Answer:
True
Explanation:
Balance sheet is the financial report of an organization that includes investments, liabilities, assets wealth, overall debt, etc. during a given time.
The income statement is one of the company's financial statements that indicates the company's profits and expenditures for a specific period of time. This shows how the profits are converted into net revenue or net income.
Explanation:
The adjusting entry is as follows
Insurance expense A/c Dr $4,800
To Prepaid insurance A/c $4,800
(Being the insurance expense is recorded)
The computation is shown below:
= Beginning balance + debited amount - unexpired insurance amount
= $6,600 + $2,300 - $4,100
= $4,800
So while preparing the adjusting entry, we debited the insurance expense account and credited the prepaid insurance account
Answer:
The earnings per share for Bramble in 2020 is $2.99
Explanation:
This was arrived at by preparing income statement for 2020,where in the results from continued operations and discontinued were shown.
The income from continued operations attracted tax at 35% while the losses from the discontinued operations got a tax benefit at the same 35% tax rate.
Note that the earnings used in calculating earnings per share is net of preferred dividends as only earnings attributable to ordinary shareholders are considered.
Find attached spreadsheet for the full blown income statement and the calculation of earnings per share.
Answer:
Explicit costs - $51,000
Explicit costs are those for which a person incurs in actual spending of money. In this case, Christine had to pay $15,000 in wages, and $36,000 in rent ($3,000 x 12). These are expenses that she had to pay money for, and that had to be accounted for in the accounting books, and in the financial statements. These are in other words, explicit costs.
Implicit costs - $40,000
Implicit costs are simply the opportunity costs. An opportunity cost is the cost of the next more valuable alternative when faced with two or more options. No money is paid for this costs. The implicit costs for Christine were the $40,000 that she not receive as wages if she had continued working at a real state firm.
Answer: ARR = Average profit/Initial outlay x 100
ARR = $19,000/$250,000 x 100
ARR = 7.60%
The correct answer is C
Depreciation = Cost - Residual value/Estimated useful life
= $250,000 - $20,000/5 years
= $46,000 per annum
Average profit = Total profit/No of years
= $325,000/5
= $65,000
$
Average profit 65,000
Less: Depreciation 46,000
Average profit after depreciation 19,000
Explanation: In determining the accounting rate of return of the investment, there is need to calculate depreciation using straight line method. The amount of depreciation would be deducted from the average profit so as to obtain the average profit after depreciation. The average profit would be divided by the initial outlay in order to obtain the accounting rate of return.
