Answer:
A debit to Salaries Expense and a credit to the Salaries Payable Account.
Explanation:
This adjusting entry brings the salary expense account to its accrued balance in line with the accrual concept and matching principle of generally accepted accounting principles. These state that expenses and revenues should not reflect only the cash basis but the accrual basis, whereby unpaid or prepaid expenses, deferred or unpaid revenues that relate to the accounting period are brought into consideration.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Year 2 Year 1
Net sales $651,500 $583,700
Cost of goods sold 389,300 360,920
Ending inventory 78,500 80,180
To calculate the inventory turnover, we need to use the following formula:
Inventory turnover= Cost of goods sold/ average inventory
Average inventory= (beginning inventory + ending inventory) / 2
Average inventory= 158,680/2= 79,340
Inventory turnover= 389,300/79,340
Inventory turnover= 4.91
Answer:
e. None of the above.
Explanation:
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due <u>due to new information related to the stock"</u>. This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.
