Answer: A) Income Summary
Explanation:
The Income Summary account is used to compile temporary accounts before posting them to capital accounts. Revenues, Expenses and Cost of Goods are temporary accounts which will be compiled in the Income summary account.
The Income summary account has a debit and a credit side with income going on the credit side and expenses going on the debit side. If the credit side is higher than the debit side then profits have been made. The reverse is true.
Answer:
- Receiving five cents for recycling glass bottles
- Parking fines for illegal parking
- Tax breaks for 401(k) retirement contributions checked
Explanation:
Recycling is good for the environment and also means companies spending less because they wouldn't have to reproduce the recycle material from scratch. Paying a person money for recycling the glass bottles is an incentive that is meant to encourage them to do it more.
Not all incentives are positive however. Some are negative and aimed at reducing a behavior. Fining people for illegal parking is an example as the logic is that the offending party will think of the fines the next time they want to park illegally and refrain from it.
Offering tax breaks to a person in order to get them to save is an incentive because they are being offered to keep more of their money if they save more.
Answer:
False
Explanation:
Traditionally, department stores sold both soft goods and hard goods. But now, most department stores focus almost exclusively on soft goods.
Soft goods refers generally to clothing and other textiles like bedding and fabrics.
Hard goods refers to a broad range of products like appliances, furniture, tools, electronics, etc.
Answer:
$1,600
Explanation:
Best deals incorporation has a total of 10 units in the ending merchandise inventory on December 31
The units were bought in the month of November at a price of $160 for each unit
The replacement cost of the item is $162
Inventory is always recorded when the cost is low
Therefore, the amount that is to be reported as the merchandise inventory can be calculated as follows
=10 units × $160
= $1,600
Hence the amount reported as the merchandise inventory on the balance sheet is $1,600
Answer:
A good use of free cash flow is to Invest in nonoperating assets
Explanation:
Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.
If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.
A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)
