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3 years ago

Explain why saving money with a state minimum auto liability insurance policy generally isn‘t the best idea

1 answer:

3 0

It is a bad idea because a minimum auto liability insurance policy is meant for compensation against liability and not for saving purpose.

<h3>What is the liability insurance?</h3>

It is a legal requirement to have an active minimum liability insurance coverage to cover a liability especially injury and damage to third party property

In conclusion, the idea of saving money with the insurance policy is bad because it is meant for compensation against liability and not for saving purpose.

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Shoshone County uses the consumption method to account for supplies. At the beginning of the year the City had no supplies on ha

zhuklara [117]

Answer:

Expenditures $300,000; Supplies inventory $150,000.

Explanation:

The consumption method recognizes an asset when an item is purchased and an expense when an item is used or consumed. Therefore, when supplies are first bought, Supplies Inventory has a balance of $450,000.

After using those supplies during the year, $300,000 should be debited from Supplies Inventory and credited to Expenditures.

Therefore, at fiscal year-end, the appropriate account balances on the General Fund financial statements would be: Expenditures $300,000; Supplies inventory $150,000.

3 0

3 years ago

Accounting Equation Shannon Cook is the stockholder and operator of Personality Shine LLC, a motivational consulting business. A

Neporo4naja [7]

Answer:

a. Stockholders' equity as of December 31, 2017: $635,000

b. Stockholders' equity as of December 31, 2018: $524,000

Explanation:

Please find the below for detailed explanation and calculations:

We have the Accounting Equation as: Total Asset = Total Liabilities + Total Equity <=> Total Equity = Total Asset - Total Liabilities

Applying the Accounting Equation to find the Stockholder's Equity at the two point of time require, we have the calculation as below:

* December 31, 2017:

Total Asset = $836,000; Total Liabilities = $201,000

<u>=> Total Stockholder's Equity = $836,000 - $201,000 =$635,000</u>

*December 2018:

Total Asset = $836,000 - $159,000 = $677,000; Total Liabilities = $201,000 - $48,000 = $153,000

<u>=> Total Stockholder's equity = $677,000 - $153,000 = $524,000 </u>

3 0

3 years ago

A sole proprietor has ______ personal liability for all business debts and obligations.

andreev551 [17]

A sole proprietor has unlimited personal liability for all business debts and obligations.

<h3>Who is a sole proprietor?</h3>

A sole proprietor is the owner of a sole proprietorship. A sole proprietorship is a type of business that is owned by one person.

A sole proprietor and the business are regarded as a single person under the law. Thus, a sole proprietor has an unlimited liability. An unlimited liability means that in event of default, both the e property of the business and the sole proprietor can be seized.

To learn more about sole proprietorship , please check: brainly.com/question/1428023

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4 0

1 year ago

Lucci Inc. is a retailing firm specializing in high-end merchandise. Each of Lucci's stores uses the retail inventory method by

ludmilkaskok [199]

Answer:

1 Line item description Cost Retail

2 Beginning inventory 40000 360000

3 Purchases 1000000 10000000

4 Transportation in 50000

5 Purchase returns -20000 -196000

6 Net purchases(3+4+5) 1030000 9804000

7 Net additional markups 800000

8 Cost to retail ratio 1070000 10964000

component(2+6+7)

9 Net markdowns -500000

10 Sales -9800000

11 Ending inventory,retail(8+9+10) 664000

Setup calculation:

Cost to retail ratio = Cost to retail ratio component at cost/Cost to retail ratio component at retail

= 1070000/10964000

= 0.097592

= 9.76%

Ending inventory,cost = Ending inventory,retail*Cost to retail ratio

= 664000*9.76%

= $64806

Cost of goods sold = Sales*Cost to retail ratio

= 9800000*9.76%

= $956480

7 0

2 years ago

In the month of June, a department had 20,000 units in Beginning Work-in-Process that were 70% complete. During June, 90,000 uni

BigorU [14]

Answer:

110,000 units

Explanation:

<u>Calculation of the equivalent units of production for materials in June</u>

Beginning work in process 20,000

Units started and completed (90,000-10,000) 80,000

Ending work in process <u>10,000</u>

Equivalent units of production for materials for June <u>110,000</u> units

3 0

3 years ago