explain why GAAP requires full absorption costing (instead of variable costing) if absorption costing can be used to deceptively manipulate financial statements

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A: Under the comparitive analysis, the change in the balances is calculated in absolute and % terms. %…

Q: What is the book value of equipment purchased three years ago for $15,000 if it is depreciated using…

A: Sum of years digits = 1 + 2 + 3 + 4 + 5 = 15 Depreciation expense for year 1 = $15,000 ×115 = $1,000…

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A: Computation of the interest earned at the end of Melvin's investment period at each bank are as…

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A: As per the given information in the above question we must determine the carrying amount of the…

Q: 5. S1: Consolidated statements worksheet elimination of intercompany sales of inventory does affect…

A: Basic Concept of Consolidation of financial Statement.

Q: Cash 56500 Receivables short term 25800 Invertory Payables short term Payables lang term salaries…

A: Formula used: Working capital = Current Assets - Current liabilities Deduction of current…

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A: Contribution margin analysis is used to determine the various sales level. It mainly helps the firm…

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A: Additional paid in capital Excessof par - preferred  = Number of preferences shares issued × Premium…

Q: During an audit of Madison Company’s December 31, 2020 records it was discovered that the company…

A: As per IAS 8,Accounting policies, changes in Accounting estimates  and errors  Prior period errors…

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A: Lets understand the basics. For calculating net profit(loss), we will need to use below formula. Net…

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A: On January 2, 2019, U Co. purchased 75% of the outstanding shares of N Co. resulting to a goodwill…

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A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Q: 2. National Beverages company estimated the sales as follows Al Dahirah ( in Al Batinah (In units )…

A: The sales volume is the total number of units sold during the period.

Q: Vegas Company has the following unit costs: Variable manufacturing overhead $ 20 Direct materials 25…

A: The contribution margin is calculated as difference between sales revenue and variable cost.

Q: Calculate the missing values and express the answers rounded to two decimal places. Rate of Amount…

A: Markup on Cost = Profit/Cost x 100 Markup on Sales = Profit/Sales x 100 Profit = Sales - Cost

Q: Instructions: Identify each of the following accounts as an asset, Liability or Equity. ACCOUNTS…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

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A: Formulas: Number of Equivalent Units of Production = Inventory in process, beginning + Units Started…

Q: Exercise 4 Fagan Company uses a flexible budget for manufacturing overhead based on machine hours.…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 0,000 per year. Wh

A: Concept Under straight Line method, same amount of depreciation is charged on the Asset in each of…

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A: NPV is the difference between present value of asset and initial investment cost.its used for…

Q: Required information PA11-2 (Algo) Making Automation Decision (LO 11-1, 11-2, 11-3, 11-5) (The…

A: Lets understand the basics. In this question, we are required to calculate missing figures. After…

Q: chased from U Co. amounting to 18,000. These goods were sold by U at a 25% markup. 9

A: Business Combination:

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A: Consolidated Statement: Consolidated statement is the accounting report of both the parent company…

Q: a. How much was actually spent on labor for the week? b. What are the standard hours for the actual…

A: Solution:- a)Calculation of actual spent on labor for the week as follows under:-

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A: Manufacturing costs  is the cost incurred to manufacture a product. It includes  all prime costs and…

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A: Incremental IRR is the one of the method of finding best project among all and used for comparison…

Q: ntory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of…

A: As per the given information in the above question we must determine the carrying amount of the…

Q: Journalise transactions in multi-column purchase journal The chart of accounts of Gibson Ltd…

A: The question is related to Journal Entries for the month of July in the books of Gibson Limited.

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A: Introduction:- It is one of the depreciation method It is accelerated depreciation method. The…

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A: In this question, we should consider the data given to compute and explain the VAT. We need to…

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A: A joint arrangement is a that type of business formation which has been started by the parties…

Q: On June 30, 2019, New Company granted compensatory share option for 30,000 P20 par value ordinary…

A: Share Option For the employees share option which can be prevailed for retain the employees into the…

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Q: As a result of a slowdown in operations, Tradewind Stores is offering employees who have been…

A: The question is based on the concept of Cost Accounting.

Q: Prepare an amortization schedule for the first 3 payments (in $) of a $66,000 mortgage at 5% for 20…

A: Present Value Annuity Factor=1-1+rate-timerate

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A: Life cycle costing accounts for all costs incurred during a product's life cycle. When life cycle…

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A: Innovative financing can enable private investors to participate in health more quickly and bring…

Q: Cozy Corporation purchased supplies at a cost of S24,000 during the current year. At January1,…

A: Formula: Supplies expense = Beginning supplies + Purchases - Ending supplies

Q: On July 31, Bristlecone Pine Art Ltd. had a $54,500 balance in Accounts Receivabl- and a $3,100…

A: The allowance for uncollectible accounts records the estimated bad expense for the period.

Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…

A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

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A: Compensation in accounting is a sum of money that you pay to somebody because of some reason or an…

Q: Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM's defined…

A: Average total compensation- Average Total Compensation means the average of the Executive's yearly…

Q: Required information (The following information applies to the questions displayed below] Astro…

A: New variable cost per unit = $32 x 60% = $19.2 New total fixed cost = $82,400 + $149,000 = $231,400…

Q: Box Company (the transferor company) and Cox Company (the transferee company) amalgamate in an…

A: An amalgamation occurs when two or more corporations merge to form a new company. Because neither of…

Q: Trae debtors -Notes and 230,000 Expenses 70,000 accounts 65,000 Cash sales N/R discounted- Face…

A: Income Statement The purpose of preparing the income statement is to know the net income which was…

Q: The ending Retained Earnings balance of Lambert Inc. increased by $1.4 million from the beginning of…

A: Formula: Dividends declared and paid = Net income earned - Increase in Ending retained earnings…

Q: Cash 56500 Receivables short term 25800 Invertory Payables short term Payables long term salaries…

A: The working capital is calculated as difference between current assets and current liabilities.

Q: AA8 The adjusted trial balance of ZZZ Corp. on December 31, 2021 includes the following account…

A: Preference shareholders enjoy the preference of capital redemption in the event of liquidation of…