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3 years ago

Comparing each item on a financial statement with a total amount from the same statement is referred to as

Business

1 answer:

Arada [10]3 years ago

8 0

Answer: vertical analysis

Explanation:

Vertical analysis is when each item on a financial statement is compared with a total amount from the same statement.

Vertical analysis refers to a financial statement analysis method whereby each line item in a statement is listed as a percentage of the base figure. In such case, each amount in the income statement will then be restated as a percentage of sales.

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On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for consulting services to be provided for one year begin

igor_vitrenko [27]

Answer:

c) Unearned Revenue $ 500, Revenue $ 500

Explanation:

When the cash was received on August 01, no accounting services were provided so the entry would have been:

Cash Debit $ 1,200

Unearned revenue Credit $ 1,200

Unearned Revenue is a liability account

On December 31, a recognition needs to be made for the services revenue earned and hence the amount for 5 months amounting is debited to unearned revenue and revenue credited with $ 500.

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3 years ago

A major drawback of using historical results for judging current performance is that _____. A. past results may be incorrect B.

pychu [463]

Answer:

C. inefficiences may be concealed in the past performance.

Explanation:

A major drawback of using historical results for judging current performance is that inefficiences may be concealed in the past performance.

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3 years ago

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If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio

vfiekz [6]

Answer:

34%

Explanation:

The formula to calculate the contribution margin ratio is:

Contribution margin ratio= (Sales – variable expenses)/sales

Sales=$803,000

Variable expenses=$803,000*66%=$529,980

Now, you can replace the values:

Contribution margin ratio=($803,000-$529,980)/$803,000

Contribution margin ratio=0.34

According to this, the answer is that the contribution margin ratio is 34%.

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3 years ago

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p

olchik [2.2K]

Answer:

560,000 grams should be purchased

Explanation:

production budget:

estimated sales = 140,000 units

planned ending inventory = 77,000

total production required = 217,000

- beginning inventory = (27,000)

units to be produced = 190,000

materials budget:

units to be produced = 190,000

materials per unit = 3

total direct materials needed = 570,000

+ desired ending inventory = 47,000

- beginning inventory = (57,000)

direct materials purchases = 560,000

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3 years ago

Which term describes the ability to use different types of reasoning for different situations and analyze the possible outcomes

lesya692 [45]

The answer is <u>"a. critical thinking".</u>

Critical thinking is a standout among the most looked for after aptitudes in pretty much every industry and each work environment. It alludes to the capacity to break down data dispassionately and make a contemplated judgment.

You can show your critical thinking capacities by utilizing watchwords identified with basic reasoning in your resume and introductory letter, and during your interview.

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3 years ago

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