A certain company began the year with total assets of $10,000,000 and total liabilities of $6,200,000. No additional stock was issued during the year. Use the accounting equation to answer the following questions.
A)What was the amount of Total Assets at the end of the year if Liabilities decreased by $600,000 and Stockholders' Equity increased by $900,000? B)Was the company profitable? Explain your answer.
What will be an ideal response?
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The accuracy, valuation, and allocation assertion for prepaid insurance:
A. is best tested as part of the testing of property and equipment purchasing. B. is best tested exclusively by sending confirmations to vendors. C. is best tested by recomputing the unexpired portion of insurance policies in effect. D. is never tested because amounts always are immaterial.
Contribution margin ratio is equal to ________.
A) fixed costs divided by contribution margin per unit B) net sales revenue per unit minus variable costs per unit C) net sales revenue minus variable costs D) contribution margin divided by net sales revenue
A person who finds abandoned property becomes its owner by possessing it
Indicate whether the statement is true or false
A company that practices disintermediation is doing which of the following?
A. purchasing materials and goods from countries that are outside of the country's base operations B. using several distribution centers to streamline its delivery process C. utilizing data management systems to speed up the delivery process D. eliminating intermediaries in the delivery of its products to consumers E. estimating inventory based on forecasts of average demand