Answer:
b. if the firm charges the users depreciation only, the likely consequence is that demand for resources equals capacity.
Explanation:
When the large central system is purchased it will cost high and therefore depreciation expense will be higher for the large systems. The depreciation expense needs to be allocated equally to all the users of large central system because if the entire cost will be charges to a single user it will start creating loss to the company and demand be will less than the capacity. If only depreciation cost is charged the users will be allocated lesser costs and will result in higher profits.
Answer:
Credit sales
Debit receivables
Explanation:
This is a sales on account transaction which affect the sales and receivables account.
When this transaction occurs , the company has definitely made a sale which will lead to an inflow of cash in 30 days time, even though the income is recognized immediately according to the accrual method of accounting
To record this , the sales account is credited with the value of the goods sold and the account receivable is debited for with the same amount.
The receivable is a record of payment being owed to the company by its customers.
Answer:
The correct answer is letter "B": since there is no count of inventory during the review period, a stockout is possible.
Explanation:
The fixed-period inventory system, also known as a periodic inventory system, only updates the organization’s inventory balance when an actual physical count of the inventory is necessary. Most companies only carry out a physical inventory count once every quarter or year, being this the reason why this system is called "fixed-period". However, this could lead to a company stockout at an unexpected period when the count was not carried out yet.
Answer:
I can put a call through to the organisers of the trip explaining that I have cash but it's not within reach and that if they reserved the spot for me, they'd get the money as soon as I can access it. Given that I am a valuable member of the student store staff, that reputation should count in times like this.
To borrow money from the cashbox would be a huge ethical risk and can easily be termed mismanagement of funds especially where the store policy does not allow such.
My value in the store lies largely on my integrity and the trust they students have invested in my person.
I'd rather miss the road trip than make a regrettable unethical decision.
Cheers!
Answer:
a) Maximum no. of shares that the company can issue
= Total Authorized Shares - Shares Outstanding
= 2100000 - 1400000
= 700,000
b) Number of shares to be issued to raise $44,000,000 at $55 per share
= 44,000,000 / 55
= 800,000
No, the firm would not be able to raise the needed fund.
c) The company will have to increase the number of authorized shares which would involve making amendments to its charter of incorporation. The amendments to the charter can be done only by vote of the existing shareholders.