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3 years ago

What is the effect on the financial statement when a company fails to record depreciation?

Business

1 answer:

Mashutka [201]3 years ago

7 0

Answer:

d. Net income is overstated and assets are overstated

Explanation:

The journal entry to record the depreciation expense is shown below:

Depreciation expense A/c Dr

To Accumulated depreciation A/c

(Being the depreciation expense is recorded)

But if depreciation is failed to record, then the net income is overstated and assets are overstated as the accumulated depreciation decrease the cash balance and The net income overstated represents the understated in an expense account

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"The economy is doing well when the level of real GDP is at Potential GDP" True O False

Damm [24]

The answer is Trueeeee

8 0

3 years ago

Recently, Curtis Gibson had an interview for the position of a senior manager at a transit service. At the interview, the interv

romanna [79]

Answer:

D) conformity

Explanation:

Based on the information provided with regards to the situation at hand it seems that Curtis is using the impression management technique known as conformity. This technique refers to the act of agreeing to another person's personal opinion in order to gain their trust or approval. Which is what Curtis is doing by agreeing to every one of the interviewers opinions or positions.

If you have any more questions feel free to ask away at Brainly

3 0

3 years ago

The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 yea

hammer [34]

Answer:

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

Explanation:

Provided information,

There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.

Thus, depreciation per year will be decreased.

As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.

Also the net balance of fixed assets will be higher, as depreciation is less.

Therefore, correct statement is

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

8 0

3 years ago

Blue Spruce Corp. accumulates the following cost and net realizable value data at December 31. Inventory Categories Cost Data Ne

Kruka [31]

Answer:

Company's total inventory 30,850

Camaras: 10,960

Camcorders: 8,850

DVDs: 11,040

Explanation:

Camaras:

cost: 10,960

net realizable value: 12,060

Camcorders:

cost: 8,850

net realizable value: 9,170

DVDs:

cost: 12,100

net realizable value: 11,040

Company's total inventory

10,960 + 8,850 + 11,040 = 30,850

We must pick between the historic cost or the net realizable value the lower. The reasoning behind this is the conservatism accounting principle to keep the assets valued at minimum.

3 0

3 years ago

The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter.

spayn [35]

Answer: The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

Explanation:

Let us assume;

A be the no. of T.V spots

B be the no. of magazine spots

Given:

(a.) Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells.

(b.) Each TV spot costs $7000 and is expected to increase sales by 420,000 cases.

(c.) Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases.

∴ The objective function of this model will be given as :

max: 1.180( 420000 A + 500000 B )

(d.) A total of $100,000 may be spent on TV and magazine ads combined.

(e.) Mountain mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads.

∴ The subjective function will be :

(a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

∴ The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

4 0

3 years ago