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3 years ago

The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:

Business

1 answer:

Gemiola [76]3 years ago

3 0

Answer:

c. (140,000)

Explanation:

Effect on net income of dropping the North Division:

Sales $(900,000)

Variable expenses $450,000

Contribution margin $(450,000)

Traceable fixed expenses $260,000

Effect on net income ($190,000)

Since the North Division currently have Net operating income (loss) of ($50,000), so therefore, after dropping the North Division, the overall company net operating loss will be $140,000 ($50,000 - $190,000).

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US GAAP and IFRS differ on treatment of impairment of tangible assets as follows:

erik [133]

Answer:

A. IFRS, tangible assets are tested only when factors suggest impairment.

Explanation:

The tested of the tangible assets would be based on some kind of changes that are change in the market value, chnage in the technology, rise or reduction in the rate of interest in the market etc

In addition to this, the intangible assets such as goodwill would be testes on annually basis

Therefore the first option is correct

7 0

3 years ago

Assume the spot rate of the British pound is $1.73. The expected spot rate 1 year from now is assumed to be $1.66. What percenta

Alexandra [31]

Answer:

The correct answer is 4.05%.

Explanation:

According to the scenario, the given data are as follows:

Spot rate = $1.73

Expected spot rate after 1 year = $1.66

So, we can calculate the depreciation percentage by using the following formula:

Expected Depreciation = (Expected spot rate after 1 year - Spot rate) / Spot rate

So, by putting the value

= ($1.66 – $1.73) / $1.73

= - $0.07 / $1.73

= - 4.05%

Hence, the depreciation percentage is 4.05%.

8 0

3 years ago

Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether each item increases o

Alborosie

Answer:

1. Dividends = It will be classified as dividends.

2. Rent Revenue = It will be classified as revenues.

3. Advertising Expense = It will be classified as an expense.

4. Stock holders pay cash into business = It will be classified as Issuance of stock.

Dividends are the share of revenue distributed to stockholders.

Revenues are income earned by the company.

Expense are the outflow of cash or bank payments for running the business.

Issuance of stock refers to collection of money by the company through issuing equity or preference shares.

4 0

4 years ago

Type the correct answer in the box. Spell all words correctly

Otrada [13]

Answer:

Explanation:

Dyslexia is a common learning difficulty affecting both children and adults. While no two individuals struggle with the same symptoms, generally people with dyslexia must work harder than their others to develop literacy skills.

They usually need more time to read and write, and go through series of frustration navigating numbers.

Therefore it will be best for Nathanael to use diagrams in his adverts to convey the message the company is trying to get across, because Individuals with dyslexia have more of a visual mind.

Also using less words and highlighting keywords with bright colours will make it clearer.

6 0

3 years ago

In the local paper, a car dealership advertises a small used car for a great price and a low interest rate loan. When Patrice co

Shkiper50 [21]

Answer:

False advertising.

Explanation:

The car dealership is showing some advertising that caughts public atention because it offers lower rates and cheap prices for a product that it may not even exist. This is why is called false advertising, because at the time costumer arrives to the dealership asking for the car advertised, they try to sell a different product that is even more expensive.

5 0

3 years ago