Which of these is most likely to make you sleepy while you’re reading?

Woods Company made an ordinary repair to a delivery truck at a cost of $500. Woods' accountant debited the asset account, Equipm

Nutka1998 [239]

Answer:

Yes this statement was an error and its effect on financial statements of Woods will be that asset ( equipment in this case) would be overstated and obviously the net income of the company would also increase.

Explanation:

Here Woods accountant has made the error of debiting the cost of $500 on the asset account ( equipment) , which shouldn't have happened as the asset accounts have natural debit balance which means that when an amount is debited to the asset account it will increase the value of the asset.

So therefore here we can say that the asset here is overstated and if the assets are shown overstated it is natural that the income reflected would also be overstated.

5 0

3 years ago

The Marketing Control Statement is a valuable statement for marketers because it only utilizes costs that the marketer can contr

pishuonlain [190]

Answer: True

Explanation:

The Marketing Control Statement is quite beneficial to marketers as it avoids fixed costs and shows them the variable and programmed costs both of which can be controlled. This enables them to know what they need to and can change in a way that they can come up with an optimal marketing mix to ensure profitability.

It is also a very uncomplicated statement to prepare which further ingratiates it to marketers who would like to avoid all the jargon of income statements.

3 0

3 years ago

Granite Construction Company is considering selling excess machinery with a book value of $175,000 (original cost of $315,000 le

aleksandr82 [10.1K]

Answer:

Sell option is preferred.

Explanation:

The decision whether to lease out the machinery that is surplus to requirement or sell outrightly is dependent on the differential analysis performed below.In the analysis I have compared the profits under each option in order to guide the final decision:

Differential analysis as at 7th November(Sale or lease option)

Sell option lease option

revenue from sell/lease option $180,000 $200,000

Brokerage commission(5%*$180,000) ($9,000) -

costs of repairs,insurance and property taxes - ($34,400)

Profits $171,000 $165,600

The sell option provides $5400($171,000-$165,600) than the lease option,hence the sell option is preferred.

One would have expect that the lease option since it has more revenue to preferable but the costs of repairs,insurance and property taxes were also on the high side

5 0

3 years ago

Carol Bates, a young, dynamic, and affluent banker, likes to shop online and try out new products. She likes to keep herself upd

Wittaler [7]

<h2>"Innovative" traits best describes Carol</h2>

Explanation:

Based on the given statement, Carol Bates is very much interested in grabbing the latest gadgets. It means that,

Carol is updated
Adaptable to change

Have exploring capability to upgrade
A technology savvy
Monitors market and has good knowledge on current trends
Self-motivated to be on track
Has creative skills to use the latest gadgets

All the above qualities describes that Carol Bates is innovative.

4 0

3 years ago

A smartphone manufacturing company uses social media to achieve different business objectives. Match each social media activity

bekas [8.4K]

Explanation:

Following is the correct matching of different social media activities with the objectives of the company.

Releases videos of its new, high tech smartphone manufacturing facility

To give consumers a peek into its operations

Hosts an online sweepstakes and gives the winners an extended warranty on a smartphone model

To increase brand loyalty

Gives bloggers a new smartphone handset before the model is on the market

To create consumer awareness about a new product

Ask customers to determine their next model using hashtag #NEWMODEL

To allow consumers to be part of product development

5 0

4 years ago

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