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3 years ago

What are the objective of financial report

Business

1 answer:

Fynjy0 [20]3 years ago

5 0

Formal record of the financial<span>activities and position of a business, person, or other entity</span>

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A company currently makes a component used in production. The per unit costs incurred to make the component include: Direct mate

elixir [45]

Answer:

The company should make the components because incremental costs are $2 less than the purchase price

Explanation:

The cost of making each unit of component = Direct Labour + Direct Material + Variable Overhead*

*The overhead cost of $4 contains both a fixed and variable element. It has been mentioned that 25% of overhead cost is incremental i.e. it increases with each additional unit produced (marginal cost). The incremental cost is the variable element.

Variable element = $4 x 25% = $1

Fixed element = $4 x 75% = $3

Thus, the cost of making each unit of component = $5 + $2 + $1 = $8,

whereas the cost of purchasing each unit of complement is $10. Hence, the company should produce the component as it is less by $2 ($10 - $8) to produce than it is to purchase.

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4 years ago

Binding arbitration:

Zielflug [23.3K]

Answer:D. can settle outstanding claims or disputes provided that all parties agree to its use.

Explanation: Binding arbitration is a type of arbitration/ dispute resolution where both parties involved in the dispute/ conflict choose a mediator mainly a legal practitioner and accepted to stand by the decision of the Binding arbitrator.

This type of arbitration is in contrast to non Binding arbitration where both parties are may not accept the decision of the arbitrator. Binding

Arbitration is adopted mainly in private disputes where both parties involved in the dispute agree to accept the verdicts of the trusted arbitrator.

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3 years ago

At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its

Mademuasel [1]

Answer:

Journal entries below

Explanation:

Dec 31, Bad debts expense a/c Dr $4,875

To Allowance for doubtful a/c Cr $4,875

(To record bad debt expense)

Feb 1, Allowance for doubtful a/c Dr $580

To Accounts receivable - P. Park a/c Cr $580

(To record allowance for doubtful a/c)

June 5, Accounts receivable -P. Park Dr $580

To Allowance for doubtful a/c Cr $580

(To record bad debt written off)

June 5, Cash a/c Dr $580

To Accounts receivable - P. Park a/c Cr $580

(To record cash paid).

• Chen write off the receivable from balance sheet using the percentage of sales method of receivable of ($975,000 × 0.5%) = $4,875.

• Also on February 1, Chen writes off P.Park from receivable of $580 since he knew he will not pay but did pay on June 5 for $580; meaning that Chen reinstate the receivable afterwards collected cash from receivable.

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3 years ago

8. Unemployment insurance contributes to structural unemployment by: A. keeping wages above the market-clearing level. B. keepin

Luda [366]

Answer:

The correct answer is C. allowing unemployed workers to search longer or less intensively for jobs

Explanation:

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3 years ago

A sole proprietorship: a. provides limited liability for its owner. b. has its profits taxed as personal income. c. can generall

Varvara68 [4.7K]

Answer:

The correct answer is option b.

Explanation:

A sole proprietorship can be defined as a business that is run by only one person. It is not a separate legal entity and is easy to form and the owner controls the whole business.

The disadvantage of a sole proprietorship is that there is an unlimited liability. There is no distinction between private and business assets. It does not have an unlimited life, with the death of owner it is generally shut down. The main source of capital is the owner.

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3 years ago