1.Investments are assets held by an entity for the accretion of wealth through distribution, for capital appreciation or for other benefits to the investing entity. 2.Accounts Receivable, Notes Receivable, and Loans Receivable are financial assets because these represents a contractual right to receive cash in the future 3.Financial assets at fair value through profit or loss include both equity securities and debt securities.
Q: ABC Partnership has the following capital balances and profit and loss percentages. A (50%)…
A: Goodwill is the difference between the price paid for an acquired company and the price not assigned…
Q: Times-Roman Publishing Company reports the following amounts in its first three years of operation:…
A: Introduction:- The following formula used as follows under:- Differed subscription =Beginning…
Q: nstruction: Do its general ledgers, trial balance, and worksheet Date Particulars Debit…
A: The general ledger is the ledger that accounts for each and every transaction. The balance of these…
Q: (a) You have been appointed as an accountant of M.K. Industries a company formed by Mr Mutiso and…
A: As per the entity concept, business and businessman are a separate legal entity. So, the personal…
Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales…
A: Total sales revenue = Number of Units sold × selling price per unit
Q: represent the residual equity of the partnership business.
A: An equity partnership is an agreement between individuals who pool their capital, skills and…
Q: Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; . Land of…
A: A partnership's accounting is equal to that of a sole proprietor, with the difference that there are…
Q: 1. Calculate the total direct materials variance and total direct labour variance, together with…
A:
Q: On January 1, Carlo, Jamie, Roma, and Fe, formed CABLES Trading, a local partnership, with capital…
A: Given: - Capital: Carlo=500,000 Jamie=250,000 Roma=350,000…
Q: Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. The sales…
A: Formula: Sales revenue = Sales price per unit x Number of units sold
Q: Question1. What is the process costing income statement? Provide a hypothetical example of a…
A: Process costing is a term used in cost accounting to describe one method for collecting and…
Q: Rob contributed P30,000 cash, a tract of land, and delivery equipment. Joe contributed P60,000 cash.…
A: It is an agreement made formally between two or more persons to operate and manage business with a…
Q: ASM Company makes a cologne called Allure. The standard cost for one bottle of Allure is as follows:…
A: Variances are calculated to determine the deviations of the actual figures from the budgeted or…
Q: Accounting for Correction of Errors, Change in Accounting Estimates and Accounting Policies Problem…
A: The change in accounting principle from FIFO to Weighted average should be reported as an adjustment…
Q: ue if Sandbox orporation which is an SME domestic prporation reported the allowing aross income
A: Tax:- A tax is the compulsory payment which is imposed by the government on income and capital gain…
Q: In a Statement of Retained Earnings, which statement is correct?
A: Retained earnings represent the earnings of the company accumulated over a period of time. The…
Q: P 205,000 67,900 36.500
A: It is given that the information of Brother Paul's Burger House.
Q: Mary operates a famous company in Canada, selling down jackets. She is planning to establish…
A: The answers for the questions on operating a business through branches in a country other than its…
Q: Jiminez Company paid its annual property tax of $12,400 on its manufacturing facility in January.…
A: Cost allocation is the method in which common costs are allocated to the product on the basis number…
Q: How long will it take for $5000 to double at 4% annual interest compounded monthly?
A: This would require the use of future value formula or present value formula to calculate the number…
Q: After working for years as a regional manager for a retail organization, Scott Parry opened his own…
A: Business Transaction- A business transaction is also known as a financial transaction because it is…
Q: Prepare Strange Things cash budget for the months of October, November, and December showing all…
A: Cash budget is one of the important budget that is being prepared in business and it shows expected…
Q: June 30, 2015, Patya Co. prepaid a 1,000,000 premium on an annual insurance policy. The premium…
A: Deferred tax liability is created when taxable income per books of accounts is higher than the…
Q: Among her many powers a trustee in bankruptcy may avoid: a. alimony payments. b. student loan…
A: Bankruptcy trustee is a person responsible for administering estate of a bankruptcy
Q: On January 1,2020, Carlo and Jamie formed a partnership with investments of P160,000 and P240,000…
A: Capital balance on December 31, 2021 = Amount invested- share of Carlo in net loss for the year…
Q: The Accounting Cycle of a Partnership and sole proprietorship are generally similar EXCEPT for: O…
A: Accounting cycle is the sequence which is used for maintaining the books the accounts.
Q: The partners' equity accounts with the corresponding balances represent the residual equity of the…
A: Partnership business is the one where there are more than two or more partners of the business who…
Q: The Textile Division of Electrotech Corporation reported the following results for a recent year…
A: Formulas: Profit margin = Net income / Sales where, Net income = Sales - Expenses
Q: On May 1, 2022, Carlo has been in a trading business for five years as a sole proprietor. He needed…
A: A partnership is an agreement between two or more individuals whose objective is to operate and…
Q: On 30 June 2009, M Ltd estimates that it will incur warranty costs of $150 000 in the next financial…
A: Solution Concept Warranty expense and liability The warrantty liability is the…
Q: A gift is valued at the date of* the death of the donor. notarization of the deed of donation.…
A: Donor’s Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property…
Q: Carlo and Jamie are partners who agreed that monthly salaries will be allowed to them as follows:…
A: Solution: As per question., Net Profit after tax: P580000 Annual salary of Carlo: Salary per month *…
Q: Discounting a Note Receivable Sonic Inc. received from a customer a $2,400, 9% interest-bearing note…
A: Introduction: A note receivable is a written promise to pay another party a certain sum of money on…
Q: On January 1, 2014, Mr. Albuera invested P2,000,000 in the six-year time deposit of Sulu Unibank…
A: The Percentage Tax of Withholding by banks: Banks and non-bank financial intermediaries…
Q: A balance sheet for the QRS Partnership, which shares profits and losses in the ratio of 5:3:2 shows…
A: Partnership: - When two or more persons enter into an agreement for setting up a business, run it…
Q: What is a key distinction in the presentation of the Income Statement in a Partnership
A: Income statement shows the net income or net loss that is calculated by deducting the expenses from…
Q: S1: It is usually advisable to write off the cost of the copyright against the revenue of the first…
A: Solution Concept Copyright and franchise are the intangible asset Intangible asset that have a…
Q: A partnership agreement may NOT include O the method of allocating profits and losses the purpose of…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: On January 1, Carlo, Jamie, Roma, and Fe, formed CABLES Trading, a local partnership, with capital…
A: Share of profit means the amount of profit that is received by one partner from the net profits of…
Q: Kibble for Kats is an exempt organization with fross receipts of $585,000. If Kibble for Kats and…
A: Explanation : As per IRS, Maximum penalty for late filing of return is the smaller of $10,500 or 5…
Q: Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; ● . Land…
A: In consideration of the above information, Cash is P60,000; P200,000 in land having a P410,000…
Q: A bond has ₱100, 000 face value, 3.2% coupon, and 4-year maturity period. How much interest will the…
A: Bondholder is entitled to receive interest at the coupon rate on the face value of the bond. It is…
Q: Alma and Becca have just formed a partnership. Alma contributed cash of P176,400 and office…
A: Partnership characteristics includes: Existence of an agreement Existence of business Sharing of…
Q: 3,000 Bank overdraft 3,000 Trade creditors (payables) 3,000 9,000 elego
A: The balance sheet is given as,
Q: a. the organizational effectiveness perspective. conectivo
A: Internal control is designed to provide reasonable assurance regarding the achievement of objectives…
Q: Company. has been reviewing its total cost over the last few weeks and has established the…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: In the absence of agreed profit distribution among partners, the most equitable way to distribute…
A: The net income from partnership business is allocated to each partner in the profit sharing ratio…
Q: . Suppose the gross sales of Lukah’s Coffee Shop for the month of April is Php 50,000. How much is…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: What is the total amount of S&A expenses for the fourth quarter that the company will report on its…
A: Solution Concept Selling and administrative expense The expenses that is incurred in…
Q: 2019 P 40,000 Accounts receivable, net Inventory 40,000 Current assets 120,000 Total assets, net…
A: Formulas: Age of receivables = 360 days / Accounts receivable turnover where, Accounts receivable…
TRUE OR FALSE
1.Investments are assets held by an entity for the accretion of wealth through distribution, for capital appreciation or for other benefits to the investing entity.
2.
3.Financial assets at fair value through profit or loss include both equity securities and debt securities.
Step by step
Solved in 2 steps
- Which of the following would be included in the financing section? A. loss on sale of investments B. depreciation expense C. increase in notes receivable D. decrease in notes payableWhich of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payableTRUE OR FALSE 1.Investments are assets held by an entity for the accretion of wealth through distribution, for capital appreciation or for other benefits to the investing entity. 2.Accounts Receivable, Notes Receivable, and Loans Receivable are financial assets because these represents a contractual right to receive cash in the future 3.Financial assets at fair value through profit or loss include both equity securities and debt securities.4.Financial assets at amortized costs include only debt securities. 5.Equity security represents an ownership interest in an entity. 6.Equity security represents an ownership interest in an entity. 7.If the financial asset is held for trading or if the financial asset is measured at fair value through profit or loss, transaction costs are expensed outright. 8.Significant influence is the power to participate in the financial and operating policy decisions of the investee entity but not control or joint control over those policies. 9.Amortization of…
- Investments in debt instruments are financial assets because they are A. Equity instruments of another entity. B. All of these. C. Contractual rights to receive cash or another financial asset from another entity. D. Cash equivalents.investments in equity instruments are financial assets because they are a) cash equivalents b) contractual rights to receive cash or another financial asset from another entity c) contractual rights to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity d) an equity instrument of another entityLO1 - Describe the specific elements of the balance sheet (assets, liabilities, and owners’ equity), and prepare a balance sheet with assets and liabilities properly classified into current and noncurrent categories. A balance sheet contains the following classifications: (a) Current assets (b) Investments (c) Property, plant, and equipment (d) Intangible assets (e) Other noncurrent assets (f) Current liabilities (g) Long-term debt (h) Other noncurrent liabilities (i) Capital stock (j) Additional paid-in capital (k) Retained earnings Indicate by letter how each of the following accounts would be classified. Place a minus sign (-) for all accounts representing offset or contra balances. Discount on Bonds Payable Stock of Subsidiary Corporation 3.12% Bonds Payable (due in six months) U.S. Treasury Bills Income Taxes Payable Sales Taxes Payable Estimated Claims under Warranties for Service and Replacements Par Value of Stock Issued and Outstanding Unearned Rent Revenue (six months…
- Statement I: Users of the funds from finanical institutions and markets have the obligation to return the same without interest. Statement II: Financial instituions and markets are also concerned with creating financial asstes. Statement I is true. Statements I and II are false. Statement II is true. Statements I and II are true.1. IS THE FOLLOWING STATEMENT TRUE or FALSE? “A financial security is simply a contractbetween the provider of funds and the user of these funds that clearly specifies the amount of money that hasbeen provided and the terms and conditions of how the user is going to repay the provider.”a. Trueb. False2. IS THE FOLLOWING STATEMENT TRUE or FALSE? “A share of stock represents ownership of acorporation divided up into units, so that multiple people can own a percentage of the business.”a. Trueb. False3. A consol is a bond that:a. Pays a fixed annual coupon amount, and when originally issued, is set to mature in 30 years.b. Pays a fixed annual coupon amount, and when originally issued, is set to mature in 50 years.c. Does not pay an annual coupon (i.e., the annual coupon payment is $0) but when it matures pays out thepar value of the bond.d. Pays a fixed annual coupon amount forever.e. Does not pay an annual coupon (i.e., the annual coupon payment is $0) and never matures6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.
- Which of the following statements are true regarding financial instruments? (i) Financial instruments comprise of both financial assets and financial liabilities (ii) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. (iii) Primary instruments are financial instruments in which an investor has made an investment in a specific instrument. (iv) A derivate instrument is normally linked to a primary instrument and transfers the financial risks inherent in the underlying primary instrument. Select one: a. (i) and (ii) b. (i) and (iii) only c. (i) only d. (i), (ii), (iii) and (iv)_______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected to be used…For each case of a financial asset that is not related to one another, explain (must be accompanied by an explanation) whether meeting the contractual cash flow test consists of only principal and interest: 1) Investments in debt instruments in the form of bonds with a specified maturity date. The bonds have a predetermined principal payment and interest on the principal amount payable is linked to the stock equity index on the stock exchange 2) Investments in debt instruments in the form of bonds from toll road management companies, whose contractual cash flows from these financial assets change according to the number of motorized vehicles that use certain toll roads. 3) Investments in debt instruments with a specified maturity date. A variable interest rate which gives the borrower the option of choosing a market rate of three months LIBOR for three months or one month LIBOR for one month