Answer: Assets, net income, and equity overstated.
Explanation: Depreciation can be defined as the decline in value of assets.
A mistake to record depreciation which is the decline in value in asset will significantly affect the account records. If the asset in a financial record is overstated, the net income and equity are also overstated because the asset is used in calculation of net income and equity.
Answer:
$2,740,251.24
Explanation:
Applying power sizing technique or an exponential model to determine the cost of new boiler.
This model identify the cost variation along with change in capacity or power of the equipment.
Where,
Cb = Cost of new plant
Sa = capacity of new plant
Sb = capacity of old plant
x = cost capacity factor
Therefore,
= 2,000,000 × 1.3701
= $2,740,251.24
The correct answer is FIFO meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold.
Answer:
d. 12.5 times.
Explanation:
The computation of the accounts receivable turnover ratio is shown below:
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
where,
Net credit sales is $8,500,000
And, the Average accounts receivable would be
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
= ($600,000 + $760,000) ÷ 2
= $680,000
So, the accounts receivable turnover ratio would be
= $8,500,000 ÷ $680,000
= 12.5 times
We simply applied the above formula
Answer:
A share of ownership in a company.
Explanation:
A stock represents ownership of a company. The total value of an organization is subdivided into small units called stock, shares, or equity. Each stock or share is a small portion of the organization. Holders or owners of the shares are the owners of the company. They are known as shareholders or stockholders.
Shareholders acquire their shares or equity by either being the founders of the business or by purchasing them. When a business is being formed, the founders contribute capital, which converts to shares. The business may opt to sell more shares to the public through IPO when they need to raise additional capital.
