Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
Answer: Option B
Explanation: In simple words, turnkey operations refers to those projects which are related to the production of any good or service . These projects are intended to be sold or leased out once they are complete.
Thus, such kind of projects are usually made for the Govt. and after a long duration of completion the producer sells it to the govt.
Thus, the correct option is B
Answer:
d. Eliminate contributions to inefficient non-profit organizations
Explanation:
Other listed options are valuable to the question on strategic philanthropy except that on the need to eliminate contributions to inefficient non-profit organizations. No philanthropist would want to offer support to non-profit organizations that are unproductive and inefficient.
The answer is stuttering if not it is tongue tied
