<u>Answer: </u>a credit to a liability
<u>Explanation:</u>
Credit to liability is recorded when a firm knows that it will loose in its case and it has to pay compensation for the law suit. The payment for the law suit is a liability to the firm.
Titan company's attorney has mentioned that the company would probably lose in the law suit and would have to pay an amount of $200,000. This amount will recorded as the credit to liability in the books of Titan Company.
Answer:
Should Manny send his client the bill in December or January?
Send the bill in January because in cash method accounting recognized when payments are made.
In december he recognized only income because is in advance.
Explanation:
The cash method of accounting requires that sales be recognized when cash is received from a customer, and that expenses are recognized when payments are made to suppliers.
Answer:
The weighted average cost of capital of Kelso's is 12.06%
Explanation:
The weighted average cost of capital (WACC) is a measure of the company's cost of capital in which each capital is weighted proportionally.
WACC is calculated by:
D/E = 0.62
E = 1
D = 0.62
V = 1.62
WACC =
WACC = (1/1.62)(0.163) + (0.62/1.62)(0.0521)
WACC = 0.1206, or 12.06%
Answer:
Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to correct it.
Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to correct it
The internal control weakness is that the credit department receives incoming cash from the customers.
With access to cash,
a credit department employee can pocket
cash received from a customer
destroy the remittance slip
The credit department can then write-off the customer's account as noncollectable, and the company will stop pursuing collection from the customer
Explanation:
She can use images to show the team the the products they plan to launch.
She can also add a graph to show where these products will be most popular.