Answer:
B, Ben
Explanation:
Direct finance is a financing method in which a borrower borrows money directly from the financial market. This means that direct financing mainly does not involve any intermediary. There are some situations where a third party/intermediary involvement still counts for direct finance. but mainly, direct finance does not involve a third party. From the question, Ben is dealing directly with US saving bonds with is a part of the financial market is using direct finance. Banks, agents, etc are all intermediaries as they also contact the financial market to be able to sell securities or anything to the customer.
Cheers.
Which of the following is not a determinant in calculating federal income taxes withheld from an individual's pay? a.number of exemptions b.type of earnings c.gross pay d.filing status
Answer:
B. Type of Earnings
Explanation:
Federal Income Taxes are taxes levied by the Internal Revenue Service (IRS) of the United States and it usually calculated and taken or withheld from the annual income of persons, corporations among other legal organisations.
The components that get taxed from one's income include the earnings from employment as well as the capital gains and the number of exemptions, gross pay of the individual and the filing status are very important in calculating the tax.
However, type of earning is a determinant that is only relevant for self-employment and since the individual is an employee, then it will not be relevant for making decisions on deductions from the individual's pay.
According to the PPC, as we produce more military goods and our resources remain constant, what will happen to the production of consumer goods?
Answer:
Production of consumer goods will be reduced
Explanation:
A Production possibility curve depicts all the possibilities of production of two goods in an economy wherein to produce an extra unit of one good, some part of production of second good needs to be sacrificed.
If an economy produces only two kinds of goods such as military goods and consumer goods, extra production of any of the two would require a corresponding sacrifice of the other. This points towards opportunity cost.
A typical production possibility curve is concave to the origin depicting opportunity cost.
If an economy decides to produce more of military goods with available resources remaining constant, it can only be achieved by sacrificing on the production of consumer goods.
Thus, production of consumer goods will reduce if more military goods are produced.
A group of shoe manufacturing firms purchases raw materials collectively from a single supplier to obtain better deals. this is an example of obtaining competitive advantage by ______________. a. establishing alliances b. creating a new service c. locking in customers d. differentiating the industry e. enhancing the products
Answer: (A) Establishing alliances
Explanation:
Alliances is one of the type of business strategy which is used in for maintaining the relationship between the people, states and the group.
The main purpose of alliances is that it helps in balancing the power and also creating the separate business entity in an organization. It is also known as the type of agreement between the people that helps in binding all the joint venture in business.
According to the given question, the above given situation is an example of obtain the competitive advantage by establishing the alliances.
Therefore, Option (A) is correct answer.
The shoe manufacturing firms are obtaining a competitive advantage by establishing alliances. This collaboration between different companies helps them to negotiate better deals with suppliers, leading to a competitive advantage in the industry.
The group of shoe manufacturing firms in your example is obtaining a competitive advantage by establishing alliances. This strategy is a business tactic involving collaboration between different companies with mutual goals to gain more favorable outcomes such as getting better deals on raw materials purchases. This co-operation can provide an upper hand in negotiations with suppliers, which can further lead to cost-efficiency, and thus, a competitive edge in the market.
Typically, the other options like increasing a new service, locking in customers, differentiating the industry, or enhancing the products are also potential strategies for gaining competitive advantage, but they do not apply to this given context wherein the companies are merely combining their purchasing power to get better deals from their supplier.
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What do you have as an entrepreneur when buyers choose your products or services over your competitors?
As an entrepreneur, you have a ___ when buyers choose your products or services over your competitors.
Answer:
As an entrepreneur, you have a competitive advantage when buyers choose your products or services over your competitors.
Explanation:
Competitive advantage can be understood as an advantage that any organization or any firm might have over its competitors due to various possible reasons. When customers prefer the product of any particular company over other companies in the same genre, then the former company is an aid to possess a competitive advantage over its competitors. The reason for this preference could below the pricing of the product, greater quality or sometimes even greater brand value of the product.
Answer:
The right answer is competitive advantage
Explanation:
Presented below are selected account balances for Sunland Co. as of December 31, 2020. Inventory 12/31/20 $59,550 Cost of Goods Sold $222,005 Common Stock 76,250 Selling Expenses 15,964 Retained Earnings 44,780 Administrative Expenses 37,422 Dividends 18,160 Income Tax Expense 30,070 Sales Returns and Allowances 11,865 Sales Discounts 15,140 Sales Revenue 405,210 Prepare closing entries for Sunland Co. on December 31, 2020.
Answer:
Explanation:
The closing entries for the following accounts are
1. Sales Revenue A/c Dr $405,210
To Income Summary $405,210
(Being revenue account closed)
2. Income summary A/c Dr $332,466
To Cost of Goods Sold $222,005
To Selling Expenses $15,964
To Administrative Expenses $37,422
To Income Tax Expense $30,070
To Sales Returns and Allowances $11,865
To Sales Discounts $15,140
(Being credit balance accounts are closed)
3. Income summary A/c Dr $72,744 ($405,210 - $332,466)
To Retained earning $72,744
(Being the difference is credited to retained earning)
4. Retained earnings A/c Dr $18,160
To Dividend A/c $18,160
(Being dividend account is closed)
Final answer:
Closing entries for Sunland Co. involve transferring the revenue and expense account balances to the Income Summary, then the net income to Retained Earnings, and finally closing dividends to Retained Earnings, resulting in zeroed temporary accounts.
Explanation:
To prepare closing entries for Sunland Co. on December 31, 2020, we need to close out all revenue and expense accounts into the Retained Earnings account. The closing process involves transferring the balances from temporary accounts (revenues, expenses, dividends, sales returns & allowances, sales discounts) to permanent accounts (retained earnings). Below are the necessary steps:
Close revenue accounts to Income Summary:At the end of this process, the Retained Earnings account will reflect the net income minus dividends paid during the year, and all temporary accounts will have a zero balance, ready for the next accounting period.
Another reason fueling the boom in fast-growing technology services is ___________________, which, when done right, can virally spread awareness of a firm with nary a dime of conventional ad spending a. legacy systemsa.App storesb.Big data and business analyticsc.Esoko and M-Pesad.Sproxile.Legacy systems
Answer:
A) App stores
Explanation:
App stores have a positive impact on the whole American economy and can help companies by:
reducing transaction costslowering entry barriers increasing consumer trust and securityFor example, during 2018, the app economy in the US represented $568.47 billion and it included over 5,744,481 people working in 317,673 different companies.
App stores allow companies, specially smaller companies and entrepreneurs, to have a low-cost distribution channel to massive markets all around the world.
The impact of the app economy will only increase as the internet of things (IoT) increases.
According to the FASB conceptual framework, the rele-vance of providing information in financial statements is subject to the constraint of:
a. Comparability.
b. Cost-benefit.
c. Reliability.
d. Faithful representation.
Answer:
B. Cost-Benefit
Explanation:
According to the Financial Accounting Standard Board (FASB) framework, it is important to estimate the cost and benefit of information before deciding the relevance of the information. It decides when to disclose and whether to disclose the information
Once, the cost of such information outweighs the benefits of its disclosure then FASB framework terms it as not relevant.
Cost of Information
Financial reporting through the preparation of financial statements has a cost, these costs include provision, preparation as well as the audit of the information provided. The cost-benefit constraint basically intends to ensure that financial statements are most-effectively and most-efficiently prepared.
Joe Whinney, the founder of Theo Chocolate, says everyone in the supply chain should be better off as a result of this delicious food. Theo Chocolate's creators believe that they have an obligation to adopt a strategic approach to fulfilling economic, ethical, environmental, and social responsibilities, which is best described as:________.
a. corporate citizenship.
b. social responsibility.
c. consumerism.
Answer:
Corporate citizenship
Explanation:
Corporate citizenship - it is referred to as the kind gesture that is initiated by any organization toward the local company. This gesture is not in the form of investing in business but also includes some investment particularly for the local community.
it helps to enhance the company's performance and reduce the risk. it helps to improve the social relationship with others.
One of the most important contributions to total quality management has been the introduction of statistical tools to analyze the causes of product defects, in an approach called:
A. Mechanistic
B. Six Sigma Quality
C. Organic
D. Total quality integration
E. ISO 9000
Answer: B. Six Sigma Quality
Explanation:
Six sigma is a statistical quality management methodology which businesses adopts to improve product & processes, eliminate defects in their processes.
Six sigma quality is data driven, customer focused, and results driven.
Levels of Six sigma includes.
•Six sigma white belt.
•Six sigma yellow belt
•Six sigma green belt.
•Six sigma black black.
Six sigma quality uses the DMAIC process to improve processes.
DMAIC:
•Define the problem.
•Measure the outcome.
•Analyze.
•Improve the process.
•Control the process.
Six Sigma Quality serves as one of the most important contributions to total quality management .
What is Six Sigma Quality?Six Sigma quality" serves as the term that explains how to indicate if a process is well controlled.
It can be referred to as the introduction of statistical tools to analyze the causes of product defects.
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Matilda just graduated from college. In order to devote all her efforts to college, she didn’t hold a job. She is going to tour around the country on her motorcycle for a month before she starts looking for work. Other things the same, the unemployment rate
a. increases and the labor-force participation rate decreases
b. and the labor-force participation rate both increase
c. increases and the labor-force participation rate is unaffected
d. and the labor-force participation rate are both unaffected
Answer:
Matilda is going to tour around the country on her motorcycle for a month before starting to look for work. Other things remain the same, the unemployment and the labor-force participation rate are both unaffected, Option D.
Explanation:
Labor-force participation rate is the 'percentage' of population that is economy's active workforce or the ones that are looking for work actively or are working. It is an important labor market measure.
Unemployment rate is the percentage of people who have no job. Workers that are discouraged reduce the labor force participation rate in case the unemployment is very high. In Matilda's case, she seems to be serious for her studies in college as she devoted all her efforts in college initially. Since she is going for a motorcycle tour before starting work, both unemployment and labor force participation rate remain unaffected as she is not actively looking for work and has just graduated.
The purpose of financial accounting is to provide information primarily for which of the following groups? A.Internal Revenue Service. B.Investors and creditors. C. Financial Accounting Standards Board. D.Government.
Financial accounting provides information primarily for investors and creditors to make informed decisions about a company's financial position and performance.
Explanation:The purpose of financial accounting is to provide information primarily for investors and creditors. Financial accounting helps these groups make informed decisions about investing in a company or extending credit to it. By providing information about a company's financial position, performance, and cash flows, financial accounting helps investors and creditors assess the company's profitability, stability, and ability to repay debts.
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Financial accounting primarily provides information for investors and creditors. This information, which includes details about the company's products, revenue, costs, and profits, aids in decision-making about the company's financial health.
Explanation:The main purpose of financial accounting is to provide comprehensive, reliable, and timely information primarily for investors and creditors. This information is vital as it helps these groups make informed decisions about the company's financial health. The board of directors, shareholders, and auditing firms represent key institutions of corporate governance, and their roles involve ensuring transparency and accuracy in the company's financial reporting. However, accurate information is also essential for outsiders, especially large shareholders, bondholders, and other investors who do not know the company managers personally or extensively.
Investors and creditors rely upon the information from financial accounting when providing financial capital to a firm. The information such includes the company's products, revenues, costs, and profits. Therefore, it is important to ensure that this information is accurate and up-to-date to aid in decision making.
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The currency deposit ratio is c 0.10. The reserve requirement rr, is 0.08. the excess reserve ratio ,e is 0.05. what is the size of the money multiplier?
A. 4.70.B. 4.75.C. 4.00.D. 4.78.
Answer: 4.78
Explanation: Money multiplier could be explained as the maximum amount of commercial bank money that can be created given a certain amount of money in the monetary base under a fractional-reserve banking system. I. Other words, the ratio or statistic of commercial bank money you the central bank money.
In this question, money multiplier is calculated using the relation:
M = (1 + c) ÷ (rr + e + c)
Where:
c = currency deposit ratio
rr = reserve requirement
e = excess reserve ratio
M = money multiplier
M = (1+0.1) / (0.08+0.05+0.1)
M = 1.1 / 0.23
M = 4.78
The business cycle is the a.relationship between unemployment and inflation. b.irregular fluctuations in economic activity. c.positive relationship between the quantity of money in an economy and inflation. d.predictable changes in economic activity due to changes in government spending and taxes.
Answer:
The correct answer is B
Explanation:
Business cycle is the term which is defined as the fall and the rise in the production of the output of services and goods in the economy. These are usually measured or determined by using the fall and the rise in the real GDP (Gross Domestic Product) or the adjusted GDP for the inflation.
So, the business cycle is defined as the irregular fluctuations in the economic activity.
According to a recent survey by BizMag, more than 60 percent of all employees believe that pilfering office supplies for personal use is acceptable. Which of the following statements is true in this scenario A) The magnitude of the consequence is high.B) The concentration of effect is high.C) There is a high degree of social consensus.D) The probability of effect is high.
Answer:
Option C
Explanation:
C. There is a high degree of social consensus
Which of the branches of accounting is primarily concerned with recording, classifying, allocating, and reporting current and prospective costs?
Answer:
Cost Accounting
Explanation:
The branches of accounting that is primarily concerned with recording, classifying, allocating, and reporting current and prospective costs is cost accounting.
Cost Accounting is the collecting, recording, classifying, and appropriately allocating costs of an expenditure; and the categorization and reporting of all such costs either currently and prospectively.
Therefore a broader look at costing means that it entails
Collection of costs which are attributable to products or services
Classification of costs into material, labor or overheads
Recording the costs as they occur to avoid omission
Computation of total costs
Allocation of overhead costs to products and jobs
Reporting the total costs for the period and by extension the standard costs for future periods
By building employees’ commitment to the organization, providing intrinsic as well as extrinsic rewards, and allowing all employees to monitor product quality, managers are using:
Answer:
Decentralized Control
Explanation:
When the manager allows all employees to monitor product quality, it is because he is giving every employee a bit of control over the production process. This is the definition of decentralized control: instead of having top management oversee all aspects of the company, middle, lower management, and even operating workers are deemed capable enough to excercise control in specific aspects of the company.
Intrinsic and extrinsic rewards also are related to decentralized control because these rewards act as incentives for the employees to take on more responsability, and as the question correctly point out, they also help build commitment to the organization.
What state does a population reach when the average value of an adaptive trait no longer changes?
Answer: Equilibrium
Explanation:
A population is said to have gotten to a state of equilibrium, when there is no observable change in the traits found in that population overtime. This implies that the adaptive trait found in the population no longer changes.
Genetic equilibrium is the state a population reaches when the average value of an adaptive trait no longer changes.
Explanation:In biology, the state a population reaches when the average value of an adaptive trait no longer changes is called genetic equilibrium. It occurs when the forces of genetic variation and natural selection balance each other, resulting in a stable average value for the trait. In this state, the population experiences no significant changes in the average value of the adaptive trait over time.
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Which project type creates a competitive advantage that enables the organization to earn a greater than normal return on investment than its competitors?
Answer:
a breakthrough project
Explanation:
Having competitive advantage implies being in a condition or circumstance that puts an organisation in a favorable business position.
Therefore, a Breakthrough Project would create a competitive advantage that enables the organization to earn a greater than normal return on investment than its competitors, because it is like a disruptive innovation.
"________ are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible."
Answer: Services
Explanation:
Services is the term which refers to the non-physical and the various types of tangible parts in our economy.
The services is basically providing the various types of intangible products like consulting, baking, treatment, education and issuance facilities or services.
It is the term which is difficult for identifying as it is associated with the products and the services. It cannot be transported from the given system.
Therefore, Services is the correct answer.
Construct a decision-making grid that analyzes the potential choices of attending basketball practice and working at an after-school job.
Answer:
A decision-making grid helps you to analyze what you gain and what you lose whenever you make choices. Refer to the following decision grade that analyzes the potential choices of attending basketball practice and working at an after-school job.
Explanation:
Decision-making grid:
Before constructing a decision-making grid, lets assume that the Mr. A chose to work an after-school job, so the benefits are associated with his choice whereas the opportunity cost represents the choice he could have chose i.e. attending basketball practice
Choice Benefits Opportunity Cost
One hour at Job Afford to pay his tuition fees Learn a new skill
Two hours at Job Afford a gaming console Able to achieve req.fitness
Three hours at Job Afford to buy bike Make to the team's bench
Four hours at Job Afford a good college Make to the starting lineup
Five Hours at Job Afford a car A regular with good performances
The liaison role of a manager encompasses relationships with subordinates, including communication and influence, whereas the leader role of a manager pertains to the development of information sources both inside and outside an organization.
Correct/Complete Question:
The liaison role of a manager encompasses relationships with subordinates, including communication and influence, whereas the leader role of a manager pertains to the development of information sources both inside and outside an organization. True or False.
Answer:
False
Explanation:
The role of a liaison manager is to maintain communication/information links inside and outside an organization while a manager in the leader role being one of the characteristics of a manager, involve the manager interacting directly and motivating subordinates as well as training subordinates.
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Your co-worker Terry is dealing with a lot lately. Usually, he is a productive member of your team, but lately, he's been ill-tempered and even rude to you and the rest of your team. You know that Terry's supervisor scolded him for poor work habits and he got a speeding ticket last week. He also seems worried that he might be fired. You're sympathetic, but his attitude is causing the rest of your team to suffer in terms of morale and productivity. How would you approach Terry about his negative attitude in a positive and non-aggressive way? << Read Less
Explanation:
Identify the root cause: This will eradicate the negativity and make sure it does not turn back.Do not get into argument while conversing: The aggressive nature of Terry needs to moved to calm attitude and this can be achieved only if you show the calmness.Understand their emotions and be empathetic: ill-tempered is on the emotion shown in negative way. So accept and move him in an empathetic approach.Help voluntarily: Lend your ears to Terry's problem and go voluntarily to help him to come out with his negative thoughtsAppreciate: Provide appreciation even if there is a small shift in the attitudeHow do you talk to someone about "negativity" without them thinking you're telling them to be quiet? How can you assist them to recognize that their method is ineffective while still motivating them to speak up? Here are five points for accomplishing this.
The following are the methods to approaching Terry about his negative attitude in a positive and non-aggressive manner:
Find out the main cause of the behavior: This will ensure that the negativity is eradicated and that it does not return.Do not argue while conversing with Terry: Terry's aggressive character needs to be transformed into a calm mindset, which can only be accomplished if you demonstrate tranquilly.Understand and empathize with emotions: Irritability is an emotion that is expressed in a negative way. As a result, accept him and move him in an empathic direction.Volunteer to help: Listen to Terry's situation and go out of your way to assist him in getting rid of his negative ideas.Appreciate: Even if there is only a minor shift in attitude, express gratitude.
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When managers at General Motors evaluated all the firms' various divisions and then chose to close both the Saturn and Pontiac divisions, it was involved in diversification. product development. portfolio analysis. franchise reevaluation. demarketing
Answer: Portfolio analysis
Explanation:
The portfolio analysis is one of the type of management that helps in reviewing all the elements in the portfolio of the business in an organization.
The main objective of the portfolio analysis is that we can easily analyzing the different types of risks and also properly analyze resources allocation in the given portfolio.
According to the given question, the manager of the general motors evaluating all firms or companies about the divisions then it involve the portfolio analysis.
Therefore, Portfolio analysis is the correct answer.
Roger, Ellen, Drew and Cindy are equal partners in a local pub. The pub reports the following items for the current year: Business revenue$1,770,000Business expenses 1,000,000Investment expenses 160,000Each partner receives a Schedule K-1 with one-fourth of the preceding items reported to him/her. How must each individual report these results on his/her Form 1040?
A. $770,000 on Schedule E; $160,000 on Schedule A.
B. $385,000 on Schedule E; $40,000 on Schedule A.
C. $257,667 on Schedule E; $40,000 on Schedule A.
D. $192,500 on Schedule E; $40,000 on Schedule A.
Answer: D-$192,500 on Schedule E; $40,000 on Schedule A.
Explanation: The pub reports the following items for the current year:
Business revenue : $1,770,000
less:
Business expenses $1,000,000
Profit for the year $770,000
divided by 4= $770,000/4 = $192,500 will be recorded on schedule E by each partner.
Investment expenses will be reported under schedule A as $160,000/4 = $40,000 by each of them
Asking customers at the shopping mall about their voting intentions in the upcoming political election is an example of secondary data.true/false
Answer:
False
Explanation:
There are two types of data which are as follows:
1. Primary data
2. Secondary data
The primary data is the data that is collected for the specific purpose or we can say through first-hand sources or data. Like - surveys, interviews, etc
And, the secondary data is the data that is based on past data. The example includes the website, books, journals, etc
In the given situation, the data is primary data, not the secondary data
Maureen's college raises the cost of room and board per semester. This increase raises Maureen's opportunity cost of attending college ____.
a. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost increases Maureen's incentive to attend college.
b. even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount. An increase in opportunity cost increases Maureen's incentive to attend college.
c. only if the amount she would have to pay for room and board if she didn't attend college rose by less than the increase in the amount her college charges. An increase in opportunity cost reduces Maureea's incentive to attend college.
d even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount An increase in opportunity cost reduces Maureen's incentive to attend college.
Answer:
d even if the amount she would have to pay for room and board if she didn't attend college rose by the same amount An increase in opportunity cost reduces Maureen's incentive to attend college.
Explanation:
Opportunity cost in decision making has to do with an alternative foregone. If you make a choice of an alternative over another, therefore the extrinsic cost which is the benefit you will not have, for choosing that alternative is the opportunity cost.
Applying the above to the given scenario, it does not matter the range of increase in the college cost or room and board cost if she did not attend college; It is a general conclusion and a fact that an increase in the level of opportunity costs, it will reduce Maureen's incentive to want to go to college.
Final answer:
Attending college imposes both an out-of-pocket cost and an opportunity cost of lost earnings.
Explanation:
Attending college is another case where the opportunity cost exceeds the monetary cost. The out-of-pocket costs of attending college include tuition, books, room and board, and other expenses. However, in addition, during the hours that you are attending class and studying, it is impossible to work at a paying job. Thus, college imposes both an out-of-pocket cost and an opportunity cost of lost earnings.
Revved Rider Inc., a motorcycle company, is the market leader due to its superior engine technology and service orientation. These unique qualities have helped the company generate revenues that are consistently higher than other firms in the same industry. Which of the following can be concluded about Revved Rider Inc. from this scenario?
Answer:
It has a competitive advantage over the other firms.
Explanation:
A competitive advantage refers to a firm's relative advantage in:
providing the same good as its competitors at lower prices, or providing a better good than its competitors at the same price.Competitive advantages result from a firm developing core competencies that provide them an edge over their competitors. But competitive advantages do not last forever, and can change very rapidly.
In this case, Revved Rider's core competencies are a great engine and high quality customer service, but another manufacturer could develop a better engine.
Which of these scopes could be used for dimensions and metrics? Event-level, session-level, or transaction-level scope Location-level, duration-level, or user-level scope Hit-level, session-level, or user-level scope Event-level, duration-level, or transaction-level scope.
Answer: Hit-level, session-level, or user-level scope
Explanation: Dimensions and Custom metrics are default dimensions and metrics in any Analytics account. You can use them to collect and analyze data that Analytics doesn't automatically track.
dimensions and metrics allow you to combine Analytics data with non-Analytics data, e.g. CRM data.
The scopes determines which hits will be associated with a particular custom-dimension value and they include Hit-level, session-level, or user-level scope
Ginny was hired by her company because she agreed to work overtime and carry out all tasks assigned to her as per the instructions. She also signed a contract that would terminate her from the company if she was unable to comply with the organization's policies. Given this information, Ginny is most likely part of a(n) _____.
Answer: Traditional work group
Explanation:
The traditional work group is one of the type of group that is composed of different types of people where they all work together for achieving a desired and shared goals.
It is also known as functional team where the specialist sharing a common goals and the various types of technical vocabulary according to the organization policies.
According to the given question, Ginny hired by an organization as he agree for working overtime and she also follows the company policies as she is a part of traditional work group.
Therefore, Traditional work group is the correct answer.
Answer:
the answer is b
Explanation:
Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return. For 2016, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2015 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2016, she had $250,000 in accounts receivable from customers, all from 2016 sales.
a. Selma's accrual basis gross receipts for 2016 are _________
Selma paid cash for all of the purchases. The total amount paid for merchandise in 2016 was $1,300,000. At the end of 2015, she had merchandise on hand with a cost of $150,000. At the end of 2016, the cost of merchandise on hand was $300,000.
The cost of goods sold for 2016 under the accrual method is _____________
The gross profit from merchandise sales for 2016 under the accrual basis is ____________
Answer:
Selma's accrual basis gross receipts for 2016 are $1,350,000
The cost of goods sold for 2016 under the accrual method is $1,150,000
The gross profit from merchandise sales for 2016 under the accrual basis is $200,000
Explanation:
Selma's accrual basis gross receipts for 2016 are = cash receipts + accounts receivable - cash collected from 2015 sales - bank loan = $1,400,000 + $250,000 - $200,000 - $100,000 = $1,350,000
The cost of goods sold during 2016 = total purchases made during 2016 + ending inventory 2015 - ending inventory 2016 = $1,300,000 + $150,000 - $300,000 = $1,150,00
The gross profit for 2016 = gross receipts - cost of goods sold = $1,350,000 - $1,150,000 = $200,000