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algol13
2 years ago
7

Al Dente Pasta Company overstated its inventory by $10 million at the end of 2021. The discovery of this error during 2022, befo

re adjusting or closing entries, would require:_______.
Business
1 answer:
MAXImum [283]2 years ago
7 0

Answer:

Retained earnings would be debited and inventory would be credited for $10 million each.

Explanation:

In the given scenario Al Dente Pasta Company overstated its inventory by $10 million.

This is an overstatement of assets of the company.

This also gives an understatement of the retained earnings of the company.

Adjusting entry in 2022 will now require Retained earnings would be debited and inventory would be credited for $10 million each.

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Careco Company and Audaco Inc are identical in size and capital structure. However, the riskiness of their assets and cash flows
LenKa [72]

Answer:

E) if the firm evaluates these projects and all other projects at the new overall corporate wacc, it will probably become riskier over time.

Explanation:

Before the merger, Audaco would have rejected any project with an IRR of less than 12% (more risky investments) while Careco only required a 10% IRR (less risky projects). But after the merger the combined WACC will be lower than Audaco's, but higher than Careco's. Therefore, the new merged company will start accepting more risky projects and that tendency will continue over time. Eventually, the company's WACC will have to adjust and increase, and the cycle will continue.

5 0
3 years ago
The price of bread goes up. What happens to DEMAND for butter?
nikklg [1K]

Answer:

A. The demand curve shifts to the left

Explanation:

Bread and butter are compliment goods. They offer the consumer a high utility when consumed together. An increase in demand for bread will increase the demand for butter.  Changes in the price of bread will affect the demand for butter.

An increase in the price of bread leads to a decrease in demand. Reduction in bread demand means that butter consumption will decline as there will be less bread to apply butter. A decrease in demand will prompt the demand curve to shift inwards.

3 0
3 years ago
National defense is a good that is non excludable and nonrival in consumption. Suppose that, instead of national defense being p
timama [110]

Answer:

Alan is better off by $15

Explanation:

the number of citizens in latvia = 10

if citizens were levied $10 each, total amount

= 10*10

=$100

each persons valuation = 100*0.25

= $25

$25 is also Alans valuation sice he is a part of this population.

since he contribited $10, his net gain would be

$25.00 - $10.00

= $15.00

Alan is better of by $15 in the tax system.

8 0
3 years ago
How does having a menu that is uniform around the country provide mcdonald's with economies of scale? how is menu planning made
slega [8]

Yes, a uniform menu allows for centralized planning and distribution without having to many different factories/suppliers.

Menu:

  • If the food menu is consistent, it can be said that economies of scale would be in effect. This is due to the fact that the fixed cost per unit actually gets to decrease, which then leads to a decrease in the average cost of production per unit as the sales volume keeps on increasing, giving the company a cost advantage and resulting in economies of scale. However, when extending to other nations, the menu planning becomes more difficult because local preferences and cultural norms vary widely. For example, beef is not allowed in India, thus the menu must be designed accordingly.
  • McDonald's benefits from economies of scale since customers can place larger orders to reduce the price of their food when there is a standard menu across the nation. The more of a good is produced, the lower the per-unit fixed cost is since these expenses are spread across a larger number of goods, according to Investopedia. Additionally, everywhere you travel in the nation, people are aware of what is on their menu.

Learn more about menu here brainly.com/question/24068570

#SPJ4

6 0
1 year ago
On July 4, Blossom's Restaurant accepts a Visa card for a $150 dinner bill. Visa charges a 2% service fee. Prepare the entry on
Tpy6a [65]

Answer:

The journal entry is shown below.

Explanation:

According to the scenario, the journal entry for the given data are as follows:

Journal entry

Jul.4 Cash A/c Dr    $147

        Card charges A/c Dr.   $3

        To Sales revenue A/c   $150

(Being card transaction is recorded)

Computation:

Cash = $150 - 2% × $150 = $147

Card charges = $150 × 2% = $3

3 0
2 years ago
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