Identify which qualitative characteristic of accounting information is best described in each item below. (Do not use relevance and faithful representation.) a. The annual reports of Best Buy Co. are audited by certified public accountants. b. Black & Decker and Cannondale Corporation both use the FIFO cost flow assumption. c. Starbucks Corporation has used straight-line depreciation since it began operations. d. Motorola issues its quarterly reports immediately after each quarter ends.
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Identify which qualitative characteristic of accounting information is best described in each item below. (Do not use relevance and faithful representation.)
a. The annual reports of Best Buy Co. are audited by certified public accountants.
b. Black & Decker and Cannondale Corporation both use the FIFO cost flow assumption.
c. Starbucks Corporation has used straight-line
d. Motorola issues its quarterly reports immediately after each quarter ends.
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- Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to P. Bride Company ($000 omitted). Administrative expense Officers’ salaries $ 4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Interest expense 1,860 Instructions a. Prepare an income statement for the year 2020 using the multiple-step form. Common shares outstanding for 2020 total 40,550 (000 omitted). b. Prepare an income statement for the year 2020 using the single-step form. c. Which one do you prefer? Discuss.Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Novak Company ($000 omitted). Administrative expense Officers' salaries $5,587 Depreciation of office furniture and equipment 4,647 Cost of goods sold 61,257 Rent revenue 17,917 Selling expense Delivery expense 3,377 Sales commissions 8,667 Depreciation of sales equipment 7,167 Sales revenue 97,187 Income tax 9,757 Interest expense 2,547 Common shares outstanding for 2020 total 24,196 (000 omitted). Prepare an income statement for the year 2020 using the single-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Sunland Company ($000 omitted). Administrative expense Officers' salaries $ 5,593 Depreciation of office furniture and equipment 4,653 Cost of goods sold 61,263 Rent revenue 17,923 Selling expense Delivery expense 3,383 Sales commissions 8,673 Depreciation of sales equipment 7,173 Sales revenue 97,193 Income tax 9,763 Interest expense 2,553 Common shares outstanding for 2020 total 24,124 (000 omitted). Prepare an income statement for the year 2020 using the multiple-step form. (Round earnings per share to 2 decimal places, e.g. 1.48.)
- Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2025 informative related to P. Bride Company ($000 omitted). Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Income expense 1,860 Prepare an income statement for the year 2025 using the multiple-step form. Common shares the outstanding for 2025 total 40,550,000 (000 omitted). (Round earnings per share to 2 decimal places, e.g. 148. Enter other revenue and gains before other expenses and losses).Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2025 informative related to P. Bride Company ($000 omitted). Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Income expense 1,860 Prepare an income statement for the year 2025 using the single-step form. Common shares the outstanding for 2025 total 40,550,000 (000 omitted). (Round earnings per share to 2 decimal places, e.g. 148).Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. Administrative expense Officers' salaries $4,900 Depreciation of office furniture and equipment 3,960 Cost of goods sold 60,570 Rent revenue 17,230 Selling expense Delivery expense 2,690 Sales commissions 7,980 Depreciation of sales equipment 6,480 Sales revenue 96,500 Income tax 9,070 Interest expense 1,860 1) Prepare an income statment for the year 2014 using the single-step form.
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- Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. d. Moss Corporation closes the books each month and prepares monthly financial statements. Violation: (Yes/No) Applicable Assumption/Principle: e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US Violation: (Yes/No) Applicable…Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. d. Moss Corporation closes the books each month and prepares monthly financial statements. Violation: (Yes/No) Applicable Assumption/Principle: e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US Violation: (Yes/No)…. A list of concepts is provided below in the left column, with descriptions of the concepts in the right column. There are more descriptions provided than concepts. Match the description to the concept. ________ Cash-basis accounting. ______ Fiscal year. _______ Revenue recognition principle. _______ Expense recognition principle. (a) Monthly and quarterly time periods. (b) Accountants divide the economic life of a business into artificial time periods. (c) Efforts (expenses) should be recognized in the period in which a company consumes assets or incurs liabilities to generate accomplishments (revenues). (d) An accounting time period that starts on January 1 and ends on December 31. (e) An accounting time period that is one year in length. (f) Companies record revenues when they receive cash and record expenses when they pay out cash. (g) Companies record transactions in the period in which the events occur. (h) Recognize revenue in the accounting period in which a performance…