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2 years ago

Match each type of adjusting entry with its definition.

Business

1 answer:

NeTakaya2 years ago

8 0

Answer and Explanation:

The matching is as follows:

1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period

2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future

3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period

4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period

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3 years ago

Which is the new crime created by Sarbanes-Oxley? a. mail fraud b. obstruction of justice c. certification of false financial st

meriva

Answer:

The correct answer is letter "C": certification of false financial statements.

Explanation:

The Sarbanes-Oxley Act (SOX) is a statute that aims to increase corporate governance and enhance internal control of companies. SOX's primary purpose is to protect stakeholders from false corporate financial statement representations. Investors must know that the financial information on which they rely is accurate and that their accuracy has been checked by an independent third party.

Altering, destroying, covering-up or falsifying information in the financial statements of a firm is considered a crime since the SOX implementation with a maximum sentence of 20 years.

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2 years ago

Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend was $2.27 a share. Dividen

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Answer:

Dividend yield=10.3%

Explanation:

Mv=Do(1+g)/(Ke-g)

MV=?

Do=2.27

g=2.1%

Ke=14.56%

Mv=2.27(1+2.1%)/(14.56%-2.1%)

MV=2.75/(12.46%)

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Dividend yield=dividend per share/share price per share

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3 years ago

Russell Preston delivers parts for several local auto parts stores. He charges clients $1.30 per mile driven. Russell has determ

Lapatulllka [165]

Answer:

A. Determine how many miles Russell needs to drive to break even?

break even formula = total fixed costs / contribution margin

total fixed costs = $1,220
contribution margin = $1.30 - $0.29 = $1.01

break even formula = $1,220 / $1.01 = 1,207.9 ≈ 1,208 miles

B. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.

if he drove 2,500 he made a profit because it is more than the break even point.

C. Determine how many miles Russell must drive to earn $2,135.00 in profit.

($1,220 + $2,135) / $1.01 = 3,321.7 ≈ 3,322 miles

D. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month.

total revenue $3,250

- variable costs ($725)

contribution margin $2,525

- fixed costs ($1,220)

net income $1,305

E. Use the above information to calculate Russell’s degree of operating leverage.

Degree of operating leverage = contribution margin / operating income = $2,525 / $3,250 = 0.7769 or 77.69%

8 0

3 years ago

Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommo

DiKsa [7]

Answer:

$236,250

Explanation:

The computation of external financing is shown below:-

For computing the external financing first we need to find out the retained earning which is shown below:-

Net income = Sales × Profit margin

= $2,500,000 × 15%

= $375,000

Increase in retained earning = Net income - Dividends

= $375,000 - ($375,000 × 35%)

= $375,000 - $131,250

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External financing = Increase in assets - Increase in retained earning

= $480,000 - $243,750

= $236,250

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3 years ago