Answer: b. pays cash before the expense has been incurred.checked
d. receives cash before the revenue has been generated
Explanation:
Here is the complete question:
Deferral adjustments are needed when the business:
a. pays cash after the expense has been incurred.unchecked
b. pays cash before the expense has been incurred.checked
c. receives cash after the revenue has been generated.unchecked
d. receives cash before the revenue has been generated.
Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.
Deferral adjustment is when the revenue or the expense has been deferred or postponed and will therefore be reported on the income statement at a later period.
Previously deferred amounts will show on the balance sheet when a company pays cash before having to incur the expense or in a case whereby the company gets and collects cash before earning the revenue.
When revenues are made or when expenses are incurred, the previously deferred amounts will have to be adjusted and then, the amounts will be transferred to income statement through the use of the deferral adjustment.
Answer:
(a) $33750000 (b) $11250000 (c) $22500000
Explanation:
Solution
(a) How much would Ziegler Inc. total income of operating increase.
Now,
Units * (Cost of purchased from outside supplier - Variable cost)
Thus,
75000 * ($1350 - $900) = $33750000
(b) How much would the Instrument Division's operating income increase
Now,
The Units * (Cost of purchased from outside supplier - Transfer Price)
So,
75000 units * ($1350 - $1200) = $11250000
(C) How much would the Components Division's operating income increase?
Now,
Units * (Transfer Price - Variable cost)
75000 units * ($1200 - $900) = $22500000
Answer:
Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be written last-B.
Answer:
Preparation of the adjusting entries as of December 31, 2015.
Dr Salaries Expense 3,920
Cr Salaries Payable 3,920
Explanation:
Since we were been told in the question that all the 15 employees worked the first 2 days of that week, the Adjustment we therefore be $3,920( 1,960×2) . And the transaction will be recorded as:
Dr Salaries Expense 3,920
Cr Salaries Payable 3,920
The Adjustment will be :
1,960 x 2 = 3,920
Therefore the pay that occured in New Year's Day will not be used because it falls in the next year.
Administrative restructuring; done at managerial level for effective decision making and delegation of power down the order.
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Explanation:
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According to the narration given in the above statement the general manager is of the view that too much layer of manager will hamper the decision making and effective delegation of work.
So, after a detailed study of manager’s role and responsibility at the level he decided to downsize the structure from 10 managers to 3 managers who will report to him for making effective decisions.
He has delegated power to the new managers and by doing so it has reduced the burden of the Joe. By doing this the organisation objectives and goals can be met at the targeted time.
