Answer:
C. Proprietorship
Explanation:
A sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.
Basically, it is a type of business that is typically owned by an individual or one person and as such is solely responsible for its debts.
In this scenario, Christopher started a tutoring website and was later sued for copyright infringement by a publishing company.
As a result, Christopher had to close his business and sell all of the business's assets, including his car in order to settle the lawsuit. Thus, this an example of sole proprietorship business because he's only one that own the business and as such would bear the burden of any debt or liability alone.
On the above scenario, the <span>management of the company has engaged in </span>taking the firm private. This move of a stockholder/s is taking the stocks of the company for themselves. This is also called as "going private" meaning the shareholder are not going to deal their stocks in the stock market or an open market.
Answer:
1. Contribution margin per unit
= $80
2. Contribution margin ratio %
=25%
3. Break-even point units
= 6300 units
4. Break-even sales dollars= $2,016,000
Explanation:
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $320 - $240
= $80
2. Contribution margin ratio = Contribution margin per unit / Selling price per unit
= $80 / $320
= 25%
3. Break-even point in units = Fixed cost / Contribution margin per unit
= $504,000 / $80
= 6,300 units
4. Break-even point in sales dollars = (Fixed cost / Contribution margin per unit) X Selling price per unit
= ($504,000 / $80) X $320
= $2,016,000
Answer:
The original records (Option C) is the only option that gives evidence that the event has occurred. Lets assume you own a car, now how will you prove that you own the car. Of course you will show the ownership papers to tell relevant authority that you own this car. Likewise in the company, their is huge flow of data. The events occurring are recorded in the accounting system but their evidences are kept in the file. According to the International Standard on Auditing ISA 500, the evidence is must be reliable. This means the original records are always reliable because they are confirmations from the parties that are independent of the company's operations.
Answer:
Cash increases and Accounts Receivable decreases(D)
Explanation:
$1000 represents earned rental income that has been recognized as revenue in the previous month but yet to be paid by customer. Hence, this would have been debited to account receivable ledger.
Upon cash receipt in the current month, this will be debited to Cash Account(Increase) and credited to Account Receivables (to reduce receivable balance).
The effect of this transaction will only affect Statement of Financial Position under current assets by reducing receivables balance and increase cash balance.