Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Assume that Frank Company uses a perpetual inventory system.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in that same element.) Wetzel Co. sold merchandise to a customer for $950 on account. Wetzel's cost of the merchandise was $600. (Consider the effects of both parts of this event.)AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(I) (NA) (I) (I) (I) (I) (NA)
Recording the sale increases assets (accounts receivable) and increases stockholders' equity (retained earnings) by $950. Sales revenue and net income increase by the same amount. Recording the cost of the merchandise sold decreases assets (merchandise inventory) and decreases stockholders' equity (retained earnings) by $600. The expense (cost of goods sold) increases and net income decreases by that same amount. The net effect on assets and stockholders' equity is an increase to each of $350 (or $950 ? $600). The transaction does not affect the statement of cash flows.
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If the articles of partnership provide for annual salary allowances of $36,000 and $18,000 to X and Y respectively and net income is $30,000, X's share of net income is $20,000
a. True b. False Indicate whether the statement is true or false
There are several chair responsibilities but one of the things a group facilitator can do to keep the group moving toward a successful completion is to organize and facilitate an evaluation process. Why is this step important?
What will be an ideal response?
Which of the following statements about customer value is true?
A. People in the organization who are not in the sales or customer service areas should never be called upon to help resolve a customer's problem. B. Building relationships with customers means providing customer value before, but not after the purchase of a product or service. C. Retaining current customers is usually less costly than taking customers away from a competitor. D. A firm's advertising department cannot be expected to develop ads to convince a customer to buy from the firm more than once. E. None of these statements is true.
Which of the following is used in the computation of the fixed overhead budget variance? Actual Fixed OverheadBudgeted Fixed OverheadFixed Overhead Applied to ProductionA.YesYesYesB.YesYesNoC.YesNoYesD.YesNoNoE.NoYesYes
A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E