Answer:
The amount of the sales discount is $60.
Explanation:
The with payment terms of 2/10, n/30 imply that Drafke will enjoy 2% discount if he pays within 10 days; but after the first 10 days, the full invoice amount payable will be due for payment in 30 days without the 2% discount.
From the question, we have:
Total credit sales = $5,000
Sales return = $2,000
Net credit sales = Total credit sales - Sales return = $5,000 - $2,000 = $3,000
If Drafke pays his account in full within ten days of the invoice date, he will enjoy the 2% discount rate. Therefore, we have:
Discount amount = Net credit sales * Discount rate = $3,000 * 2% = $60
Therefore, the amount of the sales discount is $60.
Who appoints the board of directors in a public stock company?A) AuditorsB) ShareholdersC) EmployeesD) CEOs
Answer:
The answer is B. Shareholders
Explanation:
The owners of the company (shareholders) appoint the board of directors for check and balance and to protect their interests. Appointing board of directors is one of the criteria of good corporate governance.
Because there is usually what we call agency problem whereby the agents(company's management) tends to go for their interest at the expense of the principal's(shareholders), board of directors are appointed for check and balance
ierney Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,100 $6,200 May 11 5,900 5,800 $3,800 June 12 1,400 April 13 5,100 5,600 June 14 6,800 4,600 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion. (a) What is the balance in Work in Process Inventory at the end of each month
Answer and Explanation:
The computation of the ending balance of the work in process is shown below:
For April month
= $6,100 + $5,900
= $12,000
For May month
= $5,900 + $5,800 + $5,100 + $6,800
= $23,600
For June month
= $6,800 + $4,600
= $11,400
In this way the ending work in process is to be calculated for each month and the same is to be considered
What type of management style would you use if you supervised 20 employees?
The best management style is when employees are lead by example and not by command.
The Better Building Company has a contract to build a building for $100 million. The estimate of the cost of the project is $75 million. In the first year of the project, BB had costs of $30 million. The Better Building Company’s reported profit for the first year of the contract, using the percentage-of-completion method, is:
Answer:
$10 million
Explanation:
Calculation for the reported profit for the first year of the contract
Using this formula
Reported profit=(BB Costs/Project cost estimate)×(Building contract-Project cost estimate)
Let plug in the formula
Reported profit = ($30 million / $75 million)×($100 million – $75 million)
Reported profit=0.4 million ×25 million
Reported profit= $10 million
Therefore the reported profit for the first year of the contract will be $10 million
Performance OverArmour Co. manufactures and sells clothing, shoes, and athletic equipment. Performance incurred substantial losses associated with its shoe division. The shoe division can clearly identify its operations and cash flows from the balance of the other groups. Performance plans to sell the shoe division. At what point can performance report the group as a discontinued operation A. The date Performance receives a contingent offer on the group B. The date the majority of the assets of the group are sold C. The date Performance classifies the group as held for sale D. The date Performance sells any assets of the group
Answer:
Performance Over Armour Co.
The point when the group becomes a discontinued operation:
C. The date Performance classifies the group as held for sale
Explanation:
Immediately the group is classified as held for sale, it becomes a discontinued operation. Discontinued operation is a part of a company's core business or product line that has been divested or shut down. It is then reported separately from other continuing operations on the income statement.
Match the following statements to the appropriate terms. An entry that involves three or more accounts. Transferring journal entries to ledger accounts. The side which increases an account. A list of all the accounts used by a company. A record of increases and decreases in specific assets, liabilities, and stockholdersl items. Left side of an account. An entry that involves only two accounts. A book of original entry. A list of accounts and their balances at a given time. Has a credit normal balance
Answer: The answers are given below
Explanation:
• An entry that involves three or more accounts. = Compound entry.
A compound entry is when two or more journal entries are combined together on order to save time.
• Transferring journal entries to ledger accounts. = Posting
• The side which increases an account. = Normal account balance.
• A list of all the accounts used by a company. = Chart of an account.
A chart of accounts (COA) consists of all the financial accounts that are in the company's general ledger. It gives the the details of the financial transactions that is being conducted by a company for a particular accounting period.
• A record of increases and decreases in specific assets, liabilities, and stockholdersl items. = Account
• Left side of an account. = Debit
The debit is an entry used to record the amount that the entity owe and it is always listed on left-hand side of an account.
• An entry that involves only two accounts. = Simple entry
A simple entry is made up of two accounts while a compound entry is made up of more.
• A book of original entry. = Journal
A journal is a record of every financial transactions that a business takes part in.
• A list of accounts and their balances at a given time. = Trial balance
The trial balance consists of a list of all the general ledger accounts that is, both the revenue and capital that are contained in a business ledger.
• Has a credit normal balance = Revenue account
