Answer:
a. Overstates Year 1 cost of goods sold.
b. Understates Year 1 net income
c. Understates Year 2 cost of goods sold
Explanation:
a. The formula for Calculating the Cost of Goods sold is;
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.
b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.
c. Going by the formula in <em>a;</em>
<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>
In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.
Answer:
Is an activity or a public agency
Explanation:
The FLSA represents the Fair Labor Standards Act. It is a federal law and it sets the minimum amount of wages, the record, the overtime as well as employment standards. FLSA stipulates an employee coverage either as an individual coverage or an enterprise coverage
For the enterprise cover as required in this question, an enterprise can only be covered if
1. The enterprise has minimum of two employees
2. The annual volume of sales is a minimum of $500,000
3. The enterprise can also be covered if it carries out activities such as providing medical care for its people, providing preschools or main (secondary or university) schools for children or the enterprise is an hospital. It is also covered if it is a public or government agency. In order words <u>an activity or a public agency. </u>
Answer: Please refer to Explanation
Explanation:
A financial asset is a non-physical asset that that gets it's value from a contract that was signed by the parties involved. Financial assets include Bonds, stocks and even cash amongst others.
Real Assets on the other hand are physical assets that can be seen and hence have an inherent value. Examples include buildings and cars.
a. Toyota <u>creates</u> a <u>real asset</u>- the factory. The loan is a <u>financial asset </u>that is <u>created</u> in the transaction.
The factory becomes a real Asset that is tangible and has an inherent value. The loan was created by an agreement between Toyota and the bank and so is a Financial Asset.
b. When the loan is repaid, the <u>financial</u> asset is <u>destroyed</u> but the <u>real</u> asset continues to exist.
When the loan is repaid, Toyota no longer owns that financial asset because it has gone back to the bank. However, the Real Asset which is the factory that they were able to build will remain with Toyota.
c. The cash is a <u>financial</u> asset that is traded in exchange for a <u>real</u> asset, inventory.
As already mentioned, cash is a financial asset. Inventory is a tangible substance with an inherent value not determined by a contract and so is a Physical Asset. Trading cash for Inventory is therefore trading a financial asset for a physical one.
A total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.
<h3>What is a marginal labor?</h3>
This refers to a firm increase in total production because of one additional unit of labor that is added while all other factors of production remain constant.
Given the information in the attached table, a total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.
Read more about marginal labor
<em>brainly.com/question/13617399</em>
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