Importance of Balance Sheet in understanding Financial statements

Q: Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the…

A: Prepaid insurance is the amount of insurance premium paid before it becomes due.

Q: The difference of gross investment in the lease and net investment in the lease of the lessor is?…

A: Solution: Gross investment in lease: The sum of 1. The lease payments receivable by a lessor under a…

Q: S1: The salaries of the Chief Justice and associate justices of the Supreme court are tax-exempt.…

A: Individuals and corporations pay income tax, which is a sort of direct tax levied by the central…

Q: Cecelia, a human resources manager, is working on an ethics policy for the company she works for.…

A: Ethical behavior: It implies to the application and adherence to the moral principles and values in…

Q: Green Company overstated its inventory by $50 million at the end of 2021. The discovery of this…

A: As per IAS 8, Accounting policies, changes in accounting estimates and errors  If material error…

Q: Required: Identify book of prime entries. Prepare the specialized journal Prepare the subsidiary's…

A: Journal is Book of Prime entry because all business transactions are recorded first in Journal Book.…

Q: On January 1, 2021, Robin Company received a grant of P1,500,000 frorm the government to subsidize…

A: The grant is the amount that is received from the government to fulfill a certain activity. It is a…

Q: Required: Present the operating activities section of the statement of cash flows for Guy's Gear…

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: Devon Corp. is trying to decide whether to lease or purchase a piece of equipment. The total cost…

A: While making the decision between purchasing or leasing the Equipment, net present value between…

Q: Valiant Company reported the following analysis of current receivables at year-end: Trade accounts…

A: A key accounting concept is the buying and selling of things and services, with remuneration…

Q: Celgene Corporation purchased all of Receptos, Inc's outstanding stock for $7.6 billion in cash on…

A: Small business units are united to form a new combined unit, which is referred to as a business…

Q: narket value of is 80 million pon

A: Duration of security tells us that how much will be change in value of security with change in…

Q: than 1500 sets of exam papers per hour. The theoretical capacity of the FL200 is

A: The theoretical capacity of the FL200 is (a) 2000 sets of exam papers per hour.

Q: Happy Inc. provided the following information: Beginning balance of Accounts receivable P5,000,000…

A: The accrual basis accounting records the revenue and expenses of the current period when they are…

Q: ABC Corporation granted by the government to operate a franchise with their respective receipts for…

A: Franchise grantees: Gas and water utilities Radio and television broadcasting companies whose…

Q: he lessor will recognized the same gross profit whether the residual value is guaranteed by the…

A: given statement 1 is about direct finance  lease . it is correct.   statement 2 about indirect costs…

Q: Which of the following would be an expense for the business a. Buying camping equipment b. Paying…

A: The income statement records the revenue and expenses of the current period. The net income is…

Q: Sherwin Company uses straight line depreciation for its property, plant, and equipment, which,…

A: Depreciation expense on property, plant & equipment is credited to accumulated depreciation…

Q: *Note any error of 2019 ending inventory is carried over to 2020 as an error of the beginning…

A: Introduction:- The following are inventory valuation methods as follows under:- First-In, First-Out…

Q: Boxwood Company sells blankets for $31 each. The following was taken from the inventory records…

A: LIFO is the inventory valuation method as per which the goods that are bought at last are to be sold…

Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…

A: In the given question, P 55,000 is invested today at 5% compounded Semi-annually for 10 years and…

Q: 20.Courts do not prohibit people from using elsewhere the general knowledge and skills they…

A: An employee develops a range of skill sets and obtains necessary knowledge during his employment.

Q: 3. RJ Coley visited Malcolm Variety Store to purchase the following items: These prices are…

A: Introduction General Consumption Tax (GCT) is tax applicable on purchase and sale of goods and…

Q: Daniel Manufacturing Company uses the FIFO costing method to account for their inventories.  The…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: rue or False: Sarah is a manager who pays workers less than what they deserve because she knows they…

A: Any action can be termed as illegal only when it is against the law. An unethical action that is not…

Q: Ibe Corporation has an EUP of 248,750 units. Beginning inventory units of 22,500, 40% incomplete;…

A: The conversion cost per equivalent unit is calculated as total conversion cost divided by number of…

Q: Explain the data provided

A: Gross profit is that profit of a company that is left over after accounting for all costs that the…

Q: /Quiz FIN 204/E2 Financial Management I. Recognize revenue when it is fully earned. II. Match…

A: The accounting is a process to classification the transactions, record the transactions and prepare…

Q: Masay Company provided the following information for the Problem 9-2 (IAA) current year: Sales…

A: preparation of income statement are as follows

Q: nswers are correct or not. Ps. In your solution, you identify the given and the what is being…

A: Time period id denoted as ‘n’ and interest rate is denoted as ‘i’. Increase in revenue (R) can be…

Q: TRANSACTION IMr. U contributed 600,000 Obtain loan 400,000 3Purchased Inventory 200,000 cash basis…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Which of the following is a legal person? Note that it could be several. A State A dog A Limited…

A: A company is a voluntary group of persons formed through the process of law.  Types of company:…

Q: Which of the following would not be included as a reconciling item in reconciling the governmental…

A: Reconciliations helps in detecting the mistakes, errors, frauds by checking the accuracy of the data…

Q: On January 1, 2021, Gringo Company had capitalized cost of P5,000,000 for a new computer software…

A: Units of activity method is a depreciation method in which the depreciation is calculated based on…

Q: 2012 $ 5,800 2013 $4,200 $1,700 • $3,000 2010- 2011e 2014e 2015ee Cashe $ 5,200 $ ???? « Accounts…

A: Ratio analysis helps to analyze the financial statements of the company. The management can take…

Q: The president of the retailer Prime Products has just approached the company's bank with a request…

A: Budgets are forecast that help make an estimate of various incomes and expenses. Budgets help in…

Q: or the year ended Dec. 31, 201X, CACA Co. reported pre-tax financial income of 9,500,000. Its…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: Generally accepted government auditing standards (GAGAS) can apply to a:   Group of answer choices…

A: Auditing standards are those which are provided by the appropriate organizations for the auditors so…

Q: Identify the natural balance of each of the following accounts (DR = Debit, CR = Credit) - Inventory…

A: As per the Golden rules of accounting:     • For Real Accounts, the rule follows as: debit what…

Q: Calculate the gross profit and the sales figures using the income statement approach.

A: Income statement approach refers to the approach which is used to determine the gross profit and it…

Q: A bank offered a commercial customer a one-year loan. A discounted note with a nominal rate of 13%…

A: A loan charges a percentage of the principal as interest to a borrower (the amount borrowed). The…

Q: 2,032,000 1,890,000 1,440,000 180,000 80,000

A: . Outstanding Checks have been added because the entity has already credited Bank a/c in books but…

Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…

A: Existing data: Selling price per unit                    20 Less: Variable expenses per unit…

Q: Ludwig Company's prepaid rent was $9,000 at December 31, 2020, and $13,000 at December 31, 2021.…

A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

Q: Coke Company had 2 million shares of common stock outstanding all through 2020. On April 1, 2021, an…

A: Formula: Earnings per share = (Net income - Preferred dividend) / Weighted average outstanding…

Q: Juan Company purchased four convenience store buildings on January 1, 2015 for a total of…

A: Impairment loss = Carrying value of the assets - Recoverable value of the assets where, The…

Q: What is a Balance Sheet

A: A balance sheet's components Asset: Liability: Owner's equity:

Q: Maurice, single, has wages of $215,114 and net investment income of $40,000 in 2021. His AGI (MAGI)…

A: Net investment income tax is the tax on net investment income and is charged by Internal Revenue…

Q: Nicanor retired at the end of 2022 after rendering 25 years of  continuous services for ABC…

A: Introduction: 'Gross compensation' refers to the total of compensation and perks paid to or on terms…