Presented below are a number of operational guidelines and practices that have developed over time. Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) (a) Fair value changes are not recognized in the accounting records. (b) Financial information is presented so that investors will not be misled. (c) Intangible assets are amortized over periods benefited. (d) Agricultural companies use fair value for purposes of valuing crops. (e) Each enterprise is kept as a unit distinct from its owner or owners. (f) All significant post-balance-sheet events are disclosed

Answers

Answer 1
Answer:

Answer: (a) Fair value changes are not recognized in the accounting records - Measurement principle  (historical cost).

(b) Financial information is presented so that investors will not be misled -  corresponds to full disclosure principle.

(c) Intangible assets are amortized over periods benefited - expense recognition principle.

(d) Agricultural companies use fair value for purposes of valuing crops - industry practices or fair value principle.

(e) Each enterprise is kept as a unit distinct from its owner or owners - economic entity assumption.

(f) All significant post-balance-sheet events are disclosed - full disclosure principle.


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Before the year​ began, Butler Manufacturing estimated that manufacturing overhead for the year would be​ $176,400 and that​ 13,800 direct labor hours would be worked. Actual results for the year included the​ following: Actual manufacturing overhead cost ​$185,000 Actual direct labor hours ​ 14,600 The predetermined manufacturing overhead rate per direct labor hour is closest to
You are reviewing your client's Multicurrency company Balance Sheet, and the balance as of the previous fiscal year-end for their Canadian bank account, which they closed last year, is a $10 debit balance in US dollars (the home currency). However, the Canadian dollar balance correctly indicates the account has been closed. Why would this be the case? 1. You have to create a journal entry debiting foreign exchange gain or loss $10 and crediting the Canadian bank account $10. 2. The Canadian bank account has not been reconciled as of the last fiscal year. 3. The Balance Sheet shows the cumulative balance of the account in the home currency based on the home currency value of each of the transactions using the exchange rate that appears on each screen. 4. You have to perform a home currency adjustment for the Canadian bank account as of the current date 5. You have to perform a home currency adjustment for the Canadian bank account as of the last fiscal year.
The current (year 0) price of the shares of Company XYZ is $50. There are 1 million shares outstanding. Next year (year 1)’s dividend per share is $2, which represents a 60% payout from earnings (net income). Investors expect a ROE of 20%, and a constant growth. 1. What will be the dividend per share in year 2 and year 3? 2. What is the current market value of the firm? 3. What will be the value of the firm next year after the payout?
External setup time refers to:______________. a. The time it takes workers to set up a machine during scheduled maintenance b.The time to complete setup activities that do not require that the machine be stopped c.The time it takes equipment vendors to set up the machine d. None of the above

__________ entail the performance of specialized activities by individuals or organizations for purposes of benefiting other entities (usually customers).

Answers

Answer:

Services.

Explanation:

As it is been explained to be a individual or organizational performance, which directly holds certain forms of benefit to many. It also can be said to be a transaction during which no physical goods are transferred from the vendor to the customer. It holds certain advantages of such a service are held to be demonstrated by the buyer's willingness to create the exchange. Public services are those who society (nation state, fiscal union or region) as an entire pays for. Using resources, skill, ingenuity; service providers benefit service consumers.

Issued stock for $6 cash (example).b. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.

Answers

Final answer:

The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.

Explanation:

The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:


  1. Issued stock for $6 cash: This transaction indicates that $6 cash was received in exchange for issuing stock.

  2. Purchased equipment costing $6,320: This transaction involves the cash payment of $4,893 and the remaining balance of $1,427 charged on account.

  3. Paid principal and interest expense on long-term debt: In this transaction, $513 is paid towards the principal amount and $91 is paid as interest expense. The debt is not specified.

  4. Earned sales revenue and collected cash: $88,988 is earned in sales revenue, of which $87,949 is collected in cash. The remaining amount is owed by the customers on account.

  5. Incurred shipping expenses: $10,766 in shipping expenses is incurred and charged on credit.

  6. Paid accounts owed to suppliers: $28,241 cash is paid towards accounts owed to suppliers.

  7. Incurred marketing expenses: $4,332 in marketing expenses is incurred and paid in cash.

  8. Collected cash from customers paying on account: $620 cash is collected from customers who are paying on account.

  9. Borrowed cash as long-term debt: $6,359 is borrowed in cash as long-term debt.

  10. Used inventory costing $62,752: Inventory costing $62,752 is used when sold to customers. The information does not mention the selling price or any profit.

  11. Paid income tax: $177 is paid as income tax recorded as an expense from the prior year.

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Final answer:

The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.

Explanation:

The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).

Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).

For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.

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Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period.
Contribution margin
Pretax income
(2) Compute the number of units expected to be sold next period.
Choose Numerator: / Choose Denominator: = Units
/ = Units

Answers

Answer and Explanation:

1. The computation of the total expected dollar sales for next period is given below:

Sales $4,410,000

Less: variable cost $1,764,000

Contribution margin $2,646,000

Less: fixed cost $2,364,000

Pre tax income $282,000

2. The number of units that should be sold is

= $2,646,000 ÷ $63 per unit

= 42,000 units

In this way it should be calculated

Home Security Systems is analyzing the purchase of manufacturing equipment that will cost $38,000. The annual cash inflows for the next three years will be: Year Cash Flow 1 $ 19,000 2 17,000 3 12,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the financial calculator method. a. Determine the internal rate of return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. With a cost of capital of 14 percent, should the equipment be purchased? No Yes

Answers

Answer:13.74%

No

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

Using a financial calculator to find the IRR :

Cash flow for year zero = $-38,000.

Cash flow for year one = $ 19,000 

Cash flow for year two = $17,000

Cash flow for year three = $12,000

IRR = 13. 74%

If the cost of capital is 14%, the equipment shouldn't be purchased because the IRR is less than the cost of capital.

I hope my answer helps you.

Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential bonuses b.a performance report identifying amounts of scrap c.a control report comparing direct material usage over time d.an annual report for external regulators such as the SEC

Answers

Answer: d.an annual report for external regulators such as the SEC

Explanation:

A managerial accountant is someone who records and analyzes the financial information for an organization. The data analysed will then be used to form financial decisions which can help the organization's growth.

Managerial accountants prepared ls financial information for internal reporting and not external reporting. Therefore, of the options given, the managerial accountants can prepare all the reports except the annual report for external regulators such as the SEC.

This​ year, Druehl,​ Inc., will produce 60 comma 000 hot water heaters at its plant in​ Delaware, in order to meet expected global demand. To accomplish​ this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor​ hour, how many laborers are employed at the​ plant?

Answers

Answer:

The answer is: 2500 employees

Explanation:

Giving the following information we need to calculate the number of employees:

Total production= 60000

Hours per worker= 160 hours

labor productivity= 0,15

It takes to a single employee= 1/0,15= 6,67 hours to make a heater.

Each worker produces=160/6,67=24 heaters a year.

Now we can calculate the number of workers:

60000/24= 2500 employees

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