Answer:
INCORRECT.
In income summary account, all revenue accounts are closed by debiting them and crediting the income summary account. expense accounts are closed by crediting them and debiting income summary account. then on closing income summary account it shows debit balance if there is a net loss and it shows credit balance if there is a net income.
In the given case clever auto services has debit balance of $5,300 i,e it implies that clever auto services has loss .
Therefore above statement is wrong. It implies a loss of $5300 not the net income of $5,300.
Answer:
The estimated inventory at the end of February is $73400 as shown below
Explanation:
Beginning Inventory $57,800
Plus: Net purchases $120000
Freight-in $2,700
Cost of Goods Available for Sale $180500
less: Cost of Goods Sold
Net Sales$180000
Less Estimated Gross Profit $81000
Estimated Cost of Goods Sold $99000
Estimated Inventory before Theft 81500
Less: Stolen Inventory 8,100
Estimated Ending Inventory 73400
Gross profit $180000*45%=$81000
Answer:
<u>Democracy.</u>
Explanation:
Democracy is a social organization characterized by popular influence and participation in the political decision-making process. In the democratic regime, the people are free to choose their rulers through votes.
It can be defined in a broader context as a constitutional, electoral and administrative order, the foundations of which must be established according to a social system. Some fundamentals of democracy are:
- Freedom of expression and opinion of the individual.
- Freedom of expression and political opinion of the individual.
- Equal political rights and favorable opportunities for the people and parties to speak out on decisions of general interest.
Answer:
The separate-entity assumption
Explanation:
The separate-entity assumption is a principal in accounting according to which the financial transactions of a business and the personal expenses of the owners is to kept separate from each other. The expenses derived solely for the business is only to be counted under the expenses of the company. Inclusion of any personal expenses of the owner or any partner of the business is prohibited under this principal.
In the given excerpt, the owner of Shady Grove Company had violated the separate-entity assumption by including the expenses of his personal items under the name of the Company.
Answer and Explanation:
The ethical issues that occurs in the case when a corporate insider wants to purchase or sells in the firm where an individual works are as follows:
1. The information could be misuse
2. It would become unfair for the investors
3. The trust could be broke also it would create the discrimination with the other investors
4. The insider trading lowers the size of the market that ultimately decrease the volatility of the market
