The document that lists the steps of the budget process is the

In 2007, Wagner Associates appropriated $65,000 of retained earnings to satisfy the restrictive covenant of a loan agreement. Wh

Dmitry [639]

Answer:

The financial statements effects of the appropriation are as follows:

a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.

b) Cash balance will also reduce by $65,000 in the Balance Sheet.

Explanation:

Normally, partnerships can distribute or appropriate their profits according to their partnership agreements. However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners. The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.

Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants. Some restrictive covenants may specify the minimum cash balance to maintain. Restrictive covenants, generally, remain measures to overcome unwanted business outcomes. It is a form of insurance against loan repayments.

8 0

3 years ago

Read 2 more answers

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, a

WINSTONCH [101]

Answer:

Deoro Company

1. Unit cost using direct labor hours to apply overhead:

Unit Cost

Model A $167.985

Model B $226.99

2. Unit cost using the four activity drivers:

Unit Cost

Model A $133.97

Model B $287.28

3. Activity-based costing method always produces the more accurate cost assignment.

Explanation:

a) Data and Calculations:

Activity Expected Cost Activity Driver Activity Capacity

Setting up equipment $548,080 Number of setups 680

Ordering costs 313,200 Number of orders 17,400

Machine costs 939,400 Machine hours 42,700

Receiving 343,000 Receiving hours 9,800

Total overhead costs $2,142,680

Activity Rates:

Setting up equipment $806 per setup ($548,080/680)

Ordering costs $18 per order ($313,200/17,400)

Machine costs $22 per machine hour ($939,400/42,700)

Receiving $35 per receiving hour ($343,000/9,800)

Model A Model B

Direct materials $600,000 $800,000

Direct labor $480,000 $480,000

Overhead applied $1,063,500 $1,018,200

Total costs $2,143,500 $2,298,200

Units completed 16,000 8,000

Cost per unit $133.97 $287.275

Direct labor hours 6,000 2,000

Number of setups 400 200

Number of orders 6,000 12,000

Machine hours 24,000 18,000

Receiving hours 3,000 7,000

The company's normal activity is 8,000 direct labor hours.

Assignment of overhead costs:

Model A Model B

Number of setups $322,500 (400 * $806) $161,200 (200 * $806)

Number of orders 108,000 (6,000 * $18) 216,000 (12,000 * $18)

Machine hours 528,000 (24,000 * $22) 396,000 (18,000 * $22)

Receiving hours 105,000 (3,000 * $35) 245,000 (7,000 * $35)

Total overhead applied $1,063,500 $1,018,200

Overhead based on direct labor hours:

Total overhead costs = $2,143,680

Total direct labor hours = 8,000 (6,000 + 2,000)

Overhead rate per DLH = $267.96

Allocation of overhead:

Model A Model B

Direct labor hours 6,000 2,000

Overhead (DLH) $1,607,760 ($267.96 *6,000) $535,920 ($267.96 * 2,000)

Model A Model B

Direct materials $600,000 $800,000

Direct labor $480,000 $480,000

Overhead applied $1,607,760 $535,920

Total costs $2,687,760 $1,815,920

Units completed 16,000 8,000

Cost per unit $167.985 $226.99

4 0

3 years ago

In the context of the different techniques used by an inference engine to manipulate a series of rules, _____ refers to a series

Volgvan

In the context of the different techniques used by an inference engine to manipulate a series of rules, <u>forward chaining</u> refers to a series of "if-then-else" condition pairs.

<h3>What is an inference engine? </h3>

An inference engine is a part of the system that applies logical rules to the knowledge base to deduce new information. The first inference engines were components of expert systems.

Therefore, the correct answer is forward chaining.

learn more about forward chaining: brainly.com/question/15303791

#SPJ12

4 0

2 years ago

The name for computations that allow you to determine how much money to deposit now to earn a desired amount in the future is

nydimaria [60]

Answer:

Future value

Explanation:

The name for computation that allows you to determine how much money to deposit now to earn a desired amount in the future is "Future value." Future value is the equivalent of an asset at a particular date. It estimates specific nominal future sum of cash that an invested sum of money is "worth" at a stipulated period in the future considering a specific interest rate, or more commonly, rate of interest; it is the immediate price multiplied by the aggregation function.

5 0

3 years ago

Which of the following are the three characteristics that an advertising appeal should have? A. humorous, memorable, and interes

mihalych1998 [28]

Answer: (E) Meaningful, believable, and distinctive

Explanation:

The advertising appeal is one of the type of communication process in which the the various types of organizations and the companies using this business strategy for promoting their brands and the products in the market.

The main objective of the advertising appeal is to creating awareness and inform customers or users about the new brands, various types of products and the services in the market.

According to the given question, there are mainly three type of characteristics of the advertising appeal that are as follows:

Meaningful
Distinctive
Believable

The main aim of the meaningful characteristic is to make the product more interesting to the customers by highlighting its various types of meaningful advantages. Distinctive makes the product unique from all the products available in the market and believable appeal ensure the customer about the accurate delivery of the products.

Therefore, Option (E) is correct answer.

6 0

3 years ago