Answer:
a. $200 decrease in net income.
Explanation:
When insurance is paid in advance, the entries required are;
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Given that the Adjustments columns show expired insurance of $200, this will be recorded as an expense and will thus decrease the net income.
Answer:
A. its operating income for the period will be higher than under absorption costing
Explanation:
As we know that
Under absorption costing, the fixed cost is divided on the number of units produced
And under the variable costing, the fixed cost is considered as a cost selling of goods so the absorption costing method will be lower than the value of finished goods.
As per the question, the started finished goods will help and sell the whole production and starting balance that means under absorption costing of goods which is to be sold is much than variable costing.
Answer:A
Explanation:
A regressive tax is a tax impose in such a manner that the tax rate decreases as the amount subject to taxation increases.
