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4 years ago

Fixed assets. A a building is one example. B spreading costs over time

Business

2 answers:

Gre4nikov [31]4 years ago

8 0

A a building is one example!

Naya [18.7K]4 years ago

6 0

Answer:

A a building is one example

Explanation:

Assets are items that have value and is used by a business to generate profit.

There are two types of assets: the current assets and fixed assets.

Current assets are those that can be used or consumed within a year. They include cash, accounts receivable, marketable securities, and prepaid expenses.

Fixed assets are assets that are used by a business for a long period of time.

They can be tangible such as buildings, equipment, and land.

They can also be intangible for example copyright, patents, and trademarks.

In this instance a building is an example of a fixed asset.

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Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance o

Greeley [361]

Answer:

Farley = $74,500

Clark = $73,500

b.1.

Dr Revenues 668,000

Cr Income summary 668,000

Dr Income summary 520,000

Cr Expenses 520,000

b.2.

Dr Income summary 58,000

Cr Martin Farley, drawing 58,000

Dr Income summary 16,500

Cr Martin Farley, capital 16,500

Dr Income summary 46,000

Cr Ashley Clark, drawings 46,000

Dr Income summary 27,500

Cr Ashley Clark, capital 27,500

they would have to divide proportionally based on their salary allowances:

Martin Farley = $58,000 / $104,000 = 55.77%

Ashley Clark = $46,000 / $104,000 = 44.23%

Explanation:

Martin Farley Ashley Clark

salary allowance $58,000 $46,000

income sharing ratio 3 5

withdrawals $58,000 $46,000

revenues $668,000

<u>expenses ($520,000)</u>

net income $148,000

a. Determine the division of $148,000 net income for the year.

$148,000 net income - $58,000 - $46,000 = $44,000

$44,000:

Farley = $44,000 x 3/8 = $16,500

Clark = $44,000 x 5/8 = $27,500

net income:

Farley = $58,000 + $16,500 = $74,500

Clark = $46,000 + $27,500 = $73,500

Dr Revenues 668,000

Cr Income summary 668,000

Dr Income summary 520,000

Cr Expenses 520,000

Dr Income summary 58,000

Cr Martin Farley, drawing 58,000

Dr Income summary 16,500

Cr Martin Farley, capital 16,500

Dr Income summary 46,000

Cr Ashley Clark, drawings 46,000

Dr Income summary 27,500

Cr Ashley Clark, capital 27,500

4 0

3 years ago

What is the difference between sole proprietor and self employed

Kitty [74]

Answer:

Self Employed is the person working in a self owned business. Sole Proprietor is a person solely owning, managing a business.

Explanation:

Self Employment is the term used to depict <u>economic activity</u> of working for self owned organisation, rather than working for someone else. The self owned organisation could be entirely (solely) self owned - sole proprietorship, or co-owned by partners in a limited liability partnership

Sole Proprietor is a business entity owned, managed, run by a single entrepreneur. It is a business legal term given to an <u>economic organisation. </u>In this case, the proprietor necessarily has unlimited liability towards firm's claims. However, its not so always in case of self employment in LLC

5 0

4 years ago

When working on a suspended scaffold 10 feet or higher above the working surface,or in a bucket truck or aeriel lift,what safety

rosijanka [135]

A strap yk just strap yourself to the buildings roof or use one of the belts you have to but on when indoor rock climbing

8 0

3 years ago

One of the reasons the corporation was valued above other forms of business ownership was that ______.

Elina [12.6K]

A corporation may be valued above other forms of business ownership by the fact that large amounts of capital could be raised by selling stock in the corporation.

<h3 /><h3>Advantages of selling stock</h3>

When a company decides to sell its shares on the market, it guarantees the raising of short-term capital that helps in its growth and expansion strategy, since there is an inflow of funds from the market.

Therefore, through the stock market, a company can satisfy its financial needs by attracting additional investors, avoiding debt and sharing the responsibilities of the business.

Find out more information about stock market here:

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5 0

2 years ago

Operating activities are most closely related to a. long-term assets. b. dividends and treasury stock. c. long-term liabilities

Licemer1 [7]

Operating activities are most closely related to current assets and current liabilities. Therefore, the correct answer is option 'D'.

The functions of a business that are directly related to providing goods and/or services to the market are referred to as operating activities.

Manufacturing, distributing, marketing, and selling a product or service are examples of core business activities.

Operating activities generate the majority of a company's cash flow and determine whether or not it is profitable.

Cash receipts from goods sold, payments to employees, taxes, and payments to suppliers are all examples of common operating activities.

These activities are detailed in a company's financial statements, particularly the income and cash flow statements.

Operating activities differ from investing or financing activities, which are functions of a business that are not directly related to the provision of goods and services.

Instead, financing and investing activities aid the company's long-term performance.

This means that a company's issuance of stock or bonds does not count as an operating activity.

Hence, the correct answer is 'D'.

Learn more about operating activities:

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8 0

2 years ago