BUSINESS HIGH SCHOOL

During 2016, P Company discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:2014 $120,000 understated
2015 150,000 overstated

P uses the periodic inventory system to ascertain year-end quantities that are converted to dollar amounts using the FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, P's retained earnings at January 1, 2016, would be:

Answers

Answer 1

Answer:

$150,000 overstated

Explanation:

Given

2014 $120,000 understated

2015 150,000 overstated

Using the FIFO cost method, the retained earnings would be $150,000 overstated.

The understated earnings of $120,000 would affect the earnings of 2014 cost of goods sold to be entered as overstated. At the same time, this would understate the net income and the retained earnings.

Having mentioned the above, this would also affect the beginning Inventory of 2015 cost of goods sold to be understated. By the same virtue, this would overstate the net income and the retained earnings by the same amount the net income and retained earnings is understated, effectively correcting the balance of the retained earnings.

Lastly, The $150,000 overstated ending inventory would then affect the 2015 cost of goods sold to beunderstated; this would overstate the Net Income and Retained Earnings.

Answer 2

Answer:

Answer:

P's retained earnings are overstated by $150,000.

Explanation:

First of all, the $120,000 inventory understatement would cause the 2014 cost of goods sold to be overstated. In other words, profits and consequently retained earnings were understated because COGS were too high.

Because the 2014 ending inventory was understated, the beginning inventory in 2015 would be understated also. Since the initial inventory was understated, the COGS would be too low during 2015, which would end up correcting the previous error during 2015 (both profits and retained earnings should level up).

By the end of 2015, an error happened again and this time the ending inventory was overstated by $150,000, which understates COGS and overstates profits (and retained earnings). This should also be corrected during 2016, but since we are asked about January 1, 2016, then the correction hasn't occurred yet.

The problem with a periodic inventory system is that COGS is determined at the end of the accounting period, unlike a perpetual inventory system that records COGS immediately. Any variation in final inventory will change profits and directly affect retained earnings.

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Answers

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When should you write a functional (skills) résumé? a. When you work history does not have obvious gaps.
b. When you are making a career change.
c. When your most recent job is similar to the one you are applying to.
d. When you are applying to a very traditional company.

Answers

It is b) when you are making a career change.

just took the test hope this helps you

The option b is correct.

A functional resume is written when you are making a career change.

Further explanation:

Functional Resume: This kind of resume contains information regarding the skills and experience of the person. It does not contain work history in chronological order. It is used by individuals:

• Those people who are making a change in their career profile

• Those people whose employment history have gaps

• Those who are applying for the new job and their previous work experience is not related to the new job.

Justification for the correct and incorrect answer:

When you work, history does not have obvious gaps: This option is incorrect.

The functional resume is used when there are gaps in employment history. The gaps can be due to medical reasons or personal factors.

When you are making a career change: This option is correct.

The resume contains information regarding the skills and experience of the person. So, when the person is making a career change, a functional resume is required.

When your most recent job is similar to the one, you are applying to: This option is incorrect.

If the person is applying for a similar job, then the functional resume is not required, the traditional resume can be used.

When you are applying to a very traditional company: This option is incorrect.

The traditional company does not require a functional resume because they appreciate the resume containing all employment details in chronological order.

Learn more:

1. Stages of resume review

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2. Cover letter and resume

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3. Electronic submission of resume

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Answer details:

Grade: High School

Subject: Business

Chapter: Human resource management

Keywords: When should you write a functional (skills) resume, When you work history does not have obvious gaps, When you are making a career change When your most recent job is similar to the one you are applying to, When you are applying to a very traditional company.

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b. False
Gross sales less sales returns and allowances and sales discounts equal net sales.

Answers

The right answer for the question that is being asked and shown above is that: "TRUE."When a business uses a subsidiary accounts receivable ledger, there is no need to keep an accounts receivable account in the general ledger.

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Answers

The right answer for the question that is being asked and shown above is that: "TRUE." The value of a cash budget is that it helps you predict and supply your future cash needs. This statement is true as far as the value of a cash is concerned.

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Answers

Answer:

BCG growth-market share matrix

Explanation:

BCG growth-market share matrix is a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products.

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Answers

The correct option here is option C : The dish created by a recipe is the same each time it is followed properly.

Why are other options wrong?

A recipe gives different steps each time it is executed.

All recipes have specific calculations done for each ingredients and cooking them in a specific way to ensure that the food is made to perfection.

The above comparison done is called a simile.

A figure of speech involving the comparison of one thing with

another thing of a different kind, used to make a description more emphatic or vividly.

For further information on Similie refer :

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#SPJ2

Answer:

the dish created by a recipe is the same each time it is followed properly

Explanation:

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