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2 years ago

When merchandise is returned for a refund or for credit to be applied to other purchases, the situation is called a(n)

1 answer:

4 0

The situation when a merchandise is returned for a refund or for credit to be applied to other purchases is called Purchase return inwards.

<h3>Return inwards</h3>

A purchase return as the name implies occurs when the buyer of a merchandise, services, inventory, fixed assets, or other items sends these goods back to the seller.

These purchase returns when excessive can interfere with the profitability of a business, so they should be closely monitored.

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The primary benefit of diversification is:

BartSMP [9]

Answer:

(B) A reduction in risk

Explanation:

Diversification is necessary for investing. In this case, you invest your capital in different investments and you do not need to rely on a single investment for your returns and this also helps to reduce capital lost. Among saving your capital and receiving returns, reduction of capital loss is the primary benefit of diversification. If you invest your capital in one investment and the return is low or there is a poor performance, another investment might generate high returns over the same period of time and your capital loss is reduced.

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3 years ago

A share of stock is now selling for $75. It will pay a dividend of $6 per share at the end of the year. Its beta is 1. What do i

shepuryov [24]

Answer:

Sell Price= $1044

Explanation:

Equity Risk Premium = Market Return - Risk Free Rate

= 13 - 5

= 8%

Risk Free Rate = 5%

Beta = 1

Expected Return on stock = Risk-free rate + Equity risk premium * Beta for stock

= 5 + 1*8 = 13%

Current Price = Present Value of Future Payments

75 = 6*(1+i)^-1 + Sell Price*(1+i)^-1 , where i=13%

Sell Price = 74.572/0.0714

Sell Price= $1,044

8 0

3 years ago

Read 2 more answers

Bruno’s Gelato Café has a fixed cost of $100. The variable cost of producing 10 gelatos is $20, and the variable cost of produci

WINSTONCH [101]

Answer:

TC = $122, MC = $22

Explanation:

Total cost = Fixed cost + Variable cost

Total cost of producing 11 gelatos

$100 + $22 = $122

Marginal cost of producing 11 gelatos

MC = Change on total cost / change in quantity

= $\frac{122 - 100}{11 - 10}$

= $22/1

MC = $22

5 0

3 years ago

Adjustments to expense accounts at the end of the accounting period are made to adhere to accrual accounting principles, specifi

babymother [125]

Answer: Revenue Recognition

Explanation:

From the given text/information/scenario , we can state that the answer to the following question is revenue recognized. Revenue recognition is referred to as or known as the accounting principle that tends to outline certain specific conditions and circumstances under which the revenue is recognized.

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3 years ago

Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month.During June

Ksivusya [100]

Answer:

Each transaction leaves a different impact on each component of the accounting equation.

Explanation:

$60,000 is the owner's investment which is going to increase the equity

$15,000 worth of equipment will result in an increase in the owner's assets

Paying $1,500 will reduce the company's liabilities and also reduce current asset i.e. cash

Purchasing additional equipment for $10,000 will result in an increase in assets as the equipment will be coming to the business. On the other hand, it will also increase the company's liabilities as it is bought on credit.

The bill of $2,500 will increase assets

$8,000 bill will increase assets

Paying $6,000 for equipment will reduce cash and increase fixed assets.

Paying $3,000 cash as wages will reduce the amount of cash and eventually assets

Receiving $5,000 from the client will add more value to the assets

Paying $10,000 will reduce assets and liabilities.

Withdrawing $1,000 for personal use will adversely affect the equity

5 0

4 years ago