For questions 1 through 6:Indicate how each event affects the financial statements model. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element, which is offset by a decrease in that same element.)Calloway Company collected $750 from a customer for services that Calloway agrees to perform in the future.AssetsLiabilitiesEquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(I) (I) (NA) (NA) (NA) (NA) (I)
Collecting a payment in advance from a customer increases assets (cash) and increases liabilities (unearned revenue). It does not affect the income statement. Revenue will not be recognized until the services are provided. It will be reported as a cash inflow from operating activities on the statement of cash flows.
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Fill in the blank(s) with correct word
A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 140 pounds of M and 90 pounds of O. The price of M was $0.03 per pound and the actual price of O was $0.10.MaterialStandard Quantity (lbs) StandardCost/lb. Total CostO 0 $0.10 $0 H 80 0.08 6.40 M 120 0.02 2.40 200 $8.80 What is the material yield variance?
A. $3.00. B. $1.32. C. $1.68. D. $1.12.
The current indirect exchange rate is 0.652 GBP per USD. The anticipated annual inflation rate is 4% in the United States and 2% in the UK
If the cash inflow in pounds is 40,000 in one year, what are the 50,000 GBP worth in U.S. dollars after conversion from pounds to dollars using the forward exchange rate? A) $63,480.78 B) $63,874.27 C) $62,552.63 D) $63,983.78
The Agreement on Government Procurement has the force of international law and applies to all WTO countries
Indicate whether the statement is true or false