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3 years ago

Under the accrual basis of accounting:_________.

1 answer:

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events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

Answer: Option C.

Explanation:

Accrual basis is a technique for recording bookkeeping exchanges for income when earned and costs when brought about. A key bit of leeway of the collection premise is that it matches incomes with related costs, so the total effect of a business exchange can be seen inside a solitary announcing period.

Accounting method that records incomes and costs when they are brought about, paying little heed to when money is traded. The expression "accrual" alludes to any individual section recording income or cost without a money exchange.

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Larry Bar opened a frame shop and completed these transactions:1. Larry started the shop by investing $40,800 cash and equipment

natita [175]

Answer:

$44,100

Explanation:

Larry Bar

Investment in Cash - Receptionist's salary+Sales of custom frame = Cash account balance

Investment in Cash $40,800

Paid $2,000 Receptionist's salary $2,000

Sales of custom frame $5,300

Hence:

$40,800-$2,000+$5,300

=$44,100

Cash account balance will be $44,100

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3 years ago

Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often mak

Kipish [7]

Answer: C. inefficiently low; inefficiently high

Explanation:

If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.

However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.

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3 years ago

Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statem

Levart [38]

Answer:

a) Break-even point in dollar for 2017

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost)/Sales

C.M Ratio = $(2,500,000-1,750,000)/2,500,000

C.M Ratio = 0.30 or 30%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.30

= $2,833,333.33

Alternative 1

Sales Price per unit after increasing 20%,

Sales Price = ($5*0.2) + $5 = $6

Total Sales ($) = (Sales Price x Sales Units)

Total Sales ($) = ($6*500,000) =$3,000,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = ($3,000,000- $1,750,000)/$3,000,000

C.M Ratio = 0.42 or 42%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.42

= $2,023,809.52

Alternative 2

Commission = $2,500,000*5% = $125,000

Change in fixed annual salaries = $150,000-$60,000 = $90,000

Total fixed costs after deducting the changes in fixed salaries = $850,000-$90,000 = $760,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost - Commission on sales)/Sales

C.M Ratio = ($2,500,000-$1,750,000-$125,000)/$2,500,000

C.M Ratio = 0.25 or 25%

Explanation:

Sales = $2,500,000

Sales Unit = $2,500,000/500,000 = $5

Variable Cost = 1,750,000

Fixed costs = $850,000

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3 years ago

After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (ben

saveliy_v [14]

Answer:

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

Explanation:

Total explicit costs will be the total amount spent.

Therefore explicit costs =

Rent + office supplies + office staff + telephone expenses

Explicit costs = 10000 + 1000 + 24000 + 4000 = $39,000

Implicit costs= 40000 + (6000 * 0.07) =$40,420

Accounting profit = Total revenue - Total explicit costs

Accounting profit = $147,600 - $39,000 = $108,000

Economic profit = Total revenue - Total opportunity cost.

(Where total opportunity cost= explicit cost + implicit cost)

Therefore economic profits =

$147,600 - ($39,000+$40,420)

= $68,180.

Therefore,

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

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3 years ago

Read 2 more answers

The two types of interaction diagrams are _____ diagrams.

Sedaia [141]

Answer:

B: class and sequence.

please brainlist answer

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3 years ago