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pychu [463]
3 years ago
13

During 2018, P Company discovered that the ending inventories reported on its financial statements were incorrect by the followi

ng amounts: 2016 - $ 120,000 understated 2017 - $ 150,000 overstated P uses the periodic inventory system to ascertain year-end quantities that are converted to dollar amounts using the FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, P's retained earnings at January 1, 2018, would be:A. $270,000 overstated
B. $150,000 overstated
C. correct
D. $30,000 overstated
Business
1 answer:
const2013 [10]3 years ago
4 0

Answer:

D. $30,000 overstated

Explanation:

Understatement of ending Inventory overstate the value of cost of Goods sold and understate the value of Net income and retained earning as well.

Overstatement of ending Inventory understate the value of cost of Goods sold and overstate the value of Net income and retained earning as well.

In 2016 the net income and retained earning was understated by $120,000.

In 2017 the net income and retained earning was overstated by $150,000.

Net Effect of both event in Retained earning at January 1, 2018

$150,000 overstated - $120,000 understated = $30,000 overstated

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Governmental regulations such as the​ ________ Act mandate archiving business documents and relevant internal​ communication, in
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Answer:

B. Sarbanes-Oxley

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The Sarbanes-oxley act also know as Public company accounting reform and investor protection Act and Corporate and Auditing Accountability, Responsibility, and Transparency Act is a US Federal law that cracks down on corporate fraud. The act gave protection to whistleblowers and strengthened the independence and financial literacy of corporate boards.

The Act mandates archiving business documents and relevant internal​ communication, including​ e-mail and instant messages to guard against destruction of evidence to impede a federal investigation.

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3 years ago
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An extended period of little or no growth in gdp, wages, and prices is a period of?
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An extended period of little or no growth in GDP, wages, and prices is a period of stagnation.

When real economic growth is less than 2% annually it is considered stagnation. Stagnation is a prolonged period of little or no growth in an economy. This no growth economic period affects various sectors of the economy such as GDP, wages, prices etc.

Stagnation can occur as a temporary condition, such as a growth recession or temporary economic shock. Stagnation is a situation which occurs within an economy when total output is either flat, declining, or growing slowly.

Hence, stagnation in economy can occur due to a number of causes.

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3 0
1 year ago
You are analyzing a project and have developed the following estimates. The depreciation is $11,000 a year and the tax rate is 3
77julia77 [94]

Answer:

no option is correct, check the question to see if it was copied correctly and check the work to verify my answer

$1,430

Explanation:

worst case scenario:

2,500 units sold at $16 = $40,000

variable cost per unit $14 x 2,500 units = $35,000

contribution margin = $5,000

fixed costs = $8,500

depreciation expense = $11,000

cash flow = [(contribution margin - fixed costs - depreciation) x (1 - tax rate)] + depreciation

cash flow = [($5,000 - $8,500 - $11,000) x 0.66] + $11,000 = $1,430

8 0
3 years ago
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true

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Other than that, Pareto chart is also commonly used in quality control or searching the highest cause of defects.

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