Answer:
Retained Earnings
Explanation:
The statement of retained earnings is prepared after preparing the income statement but before preparing the balance sheet. The reason behind this is that the statement of retained earnings is used to calculate the amount of retained earnings at the end of the period to be shown in the balance sheet.
Answer:
Explanation:
Let:
So:
This is an equation of a line. Let's represent it in its Slope–intercept form:
In order to find the intercept of the budget line on the Tequila axis, we need to evaluate the function for x=0, so:
Answer:
the answer to your question is a
Answer:
Option B: $30,000 Impairment Loss of Machinery
Explanation:
IAS 36 – Impairment of Assets states that an asset is considered to be impaired if the Carrying Amount of an asset is greater than the Recoverable Amount. Recoverable Amount of an asset is the higher of Fair Value less Cost to Sell and Value-in-Use.
Fair value less cost to sell is defined as the amount receivable from sale of assets less the cost of disposal, whereas Value in Use is defined as the present value of future cash flows from using an asset,
In case of Kohlman Company, recoverable amount of Machinery will be $350,000 i.e. Value in Use (future cash flows) as it is greater than the Fair Value of Machinery. The book value of machinery $380,000 exceeds the recoverable amount of $350,000. Therefore, the asset is considered to impaired and must be written down by $30,000 ($380,000 - $350,000 = $30,000). The impairment loss is charged to profit and loss account.
Journal Entry to record impairment loss:
DR Profit & Loss Account $30,000
CR Equipment $30,000
Answer:
14.29
Explanation:
Given
Reserve Ratio (R) = 7.00%
Required
Calculate the deposit multiplier (M)
To calculate simple money multiplier (M), we make use of the following formula.
M = 1/R
Where
R represent the reserve ratio
Substitute 7.00% for R
M = 1/7.00%
Convert % to decimals
M = 1/0.07
M = 14.29 ---- Approximated
Hence, the simple money multiplier is 14.29
