Answer:
At the time of purchase of raw material inventory,
Raw material inventory account will debit and accounts payable account will credit.
Therefore, the Journal entry for this transaction is as follows:
Raw Materials Inventory Account Dr. $36,000
To Accounts Payable $36,000
(To record the purchase of raw material on account)
Workings:
Raw material Inventory = Units of raw material purchased × Price per unit
= 6,000 × $6
= $36,000
Answer:
c. $86,000
Explanation:
The operating activities in the cash flow is the area where day to day business activities are recorded. This area mainly covers the cash incoming and outgoing due to regular business activities. The company paid dividends to its shareholders this will be considered as a financing activity as it is not of regular nature.
Answer:
Option A is the correct answer (Increases - Increases)
Explanation:
If Dawn had allocated the variances to work in progress rather than on cost of goods sold. Current ratio would increases and the net income would increase also. This is because writing off the variances to cost of goods sold would automatically result into a lower operating income than if it was either prorated to work in progress, finished goods, and cost of goods sold.
1. Several accounts were incorrectly aged in the
<span>client's aging schedule. </span>
<span>Procedures: Compare age% to prior year AR -Analytical procedures. </span>
<span>Assertion: cutoff, Valuation and allocation. </span>
<span>2. The accounts receivable turnover ratio was far below </span>
<span>expected results. </span>
<span>Procedure: AR analytical test: AR/AP, AR turnover,etc.-Analytical procedures. </span>
<span>Assertion:Completeness, cutoff. </span>
<span>3. Goods billed were not shipped. </span>
<span>Procedure: Cutoff test of billing-test the last month invoices. Vouching to the shipping doc.-Inspection of records. </span>
<span>Assertion: Occurrence, cutoff. </span>
<span>4. Some year-end sales were recorded in the wrong </span>
<span>accounting period. </span>
<span>Procedure: cut off test of billing-test invoices billed subsequent to year end.-Inspection of records </span>
<span>assertion:Completeness, cutoff </span>
<span>5. Several sales were posted for the correct amount but to </span>
<span>the wrong customers in the accounts receivable ledger. </span>
<span>Procedure: Confirmation of billings-Confirmation </span>
<span>Assertion: Occurrence. </span>
<span>6. The allowance for uncollectable accounts was </span>
<span>understated. </span>
<span>Procedures: Test the ratio of allowance to old AR and compare to PY. </span>
<span>-Analytical procedures. </span>
<span>Assertion:Valuation and allocation </span>
<span>7. Several sales were entered and posted at incorrect </span>
<span>amounts. </span>
<span>Procedures: Confirmation of AR. -Confirmation </span>
<span>Assertion: Accuracy and valuation </span>
<span>8. Mathematical errors were made in totaling the accounts </span>
<span>receivable ledger. </span>
<span>Procedures: Foot AR aging.-Recalculation </span>
<span>Assertion: Accuracy and valuation </span>
<span>9. An unrecorded sale at the </span>balance sheet<span> date was </span>
<span>collected in the next month. </span>
<span>Procedure: Post subsequent cash to AR balance at YE. Reperformance. records. </span>
<span>Assertion: Completeness, cutoff. </span>
<span>10. Several fictitious sales were recorded. </span>
<span>Procedure: Confirm customer balance.-Confirmation. </span>
<span>assertion: Occrrence. </span>
<span>11. The pledging of some customer accounts as security for </span>
<span>a loan was not reported in the balance sheet. </span>
<span>Procedure: Review security agreements.-Inspection of record. </span>
<span>Assertion: Occurrence and rights and obligations. </span>
<span>12. Some year-end cash receipts were recorded in the wrong </span>
<span>accounting period. </span>
<span>Procedure: cash cutoff testing.-Inspectionof record. </span>
<span>Assertion: cutoff, occurrence, completeness. </span>
<span />
Answer:
The correct answer is B
Explanation:
Price elasticity of the demand evaluates the demand responsiveness after the change or variation in the product own price.
The formula for computing the coefficient of price elasticity, is the factors which affect the elasticity and also elasticity is vital for business when deciding the prices.
So, Filet mignon(F) sells for $20 per pound when compared to that of hamburger (H) which sells the product for $2.30 per pound. F have the higher price as compare to the H, therefore, the coefficient of the price elasticity of demand in absolute value will be high or larger for F than that of H.
