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Oliga [24]
3 years ago
8

Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual maintenance on its equipment, $

5,400; remodeling of offices, $22,000; rearrangement of the shipping and receiving area resulting in an increase in productivity, $35,000; addition of a security system to the manufacturing facility, $25,000. How should Demmert account for each of these expenditures
Business
1 answer:
ladessa [460]3 years ago
3 0

Answer:

Annual maintenance on its equipment = Expensed

Remodelling of offices = Capitalised and depreciated.

Rearrangement of the shipping and receiving area = Capitalised and depreciated.

Addition of a security system = Capitalised and depreciated.

Explanation:

Annual maintenance on its equipment = $5,400  ( This is a normal maintenance bill and can be entirely expensed in the year it occurs.)

Remodelling of offices = $22,000 ( This is a part of the transformation process and should be capitalised and depreciated accordingly.)

Rearrangement of the shipping and receiving area = $35,000 (Since this is a reorganisation that would increase efficiency, it should be capitalised and depreciated.)

Addition of a security system = $25,000 ( Since this is an addition of asset, it should be capitalised and depreciated.)

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In an Internal Service Fund, the expectation is that:_____.A. Each year's revenues should equal each year's expenses because the
Elis [28]

Answer:

In an Internal Service Fund, the expectation is that:_____.

A. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.

Explanation:

There are two proprietary funds used in governmental accounting.  One is the internal service fund.  The other one is the enterprise fund.  The internal service fund tracks the goods or services rendered by a service department to other governmental departments.  It is established on a cost reimbursement basis.  This is why the expenses for the year are expected to equal the annual revenue.

7 0
2 years ago
A corporation ran an ad which showed environmental experts praising its social initiatives. The ad encourage readers to visit it
slamgirl [31]

Answer:

institutional copy.

Explanation:

In the scenario described above, the institutional copy style was used, which can be defined as a type of advertisement whose objective is not to sell a product or service, but rather to promote the selling company through its policies, philosophies and objectives, with the objective of strengthening and creating its reputation so that customers are aware of their values ​​and reputation, generating recognition and prestige.

This is what the company analyzed in the above question did by running an ad that shows environmental experts praising its social practices and encouraging readers to access its website and learn about its positive environmental practices

7 0
3 years ago
In general, value-creating diversification of General Electric under Jack Welch was:________
nydimaria [60]

Answer:

b) Economies of scale

Explanation:

In general, value-creating diversification of General Electric under Jack  Welch was  Economies of scale.

He shut down factories, set workers loose, and offered a promise of "growing rapidly in a slow growth economy," titled a speech he made in 1981 shortly after he became President.

This period of mass restructuring gave him the surname of Neutron Jack when he took people out, much like a neutron bomb as he left the houses.

3 0
2 years ago
"Malika wants to study the effect of rising textbook prices on the number of books students purchase. In planning her study, she
antoniya [11.8K]

Answer:

Use the ceteris paribus assumption

Explanation:

By using the ceteris paribus assumption she can assume all other conditions are equal and that the number of books purchased by students and the price of the books are the only variables in the study

With the Latin phrase, ceteris paribus, meaning all other things are the same or other things considered as being equal or remain constant, it is possible to determine causation of an event by focusing on the effect of a one of the several independent variables on the dependent variable.

4 0
3 years ago
Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attracti
Veronika [31]

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

   Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the \text{private benefits from the good are less than the social benefits} from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

6 0
2 years ago
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