Answer:
Option A is the correct answer,no adjustment is needed.
Explanation:
When related companies sell to each other,the sales transaction is not sales in actual sense,as it is likened to the left hand of an individual exchanging cash with the right hand,in other words, the cash is still owned by the same person.
The same concept is applicable to subsidiaries and parent,the sales recorded from a group perspective is when they sold to external third parties.
When sales happen between related companies, a provision for unrealized profits has to be made to the tune of inventory purchased from related companies not yet sold externally,as the whole of the goods have been to third parties, no such provision or adjustment is required.
Answer:
The correct answer is letter "B": the purchase of new capital.
Explanation:
In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include <em>stocks, bonds, real estate, mutual funds </em>and<em>, </em>to a lesser degree<em>, commodities, annuities, and options.
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Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.
Answer:
Accounting information helps users make business and financial decisions.
Explanation:
Users of accounting information are divided into :
- Internal users
- External users
Internal users include : owners, managers, employees
External users include : shareholders, tax authority, regulatory bodies
Based on the information contained in the financial information a shareholder can decide if to invest in a company or not to.
Also, mangers can decide to invest in new ventures based on the information on profitability contained in the financial statements.
Answer:
d. 44%
Explanation:
Calculation to determine what DTI ratio is
First step is to calculate the Debt
Using this formula
Debt = (Rent expense + Carr payment + Loan + Credit card payment) × Number of months in a year
Let plug in the formula
Debt =[($695 + $265 + $200 $160) × 12 months]
Debt= $1,320 × 12 months
Debt = $15,840
Now let calculate DTI ratio using this formula
Using this formula
Debt to income ratio = (Debt) ÷ (Income) × 100
Let plug in the formula
DTI ratio=[ ($15,840 ÷ $36,000) × 100]
DTI ratio=0.44*100
DTI ratio= 44%
Therefore DTI ratio is 44%
Answer:
(1) rate = 25% of direct labor cost
(2) rate = 30% of direct materials
Explanation:
To determinate the rate We distribute the total overhead cost over a given cost driver.
factory overhead 117,000
direct materials 390,000
direct labor 468,000
(1) We are asked to use direct labor as a cost driver
117,000/468,000 = 0.25 = 25%
(2) We are asked to use direct materials as a cost driver
117,000/398,000 = 0.25 = 30%
