Question

In: Accounting

In order for investors and creditors to decide whether to investin a company or loan...

In order for investors and creditors to decide whether to invest in a company or loan a company funds they should do all of the following except:

Multiple Choice

Analyze financial statements for the company.

Compute profitability, liquidity, and leverage ratios for the company.

Focus on corporate governance of the company.

Rely on assurances of reliability by the company's leaders.

When direct labor employees contribute to the production process, the cost of their labor is applied by debiting:

Multiple Choice

Work in Process Inventory.

Wages Expense.

Manufacturing Overhead.

Direct Labor.

What is the answer thanks

Solutions

Expert Solution

In order for investors and creditors to decide whether to invest in a company or loan a company funds they should do all of the following except: Rely on assurances of reliability by the company's leaders.

Fourth option is the correct option.

Analyzing financial statements for the company, Computing profitability, liquidity, and leverage ratios for the company. and Focus on corporate governance of the company are the tools which can be used by investors and creditors to decide whether to invest in a company or loan a company funds

When direct labor employees contribute to the production process, the cost of their labor is applied by debiting:

Work in Process Inventory.

The journal entry for direct labor applied is as under

Work in process Debit

Direct labor Credit

First option is the correct option.

ekkarill92 answered 2 years ago
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