850
Credit:
Bank charges $ 110
Dishonored checks $ 610
Adjusted Balance (Balancing figure) $6,130
Total $6,850
Step 2 : Bank Reconciliation Statement
Bank Reconciliation Statement as at April 30
Balance as per Cash Book (updated) $6,130
Less Outstanding Lodgements ($ 1,430)
Add Unpresented Checks $ 750
Balance as per Bank Statement $5,450
Answer:
given statement is false
Explanation:
given statement is false
we know that Inventory Turnover Ratio that is express as here
Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory ........................1
so when any company buy inventory in large quantity, it mean average inventory will be more high
so if average inventory will be higher then the inventory turnover that will be lower due to the fact that is denominator higher
so given statement is false
Answer:
Explanation:
The journal entries are shown below:
On September 9
Petty cash A/c Dr $350
To Cash A/c $350
(Being fund is established)
On September 30
Merchandise inventory A/c Dr $40
Postage expense A/c Dr $123
Miscellaneous expenses A/c Dr $80
Cash shortage A/c Dr $3
To Cash A/c $246
(Being fund is reimbursed)
On October 1
Petty cash A/c Dr $50 ($400 - $350)
To Cash A/c $50
(Being fund is increased by $50)