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3 years ago

Permanent accounts would not include: a. Accumulated depreciation b. Cost of goods sold. c. Current liabilities d. Inventory

Business

1 answer:

SCORPION-xisa [38]3 years ago

8 0

Answer:

The correct answer is letter "B": Cost of goods sold.

Explanation:

Permanent accounts are those that do not close at the end of a period because their values are measured cumulatively. They include asset, liability, and capital accounts. Permanent accounts are reported in the Balance Sheet. They are the opposite of temporary accounts which are closed period by period.

<em>Asset accounts such as accumulated depreciation and inventories or Liability accounts like current liabilities are considered permanent accounts. Cost of goods sold is considered a temporary account.</em>

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Below are Company Y's financial statements:

kow [346]

Answer:

Company Y

The external financial needed is:

= $1,290.

Explanation:

a) Data and Calculations:

Company Y's financial statements:

Income Statement

Sales $7,900

Costs 5,500

Taxable income $2,400

Taxes (25%) 600

Net income $1,800

Balance Sheet

Current assets $3,900

Fixed assets 8,600

Total assets $12,500

Current liabilities $2,100

Long-term debt 3,700

Equity 6,700

Total liab. & equity $12,500

Projected Income Statement:

Sales $9,085 ($7,900 * 1.15)

Costs 6,325 ($5,500 * 1.15)

Taxable income $2,760

Taxes (25%) 690

Net income $2,070

Dividends = 40% $828

Retained earnings $1,242

Projected Balance Sheet

Current assets $4,485 ($3,900 * 1.15)

Fixed assets 9,890 ($8,600 * 1.15)

Total assets $14,375

Current liabilities $2,415 ($2,100 * 1.15)

Long-term debt 4,018 ($14,375 - 2,415 - 7,942)

Equity 7,942 ($6,700 + $1,242)

Total liab. & equity $14,375

Working capital = $2,070 ($4,485 - $2,415)

Capital expenditure = $1,290 ($9,890 - 8,600)

External financing needed = Net income minus (working capital plus capital expenditure)

= $2,070 - ($2,070 + 1,290)

= $1,290

7 0

3 years ago

Some economists argue that competitive price-searcher markets are inefficient because

inna [77]

Answer:

A competitive price-searcher market is a market where there are low entry or exit barriers, and the suppliers can determine the price of their products. Some economists believe that this type of market is inefficient because the suppliers are not able to sell enough output in order to minimize their average costs. Since the demand is very elastic in price searcher markets, any price change will cause a drastic change in the quantity demanded.

Price searcher markets share a lot of similarities with perfect competition markets, the main difference is that suppliers and consumers are not price takers. This means that any supplier can change their sales output by changing their price, which leads to greater competition.

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3 years ago

What type of business contracts with physicians to handle their claims and/or account receivable

k0ka [10]

Centralized billing office

4 0

3 years ago

Identify each statement as true or false. If false, indicate how to correct the statement.

bekas [8.4K]

Answer:

1. True: Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

2. False: Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False because limited liability of Stockholders is considered as an advantage.

3. False: When a corporation is formed, organization costs are recorded as an asset. It is false because organization costs are recorded as expenses.

4. True: Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.

5. False: The number of issued shares is always greater than or equal to the number of authorized shares. It is false because the number of issued shares is always less than or equal to the number of authorized shares.

6. False: A journal entry is required for the authorization of capital stock. It is false because journal entry is not required for the authorization of capital stock but for issuance.

7. False: Publicly held corporations usually issue stock directly to investors. It is false because publicly held corporations issue stock indirectly to investors via investment banking institutions while privately held corporations issues stock directly.

8. True: The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.

9. False: The market price of common stock is usually the same as its par value. It is false because there isn't any relationship between market value of common stock and its par value.

10. False: Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock. False because retained earnings refer to the total amount of net income held by a corporation for its future use.

3 0

3 years ago

When the supply of a commodity decreases while demand remains the same price tends to:_____.

postnew [5]

When the supply of a commodity decreases while demand remains same then the same price tends to increase.

Given that the supply of a commodity decreases while the demand remains same.

We are required to find the effect of decrease of supply on the price of the commodity if the demand remains same.

Supply is the amount of good that the producer manufactures and sends to the market.

Demand is the amount of good that the consumer wants to consume.

When the supply of a commodity decreases,the supply will shift leftwards. The demand remains same then from the graph we can find that the price of the commodity increases from P to P1.

Hence when the supply of a commodity decreases while demand remains same then the same price tends to increase.

Learn more about supply at brainly.com/question/25843620

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3 0

1 year ago