Expenses decreases retained earnings; therefore, to increase any expense, one would debit the expense account
What does retained earnings mean?
Retained earnings are profits retained in the business for reinvestment and for expansion purposes, in essence, expenses would reduce the retained earnings, the higher the expenses, the lesser the retained earnings become.
From a double entry point of view, an increase in expenses would be debited to expense account and a decrease is credited instead.
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Answer:
d. Substantive analytical procedures would not be appropriate in any of the above scenarios.
Explanation:
Substantive analytical procedures are a type of audit procedure that is performed to address an identified risk of material inconsistencies of the significant account balances regarding its financial statements.
According to this statement, the option a. is wrong due to the auditor's primary objective to reduce audit costs. It would not be so useful to foster internal control efficiency (option b.) Misstatements are to be revised but are no likely to occur, then option C. is disqualified.
<span>Distributing products to retailers on an as needed basis as described in the video is an example of a(n) <u>JIT or Just-In-Time system. </u>
JIT System is one of the many inventory strategies that companies use. It essentially increases the efficiency of the company to produce goods and it decreases wastage of goods because they only come when they are needed during the process of production. As this continuously happens, inventory costs decrease and the company becomes more productive and efficient</span>
Answer:
Total contribution margin= $76,328
Explanation:
<u>First, we need to calculate the unitary contribution margin:</u>
Unitary contribution margin= 64,960 / 4,000
Unitary contribution margin= $16.24
<u>Now, the total contribution margin for 4,700 units:</u>
Total contribution margin= 16.24*4,700
Total contribution margin= $76,328
