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2 years ago

Choose the correct category for the items from Sun Company's perspective.

Business

1 answer:

olga nikolaevna [1]2 years ago

3 0

Answer:

a. Land purchased by Sun Company from a local finance company

1) REAL ASSETS, the land exists as a physical asset regardless of the company's transaction.

b. Sun Company's administration building, which houses the finance department

1) REAL ASSETS, the building exists as a physical asset regardless of the company's transaction.

c. Sun Company's inventories of raw materials

1) REAL ASSETS, the inventories exists as a physical asset regardless of the company's transaction.

d. Accounts receivable: money owed to Sun Company by other companies who have purchased products on credits

2) FINANCIAL ASSETS, accounts receivable is a financial concept, not a physical asset

e. Sun Company's corporate checking accounts

2) FINANCIAL ASSETS, checks is a financial concept that represent money, not a physical asset

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What is the basic purpose of the consumer price index (CPI)? A. to track monthly changes in prices paid by urban consumers B. to

Elina [12.6K]

Answer:

A). to track monthly changes in prices paid by urban consumers.

Explanation:

CPI(Consumer Price Index) is characterized as 'a statistical estimate of the price level of goods and services bought by consumers for consumption purposes by the households.' It primarily aims to estimate the change or swap in the prices of the weighted average price of the common basket(consumption goods, as well as, services that the consumers pay for). It is calculated using the formula;

$CPI_{t} = \frac{C_{t} }{C_{0} } * 100$

where,

$CPI_{t}$ = current Consumer Price Index

$C_{t}$ = Current price basket

$C_{0}$ = Cost of price basket in the base year

It assists in deducing whether the average prices have received a fall or rise and determines inflation or deflation. Thus, <u>option A</u> is the correct answer.

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3 years ago

Which of the following statements is false concerning the use of ABC in service industries?

ELEN [110]

Answer:

b. When using ABC for service industries, special methods must be used to identify cost pools and cost drivers due to the unique nature of the services offered.

Explanation:

The cost pool method are the same we should look for activities which add value to the product to provide a more accurate product costing.

In cases of services the company will also determinate activities considering this premise therefore, there is no especial nature to offer to the client.

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3 years ago

Issy's Ice Cream is an international business. As such, it a. invests in international trade or investment. b. needs to have man

pentagon [3]

Answer: The correct answers are "a. invests in international trade or investment." and d. needs to manufacture products or provide services that target a global market.".

Explanation: A company that engages in international business is one that trades goods, services, technology or physical and / or human capital globally.

This means that instead of existing and developing in separate national markets, it unites and transforms them into a single global market through the elimination of barriers between borders.

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3 years ago

Tom Tom LLC purchased a rental house and land during the current year for $150,000. The purchase price was allocated as follows:

Anika [276]

Answer:

correct option is B.$2,273

Explanation:

given data

purchased = $150,000

building = $100,000

land = $50,000

to find out

Tom's maximum depreciation for this first year

solution

we will apply here The mid month convention applies

and recovery period for Residential property = 27.5-year

maximum depreciation will be here as

maximum depreciation = $100,000 × 2.273%

maximum depreciation = $100,000 × 0.02273

maximum depreciation = $2,273

so correct option is B.$2,273

5 0

3 years ago

Oriole Company issues $200,000, 20-year, 9% bonds at 104. Prepare the journal entry to record the sale of these bonds on June 1,

user100 [1]

Answer:

Dr Cash $208,000

Cr Bonds payable $200,000

Cr Premium on bonds payable $8,000

Explanation:

Preparation of the journal entry to record the sale of these bonds on June 1,

Based on the information given we were told that the company issues the amount of $200,000 at 104 which means the that the journal entry to record the sale of these bonds on June 1 will be:

Dr Cash $208,000

(2,000 × $104)

Cr Bonds payable $200,000

(2,000 × $100)

Cr Premium on bonds payable $8,000

(2,000 ×$4)

Note:-

$200,000/100 =$2,000

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3 years ago