1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sidana [21]
2 years ago
8

Accrued salaries owed to employees for October 30 and 31 are not considered in preparing the financial statements for the year e

nded October 31. Indicate which items will be erroneously stated, because of the error, on (A) the income statement for the year and (B) the balance sheet as of October 31. Also indicate whether the items in error will be overstated or understated.
Business
1 answer:
alexgriva [62]2 years ago
7 0

Answer:

Indication of items erroneously stated on:

A) the income statement for the year

Salaries Expense will be understated.

Therefore, the Net Income will be overstated.

B) the balance sheet as of October 31:

Salaries Expense Payable (current liabilities) will be understated.

Explanation:

When accrued salaries are not accounted for in the financial statements for an accounting period, it means that the revenues generated for that period are not being matched with the expenses incurred in generating the revenues.  Such omission does not agree with the accrual concept and the matching principle of generally accepted accounting principles.  These require that expenses are accrued whether paid for or not, and that expenses are matched to the period's revenue since they are necessarily incurred in generating such revenue.

You might be interested in
"In the late summer of 2005 some regions of the country were suffering from drought. What effect would we expect this to have on
den301095 [7]

Answer:

The answer is: You would expect a lower stock price.

Explanation:

Since John Deere´s main business is manufacturing and selling farming equipment you would expect its sales to rise when farmers are having a successful business year. But when farmers are having a very harsh and bad economic year then you would also expect John Deere´s sales to fall.

If your clients are suffering from a drought that means they will probably lose money or in a best case scenario earn a smaller profit. So they will have less money to invest in new equipment which results in lower sales for companies like John Deere. If John Deere´s sales are lower, they themselves will have a bad economic year so it is logical to assume that their stock price will fall.  

3 0
3 years ago
Kahle Company has two support departments: Purchasing and Payroll. The Purchasing Department expense is $500,000 to process 50,0
allsm [11]

Answer: $15600

Explanation:

To calculate the amount of the Payroll Department's cost that is allocated to the Assembly Department goes thus:

First we need to calculate the allocation rate which will be:

= $300,000/25,000

= $12.

Then, the departmental cost will be:

= Payroll checks × Allocation rate

= 1,300 × $12

= $15,600.

Therefore, the amount of the Payroll Department's cost that is allocated to the Assembly Department is $15600.

3 0
3 years ago
3. The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: Sales Variable
Tasya [4]

Answer:

My guess is a

IM NOT SURE...:P

Explanation:

8 0
3 years ago
Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that
Vanyuwa [196]

Answer:

Deposited amount will decrease by 1% and $2,000

Explanation:

Inflation rate will effect the value of money due to decrease in purchasing power of the currency holder.

We will use following formula to calculate the impact

Nominal rate = Real interest rate + Inflation rate

5% = Real interest rate + 6%

Real interest rate = 5% - 6% = -1%

The deposited amount will be decreased by 1%.

Deposit value = $200,000 x ( 1 - 1% ) = $198,000

Decrease in value = $200,000 - $198,000 = $2,000

6 0
3 years ago
Select the correct answer. Ashley is a finance executive. She has gathered all the data from different departments regarding the
mrs_skeptik [129]

Answer:

Ashley is a finance executive. She has gathered all the data from different departments regarding the finances expended as well as earned in the process of selling a product. She needs to prepare an income statement. How should she start preparing the income statement?

show the sales revenue first

Explanation:

The sales revenue shown reflects the income accrued during the cause of sales and this comes first during income statement preparation

7 0
3 years ago
Other questions:
  • When a buyer acquires a property having an existing mortgage loan, a decision must be made as to whether or not the subsequent o
    10·1 answer
  • A rightward shift of the investment demand curve will:
    8·1 answer
  • Central planning is a key characteristic of which economic​ system?
    13·2 answers
  • The management at torque autos inc. and redwing automobiles inc. realized that by combining the two entities the stakeholders of
    12·1 answer
  • The Attaran Corporation manufactures two electrical​ products: portable air conditioners and portable heaters. The assembly proc
    13·1 answer
  • Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 201
    15·2 answers
  • Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1, 855, 816. The bonds are dated January 1, 2017
    9·1 answer
  • The following information has been provided to you by Watts Corporation: Net income $ 175,300 Increase in accounts payable 18,50
    13·1 answer
  • Which resource management activity establishes common definitions for capabilities of personnel, equipment, teams, supplies, and
    9·1 answer
  • The legal concept of limited use permits limited duplication and use of a portion of copyrighted material for certain purposes,
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!