Answer: Income is higher under absorption costing by $15,000. This is consistent with a general rule of thumb: Increases in inventory cause income to be higher under absorption costing than under variable costing, and vice versa.
Explanation:
I believe the answer is A) A decrease in the cost in the goods and services.
Answer and Explanation:
Earnings per Share, EPS = <u>Net Income dividend of preferred stock</u>
Number of stock outstanding
EPS depends on the earnings and its dilution due to increase in preferred stock also it depends on the net income earned
When EPS is higher than analyst prediction,
this may be due to increase in the net income
or
payback of common stock or preferred stock
thereby leading to reduction in the number of stock outstanding
When EPS is lower than analyst prediction
this would be due to reduction in the net income
or
increase of stock or preferred stock due to fresh issue
Insurance against issues that could lead to reduction on income and inrease in the activities that will lead to net income increase can help meet or surpass analyst prediction
Answer:
$6,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Since the Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment at December 31, 2016, the additional amount to be allowed
= $7200 - $1200
= $6000
This will be posted as
Debit Bad debt expense $6000
Credit Allowance for doubtful debt $6000