Answer: You are trying to find out if the statement is true or false? It is FALSE.
Explanation: Analysts should be concerned with the material movements in the company's financial statements. Although as stated in the question, small changes could amount to material movement but that applies in situations where there is a huge outflow but at the same time, there is similar inflow, so the net effect is negligible on a particular financial statements line item. This instance is not relevant to financial analysts but only the concern of internal control and or internal audit.
Financial analysts are interested in what the key drivers of the financial statements are. These drivers in most cases are an avenue to explain what has transpired in the financials between the current period and the preceding one by way of writing a commentary and providing a succinct and holistic explanation of the financial statements.
It would be time consuming and too operational if analysts are concerned with every percentage movement in the financial statements.
Answer:
The correct answer is option C.
Explanation:
Suppose there is pessimism in an economy because of corporate scandals, international tensions, loss of confidence, etc. This is going to adversely affect the economy. Because of corporate scandals, the investment will decline. Loss of confidence in consumers will cause a reduction in consumption spending. International tensions cause net exports to decline.
All of this causes aggregate demand to decline. The aggregate demand curve moves to the left. This leftward shift causes both the quantity of output and price to fall. As output fall real GDP will decline as well.
$342,000
Regardless if the amount of supplies has not been paid or not, it is still accounted for in the balance sheet. You would have a debit of 342,000 for supplies, credit of supplies payable of 240,000 and a credit to cash for 102,000 assuming that the difference between both amounts was paid for with cash.
Answer and Explanation:
The computation of the unit cost for material and conversion cost is shown below:
Material Cost per Unit is
= Total Material Cost ÷ Equivalent Units for Materials
,= ($7,700 + $66,801) ÷ (20,300 units)
= $3.67 per unit
And, the conversion cost per unit is
= (labor cost + overhead cost) ÷ equivalent units for conversion
= ($19,700 + $18,289) ÷ 18,900 units
= $2.01 per unit