Answer:
sole proprietorship
Explanation:
A sole proprietorship is the most common form of business organization. It's easy to form and offers complete control to the owner
Answer:
a. The product must be sold
Explanation:
Total revenue and total expenses are recorded in the income statement.
If the total income exceeds than the total expenditure then the company earns net income And if the total income is less than the total expenditure then the company has a net loss.
The product includes direct material cost, direct labor cost ,and the manufacturing overhead cost. If the product cost is not sold then it is shown in the asset side of the balance sheet as an inventory
And, if the product is sold, the same is subtracted from the cost of goods sold and shown in the income statement
Answer:
The amount of cash for the payment of dividends during the year is B. $40,000
Explanation:
To Determine the amount of cash for the payment of dividends during the year, we open a Dividends Payable T - Account and find the amount via <em>missing figure approach</em> as follows:
Debits :
Cash (<em>Balancing figure</em>) $40,000
Ending of year Dividends Payable $15,000
Totals $55,000
Credits :
Beginning of year Dividends Payable $10,000
Dividends declared during the year $45,000
Totals $55,000
