Answer:
B is the correct option, because it indicates that rent expense was only recognized in the books of account when paid for in cash.
Explanation:
Cash basis of accounting simply implies that an organization that adopts it recognizes income when received and expense when paid for in cash.
The above is different from accrual basis,where income is recognized when earned(when obligation is discharged by the seller) and expense when incurred(when the goods involved or services have been received)
All other options except B have something to do with payment on account,hence they are wrong.
Answer:
$23,062.50
Explanation:
The computation of the operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense + interest expense
where,
EBIT = Sales - cost of good sold - depreciation expense - interest expense
= $53,500 - $24,400 - $2,600 - $2,350
= $24,150
And, the income tax expense would be
= (Sales - cost of good sold - depreciation expense - interest expense) × tax rate
= ($53,500 - $24,400 - $2,600 - $2,350) × 25%
= $24,150 × 25%
= $6,037.50
So, the OCF would be
= $24,150 + $2,600 - $6,037.50 + $2,350
= $23,062.50
Answer:
a). True
Explanation:
<u>The given statement asserts a true claim that the job structure of an organization comprises of corresponding pay scales for the different employees performing different activities and functions according to the levels of authority or leadership they have been provided</u>. The job structure is the aspect that establishes the hierarchy or of various ranks and positions in which the company is organized to aptly manage the running of the business and its associated activities successfully and efficiently. Thus, the statement is <u>true</u>.
In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level. If the variable cost is a fixed charge per unit and fixed costs remain the same, it is possible to determine the fixed and variable costs by solving the system of equations.
1. Calculate variable cost per unit using the identified high and low activity levels
Variable cost = (Total cost of high activity – Total cost of low activity) / (Highest activity unit – Lowest activity unit)
((112,000 X .167) - (168,000 X .132)) / (168,000-112,000) = variable costs
2. Solve for fixed costs
To calculate the total fixed costs, plug either the high or low cost and the variable cost into the total cost formula.
It doesn't appear that you have enough information to answer this section. You need to know total cost to be able to answer this.
Total cost = (Variable cost per unit x units produced) + Total fixed cost
3. Construct total cost equation based on high-low calculations
Answer:
D. Health and social services. fall into the Recovery mission area only
Explanation:
Health and social services. fall into the Recovery mission area only
