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4 years ago

The cost of equipment is expensed

Business

2 answers:

dedylja [7]4 years ago

7 0

Answer:

The answer is: b

Explanation:

Depreciation is a non-cash expense that is recognised in the income statement over the useful life of an asset. An asset is a business resource which can be used to generate economic value for the foreseeable future. The matching principle in accounting dictates that expenses incurred to generate revenue should be recognised in the same period which the revenue is earned. In this case, the equipment is purchased to generate revenue for the business, therefore the depreciation expense is recognised in the period where revenue is generated over its useful life. This recognition occurs over the periods when the equipment is utilised by the business, or is deemed beneficial to the business, that is from the purchase date of the equipment to the disposal date of the equipment.

elena-s [515]4 years ago

4 0

I believe it would be C I apologize if not

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Imagine a company that sells hammers charges customers $10 for each hammer. To make the hammer the company spends $7 on input co

Luda [366]

Answer: Production Method

Explanation: Gross domestic product, also known as GDP, calculates the total value of products and sevices that are produced in an economy. This in turn measures the total income of a country.

The method that applies in this scenario is the production method. This method focuses on goods, by looking at its final value after deducting the input costs, also known as intermediate goods. Input costs (or intermediate goods) are the cost of materials that were used to make the final product, i.e. the production costs. Once the input costs are deducted from the total value of the goods , what remains becomes the actual income of the goods, the final cost, which is then added to GDP.

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3 years ago

Corporate decision makers and analysts often use a particular technique, called a DuPont analysis, to better understand the fact

Juli2301 [7.4K]

Answer:

DuPont Equation

The three factors that directly affect a company's ROE (Return on Equity) are:

1. Profit margin

2. Total asset turnover

3. Equity multiplier

Explanation:

The profit margin measures the operating efficiency of the company with higher sales leading to higher profit margins.

The total asset turnover is a financial measure that divides turnover by the total assets. It shows the efficiency achieved in the use of assets to generate sales revenue.

The equity multiplier measures the financial leverage of the company. It shows how the use of debts increases the value of the company's equity.

6 0

3 years ago

Innovative Products reported net income of $226,000. Beginning and ending inventory balances were $48,000 and $49,000, respectiv

Maslowich

Answer:

The correct answer is $220,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the net operating cash flow by using following formula:

Net operating cash flow = Net income - ( Ending - Beginning Inventory) - ( Beginning - ending in AP)

By putting the value, we get

= $226,000 - ( $49,000 - $48,000 ) - ( $39,000 - $34,500)

= $226,000 - $1,000 - $4,500

= $220,500

4 0

4 years ago

Which of the following statements is TRUE?

dedylja [7]

Answer:B. The portfolio of smaller stock are typically less volatile than individual small stock.

C. On average smaller stock have lower return than larger stock.

Explanation:

The larger stock most times have a higher volatility than smaller stock and usually have better records of performance, this therefore makes their returns higher than lower stock.

On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.

A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.

8 0

4 years ago

DJH Enterprises has 3 departments. Operating results for 2019 are as follows:

konstantin123 [22]

Answer:

DJH Enterprises

The effect of eliminating Department 2 will increase the total operating income to $27,000 from $5,000.

Explanation:

a) Data and Calculations:

Operating Results for 2019 for the three departments:

Department 1 Department 2 Department 3 Total

('000)

Sales $670,000 $322,000 $856,000 $1,848

Variable costs 445,000 287,000 602,000 1,334

Contribution margin $225,000 $35,000 $254,000 $514

Direct fixed expenses $120,000 $27,000 $163,000 $310

Common fixed expenses 75,000 30,000 94,000 199

Total fixed expenses $195,000 $57,000 $257,000 509

Operating income (loss) $30,000 ($22,000) ($3,000) $5

Loss-making departments eliminated:

Department 1 Department 3 Total

Sales $670,000 $856,000 $1,526,000

Variable costs 445,000 602,000 1,047,000

Contribution margin $225,000 $254,000 $479,000

Direct fixed expenses $120,000 $163,000 $283,000

Common fixed expenses 75,000 94,000 169,000

Total fixed expenses $195,000 $257,000 $452,000

Operating income (loss $30,000 ($3,000) 27,000

3 0

3 years ago