Answer:
Effect on income= $4,500 increase
Explanation:
Giving the following information:
Special offer: 9,000 units of product S51 for $20.50 a unit.
Direct materials $ 3.10
Direct labor 1.50
Variable overhead 6.40
The customer would like modifications made to product S51 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value.
<u>Because it is a special offer, we will not have into account the fixed costs.</u>
Unitary variable cost= 3.1 + 1.5 + 6.4 + 5= $16
Investment= 36,000
Effect on income= 9,000* (20.5 - 16) - 36,000
Effect on income= 40,500 - 36,000
Effect on income= $4,500 increase
Answer:
C. Depreciation is a current expense of a cash outflow in the current period.
FALSE depreciation is a deferral expense it do not related t oa cash flow
Explanation:
A. The income statement is put together at a specific point in time (end of a business quarter, or business year) and so the sale could be in one period and the cash received in another period.
CORRECT income statement end at a certain date and include transaction under accrual accounting which doesn't relate to cash disbursements or collection
B. The income statement contains the set of expenses associated with the products or services sold during the current operating period, with those expenses not associated with current cash flow labeled as nonminuscash expense items
CORRECT It works with accrual accounting
D. Companies depreciate fixed assets (such as office furniture, equipment, machinery, and buildings) over an assigned time period, but the initial cash outlay for the fixed asset typically occurs at the time the asset is acquired by the firm.
CORRECT the cash disbursements occurs at time zero. Then, the accounting distributes this over several period to decrease the impact in the first period
Answer:
A) $10,195
Explanation:
This can be calculated as follows:
Amount in Account "B" = $12,850.25
Remaining balance after moving $2,500 from Account "B" to account "A" = Amount in Account "B" - $2,500 = $12,850.25 - $2,500 = $10,350.25
Amount moved from account "B" to account "C" = Remaining balance after moving $2,500 from Account "B" to account "A" * 1.5% = $10,350.25 * 1.5% = $155.25
Balance after moving 1.5% of the remaining balance in account "B" to account "C" = Remaining balance after moving $2,500 from Account "B" to account "A" - Amount moved from account "B" to account "C" = $10,350.25 - $155.25 = $10,195
Therefore, the correct option is A) $10,195.
According to the Uniform Commercial Code's interpretation of an open quantity term, if the quantity term is left open in a contract for the sale of goods courts generally have no basis for determining a remedy.
<h3>What do you mean by Uniform Commercial Code?</h3>
The uniform Commercial code states that a sale consists of the passing of title from the seller to the buyer for a price.
According to the Uniform Commercial code's interpretation of an open quantity term, if the quantity term is left open in a contract for the sale of goods, courts have no basis for the determination of remedy.
Learn more about uniform commercial code here:
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Answer: coinsurance clause
Explanation:
A coinsurance clause is a provision in the home insurance policy which requires the individual to carry coverage that is worth a certain percentage of the home's value. The failure to meet requirement will reduces the compensation after a loss.
Under the coinsurance clause, the insurance company will reimburses the value of damages to an insured asset for at least 80% of the replacement value of the asset. The reinsurance clause allows an insurer to take the reinsurance based on the original insurance.
