Answer:
Statement B is correct.
Explanation:
High Operating Leverage represents higher fixed cost in comparison to variable cost, and thus that means the company will get its break even earlier or we can say with low units, but after break even profits will be higher.
As in the given case Firm A has higher Operating Leverage than Firm B, thus Firm A has lower Break even point but eventually its profit after reaching break even will grow higher.
Thus, Statement B is correct
Answer:
Given that,
Total prepaid insurance = $6,700
Monthly insurance:
= Total prepaid insurance ÷ 4 months
= $6,700 ÷ 4 months
= $1,675
Insurance expense for two months:
= $6,700 - $1,675
= $5,025
Therefore, the adjusting entry required on December 31 is as follows:
Insurance expense A/c Dr. $5,025
To Prepaid insurance $5,025
(To record the adjusting entry for the insurance)
Answer: This loan would would have priority over the other unsecured claims in this bankruptcy case.
Explanation:
Since the trucks are secured collateral the loan is a secure loan. It will be the priority in the bankruptcy case since the other claims were unsecured. The law firm would have a right to the trucks since he owed them 20,000$ and put them up as collateral.
Everything that was an unsecured loan does not have anything to take from and will be a loss for the other companies who filed against Henry Anderson.
C. Those who have the most deductions
