Answer:
C Liabilities are understated, and net income is overstated.
Explanation:
To accrue for interest expense, the required entries are;
Debit Interest expense (p/l)
Credit Accrued Interest (B/s)
Being entries to recognize accrued interest expense.
If this is not posted, liabilities and expenses for the period would be understated. As such, net income would be overstated.
Hence the right answer is C Liabilities are understated, and net income is overstated.
The contribution margin is the difference between sales volume and variable costs.
Or to put it another way: the contribution margin is the profits of a company, without considering the fixed costs.
We have then:
MC = $ 120 -60 $ = $ 60
Answer:
the contribution margin per unit is $ 60
Answer:
Dr. Account Payable $5,700
Cr. Discount Income $114
Cr. Cash $5,586
Explanation:
Term 2/10, net/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after purchase and net credit period of 30 days.
According to given data
Purchases = $5,700
As the payment is made within discount period, so discount will be availed
Discount = $5,700 x 2% = $114
Amount to be paid = $5,700 - $114 = $5,586
Answer:
SHEILA
Explanation:
A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.
Sheila's opportunity cost in producing berries = 10/40 = 0.25
Jim's opportunity cost in producing berries = 8/24 = 0.33
Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries
Answer:
5.79 times
Explanation:
The times interest earned ratio tells us the number of times the company's made earnings in multiple of its debt interest obligation.
The formula for times earned interest ratio is the income before interest and taxes divided by the interest expense.
income before tax is $302,634
income before interest and taxes= $302,634+$63,228=$365,862.00
times interest earned ratio=$365,862.00/
$63,228= 5.79 times
