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pickupchik [31]
3 years ago
6

The margin of safety ratio is computed as actual sales divided by break-even sales. is used to determine the break-even point. i

ndicates what percent decline in sales could be sustained before the company would operate at a loss. measures the ratio of fixed costs to variable costs.
Business
1 answer:
max2010maxim [7]3 years ago
8 0

Answer:

indicates what percent decline in sales could be sustained before the company would operate at a loss.

Explanation:

Since, Margin of safety ratio = Expected Sales - Break even sales

therefore,

The correct statement is : The margin of safety ratio indicates what percent decline in sales could be sustained before the company would operate at a loss.

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The bookkeeper for Mustang Company forgot to make the end-of-the-period adjustment for the interest expense that had accrued dur
yawa3891 [41]

Answer:

C Liabilities are understated, and net income is overstated.

Explanation:

To accrue for interest expense, the required entries are;

Debit Interest expense (p/l)

Credit Accrued Interest (B/s)

Being entries to recognize accrued interest expense.

If this is not posted, liabilities and expenses for the period would be understated. As such, net income would be overstated.

Hence the right answer is C Liabilities are understated, and net income is overstated.

4 0
3 years ago
Cyan Corporation (E & P of $700,000) has 4,000 shares of common stock outstanding. The shares are owned as follows: Angelica
pshichka [43]

Answer:

Part - (a)  

Since A constructively holds stock through her son and a prohibited interest within the 10 years of divestment, she will not receive a favorable treatment.

Part - (b)  

The sale may qualify for redemption if A decides to become a creditor within a 10 years period. Creditors do not hold prohibited interest in corporations, typically because they hold no voting rights.

Part - (c)  

The act of replacing, or office held by a family member, does not constitute a prohibited interest. Therefore: the sale should qualify.

Part - (d)  

Accepting the stocks as gift would trigger a prohibited interest. The size of the gift and her son's shares and will nullify the 10 year rule.

3 0
3 years ago
Read 2 more answers
No entries shall be allowed for district meets which are not submitted to the director on or before the ____ day before the firs
allochka39001 [22]

No entries shall be allowed for district meets which are not submitted to the director on or before the fifth day before the first day of the meet.

<h3><u>What is the role of a director?</u></h3>
  • An organization's directors play a crucial role in governance on behalf of its shareholders or members.
  • The legal obligations that each Director must uphold during their tenure are outlined in various pieces of legislation. However, Directors are also held personally responsible for exceeding 700 more laws and legal standards.
  • Each director must acknowledge and support the following standards of conduct:
  • To accept personal accountability for contributing objectively and without regard to one's own interests to the Board's choices.
  • To proactively seek out sufficient knowledge about the organization's operations.
  • To constructively contribute to the formulation of pertinent organizational policies.
  • To give the organization's long-term strategies solid support.

In order to encourage good governance and guarantee that each director acts in the interests of the company's stakeholders, the legally based director duties were created. 

Know more about Directors with the help of the given link:

brainly.com/question/14279294

#SPJ4

8 0
1 year ago
Exercise 4-9 Recording purchases, sales, returns, and shipping LO P1, P2 Following are the merchandising transactions of Dollar
GenaCL600 [577]

Answer:

Dollar Store

Journal Entries:

Nov. 1 Debit Inventory $2,900

Credit Accounts Payable $2,900

To record the purchase of goods on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.

Nov. 5 Debit Accounts Payable $2,900

Credit Cash $2,842

Credit Cash Discount $58

To record the payment for the goods, including discounts.

Nov. 7 Debit Cash $250

Credit Inventory $250

To record the return of goods for cash.

Nov. 10 Debit Freight-in $145

Credit Cash $145

To record payment for transportation of goods.

Nov. 13 Debit Accounts Receivable $3,132

Credit Sales Revenue $3,132

To record the sale of goods with terms n/30.

Debit Cost of goods sold $1,566

Credit Inventory $1,566

To record the cost of goods sold.

Nov. 16 Debit Sales Returns $270

Credit Accounts Receivable $270

To record the return of goods.

Debit Inventory $135

Credit Cost of goods sold $135

To record the cost of goods returned.

Explanation:

a) Data and Analysis:

Nov. 1 Inventory $2,900 Accounts Payable $2,900

on terms of 2/5, n/30, FOB shipping point, invoice dated November 1.

Nov. 5 Accounts Payable $2,900 Cash $2,842 Cash Discount $58

Nov. 7 Cash $250 Inventory $250

Nov. 10 Freight-in $145 Cash $145

Nov. 13 Accounts Receivable $3,132 Sales Revenue $3,132

with terms n/30

Cost of goods sold $1,566 Inventory $1,566

Nov. 16 Sales Returns $270 Accounts Receivable $270

Inventory $135 Cost of goods sold $135

8 0
3 years ago
A customer purchases 8M of City of Los Angeles 4% G.O.'s, maturing in 2038 at 95. The interest payment dates are Jan 1st and Jul
Temka [501]

Answer:

The amount customers are expected to pay $7600 per bond

Explanation:

8M implies that the municipal bond has  $8000 as its par value.

The amount a customer would is 95% of the par value

Hence, customers are expected to pay $7600 (95%*$8000)

For instance a 5M at 105 means that the par value of the bond is $5000 but issued at 105%, which translates into $5250 without considering commissions as well as the accrued interest on the bond which might also be factored into the price.

6 0
3 years ago
Read 2 more answers
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