1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Karolina [17]
2 years ago
9

When we are doing the double entry for the closing inventory, why do we credit the inventory? I understand why we debit the clos

ing inventory but not why we credit it.
Business
1 answer:
anastassius [24]2 years ago
3 0

Answer:

Debiting in this case means to add to the inventory. Therefore, crediting means that inventory was used up when closing inventory.

Explanation:

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. ... A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

You might be interested in
Who do you like better?? BTS or BlackPink???
Snowcat [4.5K]

Answer:

bts, you? (:

Explanation:

3 0
3 years ago
Assume Evco, Inc., has a current price of $50 and will pay a $2 dividend in one year, and its equity cost of capital is 15%. Wha
gtnhenbr [62]

Answer:

The expected price after 1 year would be$55.5

Explanation:

According to the given data,

Price of the stock (Po) = $50

Dividend after 1year (D1) = $2

Equity cost of capital (KE) =15%

The formula for calculating the price after 1 year i.e.,(P1 ) is

                         

                          Po = (D1 + P1 )/ 1+KE                                      $50= ($2 + P1) / (1+0.15)

                        P1 = [$50(1.15)] - $2 = $55.5

6 0
2 years ago
Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods ag
Alina [70]

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. The document which is applicable here is an A. <u>insurance certificate.</u>

<u />

Explanation:

  • A certificate of insurance is a document used to provide information on specific insurance coverage.
  • The certificate provides verification of the insurance and usually contains information on types and limits of coverage, insurance company, policy number, named insured, and the policies' effective periods
  • Certificate of Insurance is a summary document usually issued by an agent on behalf of an insurer that says a policy has been issued to an insured for a general type of risk.
  • The Certificate is usually issued to a third party who wants some evidence or assurance that a policy has been issued.
  • A certificate of insurance is requested when liability and large losses are a concern.
  • Most commercial leases require the tenant to provide certificates of insurance or other evidence of insurance. Certificates of insurance are typically issued by an agent or broker for the named insured and set forth the coverages written for the insured
5 0
3 years ago
In its most recent financial statements, Del-Castillo Inc. reported $30 million of net income and $970 million of retained earni
Andrew [12]

Answer:

the firm pay 39 millions dividends to his shareholders during the year.

Explanation:

The retained earnings identity is as follow:

beginning RE + net income - dividends = ending RE

we plug our values into the formula:

970 + 30 - dividends = 961

we clear dividends:

970 + 30 - 961 = dividends

And solve:

dividends = 39

<u>Notes:</u>

For every account, we always have this similar identity:

a beginning balance

a type of transaction that increase their balance

another kind of transaction which decreased

and a final balance which is the net of the previous.

beginning + increase - decrease = ending

Always try to identify how each transaction impact the account and from there, setup the equation.

8 0
3 years ago
Your parents want to place money in an account so that you can withdraw $200 a week for the next four years while you finish col
professor190 [17]

Answer:

The answer is: $38,429

Explanation:

You need to withdraw 208 payments (52 weeks x 4 years)

Each payment is $200

Discount interest is 0.0769% (4% yearly interest / 52 weeks)

So the present value of the cash flow is: PV = $38,429

The best way to calculate the PV is to use an excel spreadsheet and the NPV formula:

=PV(0.0769%,L1:L208) where L1 to L208 all equal 200

4 0
3 years ago
Other questions:
  • You are 50 years old and proud of having $75,000 invested in a mutual fund earning an impressive 17% per year. you want to retir
    13·1 answer
  • company has bonds outstanding with a par value of $110,000. The unamortized premium on these bonds is $2,585. If the company ret
    10·1 answer
  • The accounting procedures for sole proprietorships are the same as for partnerships except
    12·2 answers
  • Neumann Corporation is planning to issues bonds with a face amount of $2 million. If Neumann's accountant, Betty, wants to calcu
    9·2 answers
  • You own a portfolio that has $3,300 invested in Stock A and $4,400 invested in Stock B. Assume the expected returns on these sto
    8·1 answer
  • HELPPP PLEASEEEE
    13·1 answer
  • Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies split the market and e
    9·1 answer
  • term fixed price contract to build an office tower for​ $10,000,000. In the first year of the contract Tullis incurs​ $3,000,000
    11·1 answer
  • The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Acco
    13·1 answer
  • Accounting systems that use standards for product costs are called budgeted cost systems. True False
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!