The objective of financial reporting is to provide useful financial information to capital providers.

the percent of sales method for estimating bad debts uses only income statement account balances to estimate bad debts. group st

crimeas [40]

The statement that the percent sales method for estimating bad debts for a company, will only use those balances in the income statement is False.

<h3>What is the percent of sales method?</h3>

The percent of sales method is one of the methods that companies can use to estimate the bad debts that it expects in a given period. Bad debts refer to those Account Receivables that will not pay the company back even after they have taken goods or services on credit. In order to be able to use the percent of sales method, the sales of a company need to be known.

The sales that a company makes includes both the sales that the company made and the accounts receivable. The Accounts Receivables go to the Balance Sheet and Sales go to the Income Statement. This means that the Balance Sheet balances are used as well as Income Statement balances and not just the latter.

Find out more on the percent of sales method at brainly.com/question/13958992

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6 0

10 months ago

Teal Motors Inc., an automobile company, outsources the manufacturing of most of the automobile parts to several other companies

il63 [147K]

Answer:

The question is missing the below options:

A. loss of identity

B. loss of frequency

C. loss of facility

D. loss of focus

The correct option is D,loss of focus.

Explanation:

Loss of identity does not arise in this case, as Teal Motors Inc. is still responsible for coupling these parts into complete and brands it in own brand name.

Since it is not clear cut that Teal Motors Inc. has in-house facilities to produce the outsourced parts,letting the available production facilities rot away without being put to proper use does not arise.

The focus here is that the company specializes in the critical components that are most important in its automobiles and would prefer to outsource non-critical parts to others,hence a modular approach to manufacturing is favored.

6 0

3 years ago

Which of the following is correct: A. The post-closing trial balance will ensure the accounting equation is balanced at the end

kondor19780726 [428]

Answer:

D. Worksheet is a tool used in preparing adjusting entries and the financial statements, and the use of worksheet is optional

Explanation:

The correct option D because worksheet is used to adjust value and prepare the financial statements and it is not mandatory to use.

The post-closing trial balance might show that accounting equation is balanced but not every time. It only ensure the total of debits balances and total of credits balances are equal. All transaction might not correctly journalized.

The accounting cycle starts with analyzing the business transactions and ends with the preparation of a Financial Statements.

Property, Plant and Equipment are our physical, tangible and long term assets which include all land, office, building, Machinery, equipment and vehicles.

5 0

3 years ago

Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the bas

rewona [7]

Answer:

We will only produce further product Y and Z

Explanation:

We should check the increase in sales revenue with the increase in cost to know if further process acheive a gain:

Product X

Increase in sales value:

348,000 - 340,000 = 8,000

Additional Cost: (38,000)

difference: (30,000) Non-profitable

Product Y

Increase in sales revenue:

185,000 - 150,000 = 35,000

additional cost: (30,000)

difference: 5,000 Profitable

Product Z

Increase in sales revenue:

147,000 - 110,000 = 37,000

additional cost: (22,000)

difference: 15,000 Profitable

3 0

3 years ago

Mahogany inc. is a consulting firm. it reports its results on a cash-basis with a fiscal year ending june 30th. mahogany perform

Dimas [21]

If these are the missing choices:
A : the Securities and Exchange Commission, income principle
B : GAAP, revenue recognition principle
C : GAAP, expense recognition principle
D : the IRS, tax principle 

My answer is: B : GAAP, revenue recognition principle

The cash-basis is not in accordance with GAAP, and mahogany is in violation of the REVENUE RECOGNITION PRINCIPLE.

GAAP refers to Generally Accepted Accounting Principle.

It is stated that income must be recognized when it is earned not when cash is received. Because the company is using cash-basis, they will only report income earned on July 12 when they received the money not when they earned it which is before their fiscal year ending June 30.
They should recognized receivables from customers before closing the books for the fiscal year.

6 0

3 years ago