On november 1, year 1 cove company borrowed $7,000 cash from shelter company. the one-year note carried a 7% rate of interest.
which of the following shows how the loan will affect cove’s financial statements on november 1, year 1?

a) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. (7,000) ia
/na /na / na /na /na /na

b) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. (7,000) fa
/na /na /na /na /na /na

c) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. 7,000 fa
/7000 /7000 /na /na /na /na

d) balance sheet income statement statement of cash flows
assets = liab. + equity rev. - exp. = net inc. (7,000) ia /(7000) /(7000) /na /na /na /na

Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.

Which statement best explains the relationship between points a and b? a. consumption reaches its highest point, and then supply begins to fall. b. inflation reaches its highest point, and then the economy begins to expand. c. production reaches its highest point, and then the economy begins to contract. d. unemployment reaches its highest point, and then inflation begins to decrease.

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.