In accounting, the inventory is always done annually so inventory must always be accounted for at the year end. In order to address issues such as customer theft or spoilage, you have to minus (it's market value) from the beginning inventory.
Answer:
Deal, Inc. working capital will be overstated while there will be a nil net effect on cash flows from operating activities.
Explanation:
The working capital of an entity is the difference between the entity's current asset and current liabilities at a given time or period. The operating activities of the cash flow statement is where the net income and changes in current liabilities are considered in the cash flow statement.
As such, when a company fails to accrue for sales salaries On December 31, Year 4, and the salaries are payable on January 6, Year 5, the current liabilities of the company would be understated and as such, it's working capital will be overstated.
Also, the net income will be understated as the corresponding entry in the accrual for sales salaries is an expense. Also, the ending balance of accrued sales salaries will be understated result in a nil effect on the operating activities of the cash flow.
Answer:
Sound Audio
Yes. This loss should be accrued.
Explanation:
Accruing the loss contingency gives the readers of the financial statements an early warning of the probable existence of a future loss. A loss contingency arises from a probable future event, which gives rise to an adverse outcome from a lawsuit. Since the cost of the loss can be reasonably estimated and the product recall is virtually certain, it is prudent for Sound Audio to provide for this loss in its December 2021 financial statements.
The account holder tries to take out more money than the account contains.
The answer is Country B
Comparative advantages can be described as a country's ability to product a certain product in higher quantities and lower price (efficiently) compared to another country.
In this case, Country A can product 100 CDs and only 100 DVDs, by while country B has the capacity to produce 50 CDs but 200 DVDs.
Clearly Country B has a better infrastructure to produce DVDs in bulk
