Answer:
Explanation:
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Answer:
SCC won't pay any tax
Explanation:
Their loss of $30,000 in year 1 will be unused and made available to counterbalance the total generated earnings in year 2.
The $20,000 earnings in year 2 can be used to counterbalance the whole taxable income; so, SCC will not pay pay tax. SCC will have a ($10,000) loss carryover available for year 3 and beyond
The cash operating cycle for a merchandiser begins with cash purchases of merchandise and ends with receipt of cash.
<h3><u>
What is a merchandise?</u></h3>
- Any form of items, including those used for personal or professional purposes, as well as goods sold to the general public (retail) or other enterprises, are referred to as merchandise (wholesale).
- 'Freebies', or promotional things like the bespoke drink bottles in this example that are given away or not charged for, can also be referred to as merchandise.
- Calendars, magnets, wall art, stationery, greeting cards, textiles, badges, and a wide variety of other goods may be included in this category.
- A T-shirt with a slogan or logo that a political party distributes to voters during an election campaign or a calendar with a logo that a supplier offers its clients at the end of each year are two examples of freebie products.
Buying merchandise can be done with cash or on credit. The accounts involved in the transaction are the purchases account and the cash account if goods are paid for in cash. It debits the purchases account and credits the cash account.
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Answer:
An increase in dividends account
Explanation:
In accounting, a debit is used to record an increase in asset, an increase in expense and a decrease in liability.
With regards to the above, the correct option is an increase in dividends account because dividend is a current asset hence a debit records an increase in assets. Dividend is the returns paid to an investor or shareholder who invest or buys shares in a company. It is the reward paid to an investor for investing in a company.
