Answer:
A. Unaffected
B. Unaffected
C. Understated
D. Overstated
Explanation:
C. Understated.
Understated balance is one that is reported as having a lesser balance than it actually does. example of what could cause the situation in which cash is understated is that when check is written on the disbursing bank on the last day of December with a credit to cash, and an associated debit to some expense account so as to decrease reported profits and taxes be it (direct or indirect tjaxes) for the year.
Another example is when a utility bill that is suppose to be paid by the last day of the month but failed to record the expenses, under the accrual basis of accounting, the company should recognize the expenses now even though the bill is not yet due. Until the bill is recorded, the utilities payable is understated
d. Overstated.
An overstated balance is an account balance that is reported as having a greater balance than it actually does, example of such situation is that in which an employee has misappropriated funds during the year, and draw a check transferring funds to the account with the shortage so as to cover the shortage. As of December 31, the shortage is replaced, with no reduction as yet recorded in the account on which it is drawn.
In second example of understated, expense account is understated and because of this net income is overstated.
Answer:
The proportion of the investment is 100%.
Explanation:
This can be calculated using the following formula:
Rportfolio = (y * Rrisky) + ((1 - y) * Ttbill) ..................... (1)
Where;
Rportfolio = Overall portfolio expected rate of return = 15%. or 0.15
Rrisky = risky portfolio expected rate of return = 15%, or 0.15
Ttbill = T-bill rate = 10%, or 0.10
Substituting the values into equation (1) and solve for y, we have:
0.15 = (y * 0.15) + ((1 - y) * 0.10)
0.15 = 0.15y + 0.10(1 - y)
0.15 = 0.15y + 0.10 - 0.10y
0.15 - 0.10 = 0.15y - 0.10y
0.05 = 0.05y
y = 0.05 / 0.05
y = 1.00, or 100%
Therefore, the proportion of the investment is 100%.
Answer:
Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
Cash $100,000 Accounts Payable $100,000
Inventory $200,000 Dennis, Capital $120,000
Lilly, Capital $80,000
$300,000 $300,000
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, and the remaining accounts payable are paid. Cash is distributed at the end of each month, and the liquidation is completed at the end of the second month.
1. Using a safe payments schedule, how much cash will be distributed to Dennis at the end of the first month?
a. $36,000
b. $64,000
c. $60,000
d. $24,000
2. Using a safe payments schedule, how much cash will be distributed to Lilly at the end of the first month?
a. $40,000
b. $24,000
c. $64,000
d. $16,000
It bettered their relationship
do you have answer choices
Answer:
Explanation:
The journal entries are shown below:
On January 31
Allowance for doubtful accounts A/c Dr $800
To Account receivable A/c $800
(Being the written off amount is recorded)
On January 31
Account receivable A/c Dr $300
To Allowance for doubtful accounts A/c $300
(Being the reverse entry is made)
On March 9
Cash A/c Dr $300
To Accounts receivable A/c $300
(Being the amount is collected)
