Answer:
<u>A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).</u>
<u>Explanation</u>:
Remember, the key word here is about whether diversification into a particular industry would likely increase shareholders value.
Thus, any company wanting to test this out would consider whether conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).
This option is better because improved profits implies better shareholder value.
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Answer:
(-$10,000) Unfavorable
Explanation:
Direct materials:
Quantity = 15 pounds
Standard price = $16 per pound
Actual price = Purchase Price ÷ Purchase quantity
= 170,000 ÷ 10,000
= 17
Material price variance:
= Actual purchase quantity × (Standard price - Actual price)
= 10,000 × ($16 - $17)
= 10,000 × (-$1)
= (-$10,000) Unfavorable
Answer:
d. verify that the debits and credits are in balance.
Explanation:
Option A is wrong because without adjusting entries, there is not necessary to adjust the flow of the financial statement.
Option B is wrong because, if we do not give adjusting entries, a debit and a credit entry will not come, and that cannot disturb the income statement.
Option C is wrong because whether the adjusting entries are posted or not, net income will always go to the statement of owner's equity.
The purpose of adjusting entries is to verify that the debits and credits are in balance. Therefore, <em>option D</em> is the answer.
Answer:
The correct answer is $12,000.
Explanation:
According to the scenario, the given data are as follows:
Shares issues On Jan.1 Year 1 = 4,000 shares
Par value of shares = $50 par
Cumulative preferred stock = 6%
So, we can calculate the dividend arrearage as of January 1, Year 2 by using following formula:
Dividend as of Jan.1, year 2 = Shares issues On Jan.1 Year 1 × Par value of shares × Cumulative preferred stock
= 4,000 × $50 × 6%
= $12,000
