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lutik1710 [3]
3 years ago
15

Assume you gave up a $60,000 per year job at an accounting firm to start your own tax preparation business. To simplify, assume

your tax personal obligations are the same whether you run your own firm or work for another firm. If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
Business
1 answer:
Rasek [7]3 years ago
3 0

Answer:

Accounting profit= $70,000

Explanation:

Giving the following information:

If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit

<u>The accounting profit does not include the opportunity cost of leaving the accounting job. In this case, the accounting profit is:</u>

Accounting profit= revenue - costs

Accounting profit= 75,000 - 5,000

Accounting profit= $70,000

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asmine Smith owns a condo worth $250,000, a car valued at $15,000, and miscellaneous assets worth $7,500. She owes $190,000 on t
tester [92]

Answer:

The total liabilities amounts to $200,000

Explanation:

The total liabilities of Asmine Smith is computed as:

Total Liabilities = Owing on Condo + Owning a Car

where

Owning on Condo is $190,000

Owning a Car is $10,000

Putting the values above:

= $190,000 + $10,000

= $200,000

Note: Sum Insured under the Insurance Policy, is neither a liability nor assets. And Premium paid is an expense, will be treated as Current Assets.

4 0
3 years ago
Demur Inc., a manufacturing company, has provided the following data for the month of April. The balance in the Work-in-Process
Verizon [17]

Answer:

$135,400

Explanation:

Given that,

Beginning Work-in-Process Inventory = $10,800

Ending Work-in-Process Inventory = $22,800

Direct materials cost = $63,800

Direct labor cost = $39,800

Actual manufacturing overhead cost = $40,800

Manufacturing overhead cost applied to Work-in-Process = $43,800

Prime cost = Direct materials cost + Direct labor cost

                  = $63,800 + $39,800

                  = $103,600

Factory cost = Prime cost + Manufacturing overhead cost applied

                     = $103,600 + $43,800

                     = $147,400

Cost of goods manufactured for April:

= Factory cost + Beginning Work-in-Process Inventory - Ending Work-in-Process Inventory

= $147,400 + $10,800 - $22,800

= $135,400

6 0
2 years ago
Your uncle Ben has applied for a loan of $240,000 from a local bank, and he thinks he will get a loan. However, he is not confid
vlada-n [284]

Answer:

Follows are the responses to these question:

Explanation:

Please find the complete question in the attached file.

Uncle Ben will have to select industrial machinery for customized furnishings, as the NPV of the project have result show to the S loan, such that uncle Ben can gain it if he opts to invest throughout the C loan of just $120,000 from the bank.

In Which only a $240,000 credit by Uncle Ben has also been issued by the bank, it can choose either local furniture exaggerations or regular fabric as Project C and Project S both are positively Verdict.

6 0
2 years ago
The effect of repurchasing stock using the cost method is to ______. (Check all that apply.) Multiple select question. decrease
jarptica [38.1K]

The effect of repurchasing stock using the cost method is to Increase Treasury Stock, Decrease stockholders' equity ,Decrease Assets.

<h3><u>What is Cost Method?</u></h3>
  • Certain investments are recorded using the cost method of accounting in a company's financial statements.
  • When an investor holds an investment that it has little or no control over—typically described as owning less than 20% of the company—they employ this strategy. On the balance sheet, the investment is listed as an asset at its historical cost.
  • The investor lists the investment's cost as an asset. Dividend income is recorded as income when it is received and appears on the income statement.
  • Depending on the investor's accounting principles, the receipt of a dividend also boosts the cash flow, either in the investing portion or the operational area of the cash flow statement.

Treasury stock, commonly referred to as treasury shares or reacquired stock, describes previously outstanding stock that the issuing corporation purchases back from stockholders. The effect of repurchasing stock using the cost method increases treasury stock.

Know more about Cost Method with the help of the given link:

brainly.com/question/14917620

#SPJ4

3 0
1 year ago
2. How do fund raising for corporate organization differ from non- corporate organization<br>​
r-ruslan [8.4K]

Answer:

see below

Explanation:

A corporation is considered a legal person. It is a form of business ownership that is separate from its owners. A  Non-corporation business has not gone through the incorporation process. As such, the business and the owner as considered as one entity.  A partnership and sole proprietorship are examples of non-corporations.

Raising funds for a corporation is much easier than for a non-corporation. A corporation raises funds through borrowing or by issuing shares to the public or existing shareholders in a private corporation. The money generated from issuing shares can be used to expand the business or meet outstanding debts.

A non-corporation relies on the owner's to fund business activities. If the owners don't have a good credit history, the business may face challenges obtaining loans.

4 0
2 years ago
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