All categories

3 years ago

When is VAT added to a product’s price?

Business

1 answer:

Sophie [7]3 years ago

3 0

VAT added to the products price at the stage of sale.

Answer: Option B

Explanation:

VAT stands for value added tax. VAT system is like a GST. The VAT has to be paid by the consumer or a business concern must pay the cost of goods and services and has to be subtracted material cost of previous year if any.

At the exact and each time value is added when a sale is made. Each and every seller in the production chain as to be charges VAT tax to the buyer, which it's remitted to the government.

You might be interested in

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De

Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0

3 years ago

Which one would be correct I’m to lazy to think :)

Levart [38]

I think it’s the second one letter B

6 0

3 years ago

Lansbury Inc. had the following balance sheet at December 31, 2019.

timofeeve [1]

Answer:

See explanation

Explanation:

Requirement A

See the image Below:

Requirement B

LANSBURY INC.

BALANCE SHEET

As at December 31, 2020

Assets

Cash $37,000

Accounts receivable $41,600

Investment $20,400 (Note - 1)

Plant asset $81,000

Less: Accumulated depreciation ($11,000)

Book value of Plant asset $70,000

Land $53,000

Total assets $222,000

Liabilities and Stockholders' Equity

Liabilities

Accounts payable $30,000

Notes payable $25,000

Total liabilities $55,000

Stockholders' Equity

Common Stock $120,000

Retained earnings $ 47,000 (Note - 2)

Total stockholders' equity = $167,000

Total liabilities & Stockholders' Equity = $222,000

Note - 1:

Sold investment's cost value calculation -

Selling price = $15,000

Less: Gain on sale = ($3,400)

Cost price = $11,600

Investment during 2019 = $32,000

Sale of Investment (book value) $11,600

Remaining value of Investment = $20,400

Note - 2:

Beginning $23,200

Add: Net Income $32,000

Less: Dividend ($8,200)

Ending retained earnings = $47,000

Requirement C

1. Cash flow to net income ratio:

It shows how much cash flows from operating activities during the year over a specific net income.

We know, Cash flow to net income ratio = $\frac{Cash flow from operating activities}{Net Income}$

Cash flow to net income ratio = $\frac{19,200}{32,000}$

Cash flow to net income ratio = 60%

2. Operating cash flow ratio:

It shows how much cash flows from operating activities during the year from the use of current liabilities.

We know, Operating Cash flow ratio = $\frac{Cash flow from operating activities}{Current liabilities}$

Operating Cash flow ratio = $\frac{19,200}{30,000}$

Operating Cash flow ratio = 64%

Note: Here, accounts payable is the only current liabilities as notes payable has a long-term value.

8 0

3 years ago

What is a Technical Writer? Please be fast! Thank you!

juin [17]

A technical writer is a professional information communicator whose task is to transfer information between two or more parties.

5 0

3 years ago

Read 2 more answers

You are considering borrowing $10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payment

madam [21]

Hello! The answer would be D. $3,741. I hope this helps!

4 0

3 years ago