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serg [7]
3 years ago
15

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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A product's standard cost card specifies that a unit of the product requires 4 direct labor-hours. During September, 3,350 units
umka2103 [35]

Answer:

option (2) $420.00 F

Explanation:

Data provided in the question:

standard direct labor-hours required = 4

Actual units made = 3,350

Budgeted units = 3,350 + 150 = 3,500

Budgeted direct labor cost = $117,600

Direct labor cost incurred = $111,850

Direct labor-hours worked = 13,450

Now,

Labor efficiency variance = (Actual hours - standard hours) × standard rate

also,

Standard rate

= Budgeted direct labor cost ÷ ( direct labor-hours required × Budgeted units )

= $117,600 ÷ ( 4 × 3500 )

= $8.4

Thus,

Labor efficiency variance = [ 13,450 - (4 × 3,350) ] × $8.4

= $420     [positive answer mean Favorable ]

Hence,

The correct answer is option (2) $420.00 F

7 0
3 years ago
Read 2 more answers
Your company will need a business plan in order to do what? A. Increase revenue. B. Identify an opportunity. C. Pay taxes. D. Ge
rusak2 [61]

Answer:

Get Funding

Explanation:

Hope this helps :)

5 0
2 years ago
Read 2 more answers
Compton Inc. made a $500 ordinary repair to a piece of equipment. Compton's accountant debited this amount to the asset account.
wariber [46]

Answer:

b) No, the correct entry would be a debit to Maintenance and Repairs Expense and a credit to Cash.

Explanation:

Any expense will be capitalized when it increases the capacity and efficiency of the asset. A routine repair cost is incurred in order to keep the asset operational to generate income for the business.

To record the repair cost we need to debit the Maintenance and Repairs Expense and crediting cash ( assumed cash payment is made for the repairs ). We should not capitalize this cost by debiting the asset cost account.

8 0
2 years ago
Compute the present value of a $100 investment made 6 months, 5 years, and 10 years from now at 4 percent interest. Instructions
sladkih [1.3K]

Answer:

Present value investment = $98.05

Explanation:

given data

present value = $100

time 1 = 6 months = \frac{6}{12}  = 0.5 year

time 2 = 5 years

time 3 = 10 years

interest rate = 4 % = 0.04

to find out

Present value investment in 6 month for the rate  4 percent

solution

we get here Present value investment by as

Present value investment = present value ÷ (1+r)^{t} ..............1

put here value and we get

Present value investment = \frac{100}{(1+0.04)^{0.5}}    

solve it we get

Present value investment = \frac{100}{1.0198}

Present value investment = $98.05

6 0
3 years ago
When and under which Act citizen investment trust was established ?
nirvana33 [79]
18th March, 1991

Citizen Investment Trust (Nagarik Lagani Kosh), a statutory institute under Citizen Investment Trust Act, 2047, has ownership of Nepal Government as a public financial organization. It was established on 18th March, 1991(4th Chaitra, 2047B. S) as an autonomous body.
3 0
2 years ago
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