Answer:
B) Sales discounts.
Explanation:
Sales Discount is a contra revenue account which is adjusted in the sales to calculate the net sales value.
As the following transaction is already been recorded at the time of sale
Dr. Account receivable xxxx
Cr. Sales xxxx
Sales account will not be debited to adjust the transaction. we will record this transaction in sales discount account which will ultimately adjusted.
Answer:
True
Explanation:
Product costs are the costs directly incurred from the manufacturing process. The three basic categories of product costs they are;
1) direct material
2) direct labour
3) manufacturing (factory) overhead.
Manufacturing overhead cost also include the following;
a) indirect labour: Indirect labor is the labor of those who are not directly involved in the production of the products.
b) indirect material: Indirect materials are materials that are used in the production process but that are not directly traceable to the product.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400.
A) Straight-line:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (251,800 - 3,400)/3= $82,800
B) Double declining balance:
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Year 1= (248,400/3)*2= 165,600
Year 2= 55,200
Year 3= 18,400
Answer: Negligence of duties
Explanation:
As a board member it's one of his primary duty to keep abreast of the firm performance. Not been aware for a year on the excuse of not been informed and not seeking to find out personally shows a negligence of duties.
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
