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ddd [48]
4 years ago
11

Which of the following statements about depreciation is correct? When depreciation expense is incurred, cash balances are reduce

d. Depreciation reduces the book value of assets. Depreciation expense does not affect net income. Depreciation is subtracted from cost of goods sold to calculate net income.
Business
1 answer:
Ksju [112]4 years ago
6 0

Answer:

The correct answer is letter "B": Depreciation reduces the book value of assets .

Explanation:

Depreciation shows how much and the value of the assets was used up. This also aims to balance an asset's cost to the revenue that the asset has helped the business gain. Used as an income tax deduction, depreciation calculations offer businesses an annual allowance for the use and deterioration of tangible (physical) assets.

<em>Depreciation reduces the book value of assets because, after the depreciation calculation is done, the amount computed decreases the current value of the asset it represents.</em>

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Sanborn Company has 10 employees, who earn a total of $1,800 in salaries each working day. They are paid on Monday for the five-
Black_prince [1.1K]

Answer:

Debit Salaries Expense $5,400; Credit Salaries Payable $5,400

Explanation:

Based on the information given we were told

the Company employee earn the amount of $1,800 in salaries for each working day and since they are been paid on Monday for the 5 work week ending on the previous Friday in which we Assume that year ended on December 31, which is a Wednesday this means that the Journal entry will be

Dr Salaries Expense $5,400

Cr Salaries Payable $5,400

(1,800×3)

8 0
3 years ago
Why is an integrated baseline review important for earned value management implementation?
elena-s [515]

Organizations that have never dealt with one or never established an Earned Value Management System frequently undervalue the importance of the IBR (EVMS). An IBR: Offers a chance to contrast the expectations of the Customer Program Manager(s) with those of the Contractor Program Managers who are actually executing the project.

<h3>Why is an integrated baseline review important?</h3>

The IBR creates a shared knowledge of the baseline for project performance measurement. Through this knowledge, a plan of action for assessing the risks present in the program's performance measurement baseline and the management procedures in use during project execution will be agreed upon.

<h3>What is earned value management?</h3>

In order to monitor progress against a baseline, identify issues, and anticipate cost (and, to some extent, schedule) at completion, Earned Value Management (EVM), a project performance management technique, integrates cost, schedule, technical scope, and risk.

Learn more about integrated baseline review: brainly.com/question/14319126

#SPJ4

8 0
2 years ago
Snackyville sells a wide variety of snacks to retail grocery stores. Snackyville recently released two new snacks: a popular tra
Akimi4 [234]

Answer:

Both the trail mix and granola bars are tied products since the selling of one of the (the popular trail mix) is tied to the selling of the other product (the less popular granola bars).

Companies do this taking advantage of a very popular product, in order to either increase the sales of a less popular product or simply to get rid of the remaining inventories of some other product.  

3 0
3 years ago
Copy equipment was acquired at the beginning of the year at a cost of $36,600 that has an estimated residual value of $3,300 and
jeka57 [31]

Answer:

a. $33,300

b. $0.03 per copy

c. $7,560

Explanation:

Units of Output = (Cost - Residual Value) × ( Period`s Production / Total Expected Production)

Depreciable Cost = Cost - Residual Value

                             = $36,600 - $3,300

                             = $33,300

Depreciation Rate = Depreciable cost ÷ Expected Production

                              = $33,300 ÷ 1,110,000 copies

                              = $0.03 per copy

Depreciation for the year = Depreciation Rate × Period`s Production

                                            = $0.03 × 252,000 copies

                                            = $7,560

8 0
3 years ago
XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30.00 per unit; however, $21.40 in fi
Anuta_ua [19.1K]

Answer:

increase in income  of $80

Explanation:

Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.

Note : The  fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.

<u>Analysis of Costs and Savings</u>

Purchase Price (400 widgets × $44.00)  =    ($17,600)

Savings :

Variable Costs ($35.60 × 400 widgets)   =     $14,240

Fixed Cost ( $8.60 × 400 widgets)           =      $3,440

Net Income effect                                      =           $80

Conclusion :

The effect on net income if the company instead buys the widgets is an increase in  income  of $80

3 0
4 years ago
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