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3 years ago

When changing from the average cost method to FIFO, the company:

Business

1 answer:

Lesechka [4]3 years ago

7 0

Answer: B. Revises comparative financial statements.

Explanation:

When switching from a median Cost method to FIFO method. this sort of switch can always yield a major impact on all financial statements. Any organization which wishes to change would settle on the requirement to scrutinize whether it has to restate its financial data for previous years to reflect the new method or only apply the new method to the present and future years.

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On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $4,500, terms 4/10, n/30. On June 20, SH returns to

Georgia [21]

Answer: $3360

Explanation:

Based on the information given in the question, the amount of cash paid by SH to Oakley will be calculated as thus:

SH will be entitled to a discount of 4% since the payment was made within the discount period, therefore, the discount that is applicable will be:

= $4500 - $1000

= $3,500

Therefore, the amount of cash payment that is made by SH to Oakley will be:

= $3,500 - (4% × $3,500)

= $3500 - (0.04 × $3500)

= $3500 - $140

= $3360

Therefore, the amount of cash paid by SH to Oakley is $3360.

7 0

3 years ago

Select all that apply Describe data processing in accounting by selecting the correct statements below. (Check all that apply.)

lakkis [162]

Answer:

I. Batch processing accumulates source documents for a period of time and then processes them all at once.

II. Online processing enters and processes data as soon as source documents are available.

III. An advantage of online processing is timeliness.

IV. Accounting systems differ with regard to how input is entered and processed.

Explanation:

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).

A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Hence, activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as operating activities. All the net income or cash from all operational business activities of a company is recorded as operating activities.

The correct statements that best describes data processing in accounting includes;

I. Batch processing accumulates source documents for a period of time and then processes them all at once.

II. Online processing enters and processes data as soon as source documents are available.

III. An advantage of online processing is timeliness.

IV. Accounting systems differ with regard to how input is entered and processed.

4 0

3 years ago

. From the following list of account balances, calculate the correct amount of current liabilities: Accounts receivable $ 5,000

zhannawk [14.2K]

Answer:

The answer is A.

Explanation:

Current liabilities are the total amount of money due within a period of s year. Current liabilities must be repaid within a year(less than 12 months.

Current liabilities in this question are:

Payable. $5,300

Unearned revenue $900

Sales tax payable. $3,700

Estimated warranty payable $900

Note payable due in 90days $1,300

Total. $12,100

$12,100 is therefore the total current liabilities

6 0

3 years ago

Special Plc has an issued share capital at 1 January 2019 of 1,000,000 ordinary shares of 20p each and 50,000 convertible prefer

coldgirl [10]

Answer:

A. £4.15

B.£4

Explanation:

A. Calculation for the diluted EPS for 2019

Using this formula

2019 Diluted EPS =(Earnings after tax for the year ended-Preferred Dividends)/Total Diluted Shares Outstanding

Let plug in the formula

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

2019 Diluted EPS=[£5,000,000-(£2.50 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

2019 Diluted EPS=[(£5,000,000-£125,000)/(£1,000,000+£125,000+£50,000)]

2019 Diluted EPS=£4,875,000/£1,175,000

2019 Diluted EPS=£4.15

Therefore 2019 Diluted EPS (Earning per share) will be £4.15

B. Calculation for the diluted EPS assuming that the convertible preference shares were receiving a dividend of £6 per share instead of £2.50.

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*500/£1,000)+(50,000*£1)]

Diluted EPS=[£5,000,000-(£6 per share*50,000)/£1,000,000+ (£250,000*0.5)+(50,000*£1)]

Diluted EPS=[(£5,000,000-£300,000)/(£1,000,000+£125,000+£50,000)]

Diluted EPS=£4,700,000/£1,175,000

Diluted EPS=£4

Therefore the Diluted EPS (Earning per share) will be £4

6 0

3 years ago

Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely h

pogonyaev

Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources-This Statement is True

Explanation:

A franchiser is a type of organizational structure where a product is created, designed, financed, and initially produced in the home country, but for the product specific reasons like cost or product perishiability it relies heavily on foreign personnel for further production, marketing, and human resources

Some example of the companies that follow this concept are McDonald's,Coca-Cola.

6 0

3 years ago

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