Answer:
O C. Production
Explanation:
Production is the organized activity of combining different materials (inputs) to make consumable goods and services. It is the process of converting resources to finished products and services for sale. Production occurs to meet the demand for the goods and services in the market.
Entrepreneurship involves the generation of an idea and transforming it into a profitable business. Factors of production are the inputs necessary for making goods and services. These factors of production (inputs) are the ingredients in the production process.
Answer: Please refer to the explanation section
Explanation:
The question is not clear in terms of when is the financial year end, we only its 2021. We will assume the financial year started in January 2021 and ended December 2021
Operational Lease is an agreement where the lessor (owner of the asset) allows the lessee (user of the asset) to only use the asset without the transfer of ownership. Ownership of the asset is not transferred to the lessee/ user of the asset. lease Payments/ Rental payments are considered as expenses and are recognize in the income statement.
Custom Shirts Inc entered into a Lease agreement on the 1st of September 2021. assuming the financial year ends on December 2021, the expense Recognized in the Income statement for the year ended December 2021 will
$ 24000 x 4 months/12 months =$ 8000
Answer: Option (B)
Explanation:
A nonprofit organization is referred to as or known as a business organization which has been granted the tax-exempt by IRS since its is associated with a social cause and also tends to provide a public benefit. Donations which are made to the nonprofit organization are usually tax-deductible to the individual and organization that tends to make them. Also nonprofit organization does not pays any tax on the donations received.
For-profit corporation is referred to as or known as an organization that tends to aims at earning profit via its operations and thus is mostly concerned or inclined toward it's own interests.
Answer:
a) 28%
b) 56%
Explanation:
Data provided in the question:
Operating profit margin = 7%
Asset turnover ratio = 4
Now,
a) ROA = Profit margin × Asset turnover ratio
= 7% × 4
= 28%
b) Given:
Debt-equity ratio = 1
Interest payments = $8,200
Taxes = $8,200
EBIT = $21,000
Now,
Total assets = Net income ÷ ROA
Also,
Net income = EBIT - tax - interest
= $21,000 - $8,200 - $8,200
= $4,600
Thus,
Total assets = $4,600 ÷ 28%
= $16428.57
also,
Total assets = Debt + Equity
or
Total assets = Equity × (
)
or
$16428.57 = Equity × ( 1 + 1 )
or
=> Equity = $8214.28
Therefore,
ROE = Net income ÷ Equity
= $4,600 ÷ $8214.28
= 56%
Answer:
A. dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3,000
Explanation:
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Closing Value of the Allowance for Doubtful Accounts will be as follow
Closing Balance = $100,000 x 5% = $5,000
As Allowance for Doubtful Accounts already have credit balance of $2,000, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $5,000 at the year end.
Adjustment Value = $5,000 - $2,000 = $3,000
