When an asset or liability is initially recorded, what determines its amount? The Replacement cost The initial measurement  The future value of future cash flows The present value of future cash flows

Q: On January 1 2020, Philippine Airlines purchased 20% of Cebu Pacific's total outstanding ordinary…

A: Introduction: If an investor acquires between 20 to 50% stake in the investee company then it is…

Q: Net operational cash flow is a metric created by cash-basis accounting. Explain the metric in detail

A: Cash basis accounting: According to cash basis of accounting, revenue should be recognized at the…

Q: Describe how and why managers of companies use budgets. In doing so, cite three advantages of using…

A: Ans. Companies need to prepare budgets on a regular basis so to find out the flow of business and…

Q: 3. Morell Company acquired a property costing P300,000 during the beginning of the year. It has a…

A: Under Declining Balance Method, Depreciation Rate = 1 - (Residual Value / Cost)^(1 / Useful Life)

Q: Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to…

A: Depreciation is the reduction in value of asset over the period of time. Under straight line method,…

Q: Mr Paul has worked in AAA Limited as an accountant for the last two years. He prepares journal…

A: Internal control refers to the process, rules which are implemented through company in order to…

Q: Question. Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the…

A: Introduction: Common stocks are securities that reflect individuals' ownership in a firm as well as…

Q: Gwen is the managerial accountant in charge of Company A, which sells water bottles. She previously…

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

Q: Markus plans to attend a football match The ticket costs 90 € additional travel costs and parking…

A: Opportunity cost means cost of opting out next best alternative. If one alternative is taken, then…

Q: The following factors may affect the group engagement team’s involvement in the work of a component…

A: The component auditor represents the auditors who would perform the audit function on a financial…

Q: When a private equity firm purchases the outstanding equity of a publicly traded firm (thereby…

A: Leveraged buy out :  For acquisition of a company by financing this transaction through debt is…

Q: Beginning of Year: End of Year: Assets $25.000 Net Income (Loss) 63000 $63,000 Owner, Withdrawals…

A: Owner's equity is a cost of ownership of assets, that can be liquidated for the shareholders or are…

Q: Net fixed assets" 403,000 Land 49,440 49,600 Total assets 618,000 620,000 30,900 24,800 Notes…

A: Cash flows statement is one of the financial statement for the business. This shows all cash inflows…

Q: Indicate in the space provided by each item whether it would appear on the income statement (IS),…

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

Q: Regional operating headquarters (ROHQ) is a branch of a multinational corporation that provides a…

A: we need to understand the definition of regional regional headquarters and regional operational…

Q: A company that builds and sells desks has a weekly overhead including salaries and plant costs of…

A: Break even point is a level sale where there is no profit and no loss situation. If a company sales…

Q: A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he…

A: Accounting Profit = Total Revenue – Explicit Costs Explicit cost are the actual cost of the…

Q: The following data pertain to an investment proposal (Ignore income taxes.):   Cost of the…

A: Net present value is the value which is calculated by discounting the future cash inflows and then…

Q: On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as…

A: Introduction: A corporation's stock shares are measured in shares. Shares serve as a financial asset…

Q: A bicycle manufacturer Zelo Inc. currently produces 8,000 units a year and expects output levels to…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: In history's accounting practise, what function does an Accounting Information System play?

A: Accounting information system (AIS) is a collective mechanism wherein information or data related to…

Q: Use the following transaction to answer the all of the questions. A company purchases inventory on…

A: Purchases Purchasing is the organised possession of goods or services on behalf of the buyer.…

Q: 5.The amount computed under the percentage of credit sales method is the     bad debts expense for…

A: Every business runs for the purpose of generating sales and profit. Sales revenue means amount of…

Q: For their net revenue from sources exclusively within the Philippines, proprietary educational…

A: Tax Rate: An person or corporation's tax rate is the proportion at which they are taxed. In the…

Q: become entrepreneurs

A: An entrepreneur is a person having some new idea or way of doing a business. He is the one who is…

Q: Karen Corporation has engaged Gelai, CPA, to issue a report on the accuracy of product quality…

A: Attestation Engagement: An engagement consisting of an examination, review, or application of…

Q: The cost per unit associated with the production of Xen Merchandising are the following: Direct…

A: Product cost is incurred by the business entity when the product is manufactured and services are…

Q: Activity 1 - Computing Net Income or Net Loss, Collectibles and Expenses Directions: Apply the basic…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: The Central Valley Company is a manufacturing firm that produces and sells a single product. The…

A: Variable  cost of goods sold = (386400-359400)/(5900-5400) = 54 Fixed cost of goods sold = 386400…

Q: 2) Troy Ltd purchased a new machine on 1 October 2016 at a cost of $114,000. The entity estimated…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Exercise 4-9 Preparing closing entries and a post-closing trial balance LO P2, P3 The following…

A: The closing entries are made at the end of the accounting period. The closing entries are prepared…

Q: Which of the following is a disadvantage of general partnerships? ( a) The partners in a general…

A: Under general partnership partners have unlimited liability. Partners of general partnership will be…

Q: Who among the following is not a cost of a product? The expense of the company's fuel. The cost of…

A: Product cost: Product cost is the cost which incurred to manufacture a product. It means it is a…

Q: In Classification Of Cost, What Is A Business Situational Example of the ff:

A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…

Q: b. d. 1. After extracting a tri- a. Rent $200 has be The wages accour c. Payment made to Payment for…

A: Comment ; Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Businesses that use OSD are permitted to deduct the cost of goods sold or the cost of care. False…

A: Business activities in every country are governed by certain Business laws that have direct…

Q: Account Balance* $ 19,400 66,200 49,400 147,800 61,400 2,000 2,600 27,800 ? 458,000 54,200 134,000…

A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…

Q: 2. An intern suggested that the company use activity-based costing to cost its products. A team was…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: On January 1, 2018, Sunrise Corporation issued $4,000,000 face value, 8% coupon, 5-year bonds dated…

A: Bond Issue: The issuance of bonds is one method that businesses may use to obtain capital. A bond…

Q: True false

A: The price-earnings ratio is a ratio that tells investors what is the worth of the company they have…

Q: Why accounting information elements that may affect by stakeholders

A: Accounting is the process of recording, classifying and summarizing accounting information in such a…

Q: 1. Compute the following ratios for the past two years. (Do not round intermediate calculations.…

A: calculation of above requirement are as follows

Q: The auditor’s risk assessment procedures should always include the following, except       a.…

A: Risk assessment processes should be performed by the auditor to provide a foundation for identifying…

Q: he following book and fair values were available for Westmont Company as of March 1.…

A: In case of recording acquision entries,fair value needs to be taken not book value.Differerence…

Q: An intern suggested that the company use activity-based costing to cost its products. A team was…

A: Introduction: The activity rate is the ratio of the number of active people (employed and…

Q: On June 1, 2019, Hansen Company purchased twenty $1,000 Francisco Company bonds at par and…

A: As per US GAAP, an asset should be impaired if there are any circumstances which leads to reduction…

Q: A company just starting its business made the following four inventory purchases in June:

A: Cost per unit. = Total Cost / No.of units purchased   June 1 : $832/260 = $3.2 June 10 : $1056/320 =…

Q: The warehouse had a fire on November 7, 2021, which resulted in the destruction of merchandise worth…

A: Loss by fire is one of the loss that is being incurred by the business on inventory lost by fire.…

Q: Bond Company has 50,000 ordinary shares held by Sassa Company. Sassa acquired these 50,000 shares in…

A: Step 1 Journal Entries In the Books of Bond Company Date Particulars Amount () Amount () Aug.…

Q: 8. Kopi Company acquired all of the outstanding ordinary shares of an acquiree paying P9,000,000…

A: Excess of price over the fair value of net identifiable asset is called goodwill. Goodwill arises…