A clothing retailer offers a larger

Capitalizing costs that should be expensed: a. is a practice mostly found in large, well-established companies. b. is a healthy

EleoNora [17]

Answer:

Option D. Has the effect of increasing net income by the same amount of the capitalized costs.

Explanation:

The reason is that the capitalized costs are the invesments in any assets whose useful life is more than one year and must be depreciated over useful life of the assets. If a expense nature cost is capitalized which must not be capitalized according to IAS 16 Porperty, Plant & Equipment then the expenses are understated which means that the profits are overstated. This means that presenting expenses as assets will increase the profits as costs will be fewer in amount presented in the financial statements.

8 0

3 years ago

The 2020 accounting records of Splish Brothers Inc. reveal these transactions and events. Payment of interest $ 10,400 Collectio

Alekssandra [29.7K]

Answer and Explanation:

The Preparation of cash flows from operating activities section using the direct method is shown below:-

Splish Brothers Inc.

Statement of Cash Flows using Direct method

For the Year ended 2020

Particulars Amount

Cash Flows from operating activities:

Cash collection from:-

Customers

($49,300 + $189,500) $238,800

Dividend Revenue $17,900 $256,700

Less: Cash payments for

Interest ($10,400)

Income Taxes (15,000)

Salaries and wages (57,700)

Operating Expenses ($28,400)

Cash payment to

Suppliers for Merchandise ($115,400) $226,900

Net Cash provided by operating activities $29,800

Since the cash payment reflects the cash outflow so this items would be represented in a negative sign and the cash collections reflects the cash inflow so this item would be represented in a positive sign

3 0

3 years ago

MNO preferred stock pays a dividend of $2 per year and has a price of $20. If MNO's tax rate is 21 percent, the required rate of

soldi70 [24.7K]

The required rate of return on its preferred stock is found by using PW = D/R.

Given Information

Dividend per year = $2

Stock price = $20

Tax rate = 21%

Required rate of return (R) = ?

The formula for use to derive the Required rate of return includes PV = D/R, where PW means Present worth, D = Dividend per year and R means Required rate of return.

PV = D/R

$20 = $2 / R

$20 * R = $2

R = $2 / $20

R = 0.1

R = 10%

Therefore,, the required rate of return on the preferred stock is 10%.

In conclusion, the required rate of return on its preferred stock is found by using PW = D/R.

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A(n) _____ is elected by the stockholders of a corporation to oversee its general operation and set long-term objectives.

wariber [46]

A board of directors is elected by the stockholders of a corporation to oversee its general operation and set long-term objectives. A board of directors can serve for a for-profit business, non-profit business, or on a government agency. The board of directors are voted in and recognized as important decision makers.

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Compare revolving credit and closed-end credit.

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The lender and borrower agree to the amount borrowed, the loan amount, the interest rate and the monthly payment, which depend on the borrower's credit rating.Generally, real estate and auto loans are closed-end credit, but home-equity lines of credit and credit cards are revolving lines of credit or open-end.

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