Which of the following is a tertiary ratio that drives protability?

Which of the following would be relevant in the decision to sell or throw out obsolete inventory?

Rom4ik [11]

Answer:

D) No No

Explanation:

Direct material cost and fixed overhead cost assigned to inventory, both are irrelevant in the decision to sell or throw out obsolete inventory because these costs are already incurred and treated as sunk cost.

4 0

2 years ago

Which of the following strategies makes a profit when the stock price declines and loses money when the stock price increases? （

SIZIF [17.4K]

Answer:

Option D is correct option.

Short call and long put

Explanation:

Short call and long put = - max (S - K, 0) + max (K - S, 0);

As S declines, the payoff from long put position improves. As S increases, payoff from short call position loses money. This option satisfies the condition put in the question.

4 0

2 years ago

Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenan

ziro4ka [17]

Answer:

Soundgarden Company

Journal Entries:

July 10, 2020:

Debit Cash Account (or Accounts Receivable) $800,000

Credit Sales Revenue $800,000

To record the sale of 200 copiers at $4,000 apiece.

July 10, 2020:

Debit Warranty Expense $66,000

Credit Warranty Liability $66,000

To record the estimated warranty maintenance on copiers sold.

December 31:

Debit Warranty Liability $17,000

Credit Inventory $17,000

To record actual warranty costs incurred.

Explanation:

Soundgarden should record these transactions according to the matching principle, whereby warranty expense is recognized in the period that matches the sale so that all expenses related to sales are recognized when the sales are recognized. This is achieved by creating a warranty liability account after the sales and recording a warranty expense as the debit entry. When actual warranty costs are incurred, the Soundgarden Company will debit the warranty liability and credit the inventory actual for the actual costs.

7 0

2 years ago

A running shoe company wants to reach "avid marathon runners" instead of just "sports fans". which targeting method should this

fiasKO [112]

The correct answer:
Custom affinity audiences

Source, explanation and more answers: https://goo.gl/LkZN6c

3 0

2 years ago

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.

Nadya [2.5K]

Answer:

Purchase 12000 debit

Accounts Payable 12000 credit

--to record purchase--

Accounts Payable 1200 debit

Returns&Allowance 1200 credit

--to record returned goods--

Purchase 16000 debit

Accounts Payable 16000 credit

--to record purchase--

Purchase 20000 debit

Accounts Payable 20000 credit

--to record purchase--

Account Payable 16,000 debit

Purchase Discount 160 credit

Cash 15,840 credit

-to record payment within--

SECOND METHOD:

Purchase 11,760 debit

Accounts Payable 11,760 credit

--to record purchase--

Accounts Payable 1,176 debit

Returns&Allowance 1,176 credit

--to record returned goods--

Purchase 15,840 debit

Accounts Payable 15,840 credit

--to record purchase--

Purchase 19,600 debit

Accounts Payable 19,600 credit

--to record purchase--

Account Payable 16,000 debit

Cash 15,840 credit

-to record payment within--

interst expense 216 debit

account payable 216 credit

--to record interest incurred--

Explanation:

As we use periodic system we calculate the inventory and COGS at the end of the period so we use purchase and returns accounts rather than adjusting inventories in every transactions.

In the second method we use itnerest expense when the discount is loss.

interest incurred for the period:

(12,000 - 1,200) x 2% = 216

The secodn purchase at the end of the monthcan be paid within discount period therefore, we do not recognize interest expense yet.

3 0

2 years ago