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Nastasia [14]
2 years ago
11

Belle Co. received merchandise on consignment. As of March 31, Belle had recorded the transaction as a purchase and included the

goods in inventory. The effect of this on its financial statements for March 31 would be
Business
1 answer:
mihalych1998 [28]2 years ago
8 0

Answer:

net income was correct and current assets and current liabilities were overstated.

Explanation:

As the Belle company received the merchandise on the consignment also it is recorded as the purchase and get involved the goods in the inventory

So here the impact on the financial statement as on March 31 would be that the net income would be right but the current asset and the current liabilities would be overstated.

hence, the same is to be considered

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On February 1, 2020, Nelson Corporation purchased a parcel of land as a factory site for $320,000. An old building on the proper
Sergeu [11.5K]

Answer:

$335,000; $1,425,000

Explanation:

Record cost of the land as follows:

= Cost of purchasing parcel of land + Demolition of old building + Legal fees - value of Salvaged materials sold

= 320,000 + 20,000 + 5,000 - 10,000

= $335,000

Record cost of the new building as follows:

= Architect's fees + Construction costs

= 35,000 + 1,390,000

= $1,425,000

4 0
3 years ago
Based on this income statement for Company ZYX for the year ending December 31, 2014, what adjustment would need to be made to N
Minchanka [31]

Answer:

Company ZYX cash flow from Operating Activities using the indirect method are given below.

<em>Cash flow from operating activities</em>

Net INCOME BEFORE TAXES                        $ 190,000

Adjustment For

Gain(Loss) on sale of Equipment                   $  30,000

Other Income/(Expense)                                 ($  46,000)

Working capital changes                                     0

Net cash from operating activities                 $ 174,000

3 0
3 years ago
2. Which statement about the factors of production is correct?
Charra [1.4K]

Answer:

A) A river from which a company draws water is called land.

Explanation:

There are mainly<u> 4 Factors of Production</u> and these are:

<em>1. Labor </em>

<em>2. Land </em>

<em>3. Capital</em>

<em>4. Entrepreneurship</em>

  • <u>Labor doesn't refer to the owner of the company.</u> It refers to the <em>work that is being done in order to finish a particular project or work</em>. This makes choice D incorrect.
  • An enterprise refers to the entire company or business. It doesn't limit itself to the supervisors involved. This makes choice C incorrect.
  • <u>Capital in the form of money is not a factor of production.</u> Raising finance for a company means raising money. An example of capital as a factor of production is<em> purchasing an equipment for commercial/business purposes</em>. This makes choice B incorrect.
  • When it comes to "land" as a factor of production, it refers to the natural resources, which means it includes not only the forests, mountains and the like but <em><u>also the oceans, rivers, lakes, etc. </u></em>as long as it is being used in the production process. This makes choice A correct.
8 0
2 years ago
5. If a company had $15,000 in net income for the year, and its sales were $300,000 for the same year, what is its profit margin
Alika [10]

Answer:

5%

Explanation:

Net income is $15,000

Sales is $300,000

The profit margin can be calculated as follows

= 15,000/300,000

= 0.05×100

= 5%

Profit margin is 5%

7 0
3 years ago
How do changes in the money supply affect people and businesses?<br><br>(please help! 80)
slega [8]
Increase in money supply will result to result to lower interest rates. These will encourage individuals and business to avail of loans since interest rates are low. However, proper computation must be made in order to determine the level of increase in money supply. Unchecked increase in money supply may result to inflation.

Decrease in money supply will result to higher interest rates. Higher interest rates will encourage individuals or businesses to deposit their money in the banks because their deposits will earned high interests.
6 0
3 years ago
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