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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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Tatum Manufacturing recently opened a new facility in Hong Kong. The firm can most likely expect the Hong Kong government to ___

pickupchik [31]

The expectation of the Tatum Manufacturing firm from the Hong Kong government is to <u>ensure fair competition </u>with its competitors.

<h3>What is a manufacturing firm?</h3>

A manufacturing firm is a firm that engages in massive scale production of goods and commodities that uses physical labor and/or machinery to turn raw materials and parts, into finished goods or completed items.

The finished goods could be sold:

To other manufacturers for the fabrication of more sophisticated products,
To wholesalers that redistribute the goods to retail traders, or
To final consumers directly.

The role of the Hong Kong government to Tatum Manufacturing Firm in as much they comply with the government regulations and taxes is for the government to ensure that there is fair competition for Tatum Firm with its competitors.

Learn more about a manufacturing firm here:

brainly.com/question/24519299

4 0

2 years ago

Ghost, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are project

Elina [12.6K]

Answer:

a-1. We have:

Recession EPS = $1.49

Normal EPS = $2.13

Expansion EPS = $2.45

a-2. We have:

Recession percentage change in EPS = -30.00%

Expansion percentage change in EPS = 15.00%

b-1. We have:

Recession EPS = $1.12

Normal EPS = $1.76

Expansion EPS = $2.08

b-2. We have:

Recession percentage change in EPS = -36.36%

Expansion percentage change in EPS = 18.18%

Explanation:

Note: See the attached excel file for the calculations of the EPS and the percentage changes in EPS.

From the attached excel file, we have:

a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.

Recession EPS = $1.49

Normal EPS = $2.13

Expansion EPS = $2.45

a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession.

Recession percentage change in EPS = -30.00%

Expansion percentage change in EPS = 15.00%

b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization.

Recession EPS = $1.12

Normal EPS = $1.76

Expansion EPS = $2.08

b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.

Recession percentage change in EPS = -36.36%

Expansion percentage change in EPS = 18.18%

Download xlsx

3 0

3 years ago

What are the four requirement of valid contract

timurjin [86]

Four requirements for a valid contract are an offer, acceptance by the other party of the offer, a mutual agreement or meeting of the minds of the contracting parties and a valid consideration.

3 0

4 years ago

Conduct your own social engineering experiments. 1) While at a restaurant, convenience store, bank, place of business, or any sh

alexandr1967 [171]

<u>Explanation:</u>

Note, in the ICT field, the term social engineering refers to actions that involve the use of cunning to steal sensitive or unauthorized information from someone by means of social or human interactions with them.

For example, such information could be manipulatively gotten;

address,
age,
Social security number,
the number of children, etc.

5 0

3 years ago

An individual purchased a fixed annuity with flexible premiums. When she annuitized the policy, she chose the Life Income 10-Yea

Dvinal [7]

Answer:

The beneficiary should receive 6 more years of payment.

Explanation:

An annuity certain option guarantees that the insured or his/her beneficiaries will receive payments for a minimum period of time in case the insured dies.

In this question the certain option was 10 years, during the first 4 years the insured received his/her annuity payments, but once the insured passed away, his/her beneficiaries will continue to receive payments until the 10 year period ends (6 more years).

5 0

3 years ago