All categories

3 years ago

The understatement of the beginning inventory balance causes:__________.

Business

1 answer:

klemol [59]3 years ago

6 0

Answer:

D) Cost of goods sold to be understated and net income to be overstated

Explanation:

At the time when the beginning balance of the inventory is understated so there is a decrement in the cost of goods sold due to which there is a rise in the net income

Therefore in the given case at the time when there is an understatement of beginning inventory so there is a understated of cost of goods sold and the overstated of the net income

Hence, the option D is correct

You might be interested in

Hi-Tek is a young start-up company. No dividends will be paid on the stock over the next 15 years, because the firm needs to plo

Zolol [24]

Answer:

current share price = $5.40

so correct option is C. $5.40

Explanation:

given data

dividends paid = 15 years

pay = $6 per share

increase = 4%

to find out

current share price

solution

we know that Value after year 15 will be = ( D15 × Growth rate) ÷ (required return - growth rate) ......................1

put here value

Value after year 15 = $\frac{6*(1+0.4)}{0.16 - 0.04}$

Value after year 15 = $52

so here current share price will be

current share price = Future dividends × Present value of discounting factor

current share price = $\frac{6}{(1+0.16)^{16}}+\frac{52}{(1+0.16)^{16}}$

current share price = $5.40

so correct option is C. $5.40

4 0

4 years ago

What is the difference between virtual integration and vertical integration?

poizon [28]

A: A horizontal integration consists of companies that acquire a similar company in the same industry, while a vertical integrationconsists of companies that acquire a company that operates either before or after the acquiring company in the production process.

5 0

3 years ago

What course of action does a party to a contract have if the other party is found to be in breach of that contract?

taurus [48]

Damages for breach, reasonable attorney fees and costs are the course of action which a party in contract would have.

<h3><u>What is attorney fees?</u></h3>

Attorney's fee is a term used mostly in the United States to describe payment for legal services rendered for a client, whether in or out of court.
It could be a flat-rate, hourly, or contingent charge.
According to recent studies, lawyers who charge flat fees as opposed to hourly rates put in less effort for their clients and produce worse results. In a court case, attorney fees are distinct from fines, compensatory and punitive damages, and (apart from in Nevada) from court costs.

According to the "American norm," unless there are special statutory or contractual rights, the losing party in a dispute often does not pay the winning side's legal fees.

Know more about attorney fees with the help of the given link:

brainly.com/question/27960792

#SPJ4

6 0

2 years ago

You won a lottery! To collect your winnings you will be paid annual amounts of $11,300 for each of the next 21 years. The approp

Stella [2.4K]

Answer:

Difference = $9773.02

Explanation:

An annuity is a series of cash flows or payments that are of constant amount, occur after equal intervals of time and are for a limited and defined period of time. Thus, the winnings from lottery are an annuity as they pay a fixed amount $11300 every year for 21 years.

The annuity can be of two types namely ordinary annuity and annuity due. In ordinary annuity the cash flows occur at the end of the period and in annuity due, the cash flows occur at the beginning of the period. When we calculate the present value of these cash flows, it is understood that the present value of annuity due is greater than the present value of ordinary annuity.

The formulas for the present value of both ordinary annuity and annuity due are attached.

In the formula, R is the annuity payment or cash flow and i is the relevant interest rate and n is the number of years or periods.

PV of annuity ordinary = 11300 * [ (1 - (1+0.1)^-21) / 0.1 ]

PV of ordinary annuity = $97730.24548 rounded off to $97730.25

PV of annuity due = 11300 * [ (1 - (1+0.1)^-21) / 0.1 ] * (1+0.1)

PV of annuity due = $107503.27

Difference = 107503.27 - 97730.25

Difference = $9773.02

5 0

4 years ago

A chocolate manufacturer advertises heavily during Christmas with an ad that shows only a picture of red, green, and silver wrap

nikdorinn [45]

Answer: Reminder

Explanation:

The reminder advertising is one of the type of marketing advertisement strategy that is used for reminding about the various types of products and the services in the market and this strategy is also used for introducing the new features and characteristics in the existing products.

The main objective of the reminder advertisement is that it basically using the promoting or the advertising strategy for targeting the customers or users about the goods and the services ion the market.

According to the given scenario, a chocolate manufacturer is basically using the reminder advertising during the Christmas. Therefore, reminder advertising is the correct answer.

3 0

3 years ago