which metric is used as the profitability metric and explain what it evaluate?
Q: 3. Mala-Prohibita Company has annual credit purchase of P720,000 with a usual term of 3/10, net 35. ...
A: The cost of credit is a calculation formula used to derive the cost of payment discount. The formula...
Q: on Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets ...
A: solution concept common size balance sheet The vertical common size balance sheet ex...
Q: Safety Hospital purchased a new MRI equipment. The cost is $450,000.00. Charges to install the equi...
A: Cost = $450,000 Installment cost = $50,000 Useful life = 5 Years
Q: Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in...
A: Dividend Income - Dividend is the amount circulated to shareholders of a business. Companies use it ...
Q: COCO Inc. has a credit agreement which is revolving fund with its bank under which it can borrow up ...
A: THe question is based on the concept of the Financial Management.
Q: j. Discount the total benefits received in the future and put into column. Use 12% as your discount ...
A: Given Table:
Q: Journal the entries. Record the following transactions on page 21 of the journal. May 20 Sold merch...
A: Journal entry is a process of recording and classifying business transactions into books of accounts...
Q: tement of changes in owners equity summarizes the effects on the capital account of the various busi...
A: Solution: The statement of changes in owners equity represents the changes in balance of equity from...
Q: Determine the cost of goods sold under LIFO:
A: Answer Cost flow statement using LIFO Cost of Goods Available for Sale Cost of Goods Sold...
Q: hich of the following accounts is a contra account? Select one: a. Drawing b. Transportation In c....
A: Solution: A contra account is related to a main account and used in a general ledger to reduce the v...
Q: Sawi Ak Co. acquires copyright from authors, paying advance royalties in some cases and in others, p...
A: Royalty is a recurring payment given by the asset's user to the asset's owner or creator in exchange...
Q: Walrus Co. Variable Costing Income Statement Sales 5,500,000 Variable Cost of Goods Sold: Direct Mat...
A: In absorption costing the cost of manufacturing are recorded to arrived at net profit. absorption co...
Q: What is the role of ethics in accounting and business?
A: Ethics means the principles that govern a person's behavior and activities. These are the morals tha...
Q: lassified as a finance lease or as an operating lease.
A: In case of a financial lease only, assets or liabilities are created. In case of operating lease agr...
Q: Black Widow Corporation engaged you for the first time to audit their financial statements as of and...
A:
Q: On January 1, Year 1, Zulu Co. sells and immediately leases back a building from X-Ray Inc. The buil...
A: answers Calculation of Normal profit :- Present Value of Lease payments:
Q: Function: ROUND; Formula: Add, Multiply, Divide; Cell Referencing Using Excel to Cost Inventory PROB...
A:
Q: Z. Net, an accountant, owns a business with the following assets and liabilities. Please note Capita...
A: A t-account is a log or list of accounts that keep track of account transfers
Q: On January 1, 2019, Kyle company established a share appreciation rights plan to key employees whe...
A:
Q: An Ontario employee is paid on a bi-weekly pay schedule. His Gross Earnings for this pay cycle is $2...
A: Withholding refers to the portion of an employee's wages that is excluded from the paychecks of e...
Q: Susan Carrie is planning to sell her special pottery for $25 per unit. She purchases units from a lo...
A: The breakeven point is the level of production at which a product's costs equal its revenues. The br...
Q: Using the business transactions below, complete T-accounts for the Smith Company. I have provided a ...
A: T-accounts are the statements prepared after recording the journal entries. These are prepared to ma...
Q: Pleasant Heating & Cooling (PHC) Co. manufactures furnaces and air conditioners that are in great de...
A: The organization must identify performance obligations in the contract at the beginning of the contr...
Q: 2. M. Knight owns a business called "Accounting Done Right" which has the following account balances...
A: 1. Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the balan...
Q: wner borrowed P4,000,000 in notes from the bank and paid of notes of P3,000,000 and interest of P240...
A: Computation of the net income for the current year. Effect on Equity Increase Decrease ...
Q: The following production estimates were made for the coming year: Total quilts to be produced 5 A. 2...
A: Manufacturing overhead, also known as indirect costs, which are incurred during the process of produ...
Q: QUESTION 10 Calculate the missing Operating Expenses in the following multi-step income statement: S...
A: Multiple income statements are prepared to segregate the income and expenses into different categori...
Q: Statement of Cash Flow Preparation Activity Consider the following journal entries: Entry |(a) cash ...
A: All 11 transactions denoted by their sequence no.s are explained in Step 2 that in which Cash Flow t...
Q: Anne York is a sole trader who started the business of buying and selling furniture in Brighton on t...
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is kno...
Q: 9.Hong Kong Clothiers reported revenue of $5,150,000 for its year ended December 31, 2021. Accounts ...
A: Answer - Cash collected from customers = Sales Revenue + Opening Account Receivable - Closing Accou...
Q: Current accounting standards require that the discount rate used for pension plans be: Multiple ...
A: As per IAS 19 discount rate used for pension plans be considered as following
Q: Karane Enterprises, a calendar-year manufacturer based in College Station, Texa business in 2019. In...
A: Taxable income refers to the income gained by an entity on which the authorised government levied a ...
Q: Presented below is selected data from the financial statements of Vert, Inc. for the current and pri...
A: Vertical analysis: It is a method of analyzing the financial statement in which each item is shown a...
Q: The unadjusted trial balance for Lamb Company at December 31, 2022 is as follows: LAMB COMPA...
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the org...
Q: Does the coverage of the Statute of Frauds make sense as it currently stands? Would it be better to ...
A: Introduction:- Fraud is defined as intentional deception with the intent of gaining an unfair or unl...
Q: 1. How much is overstatement(understatement) of the retained earnings by the end of 2019? (if UNDER,...
A: Retained Earnings The purpose of keeping retained earning is to reserve the amount of profit which a...
Q: AB Company had 11,000, par P20 shares issued and outstanding on January 1, 2021. On March 15, the en...
A: A Stock Split takes place when the Companies want their shares to be more tradeable as well as affo...
Q: in financial assets, discuss the following: Explain what your investment portfolio would look like. ...
A: My portfolio would consist of 30% risk-free assets, 50% index funds, and 20% high-return equity. The...
Q: Using the information below from Planters, Inc., what is the cost per un under both variable and abs...
A: Using absorption costing, the product cost comprises of fixed and variable cost. Using variable cost...
Q: The financial statements for Wiley Ltd are presented below: Statement of profit or loss and othe...
A: Operation Cycle The calculation of operation cycle is to first to determine the inventory turnover p...
Q: Question 2 A Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pa...
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...
Q: Assume that DBP Leasing Corp. and Minasugbo Inc. sign a lease contract effective on January 1, 2019 ...
A: DBP leasing leases to Minasugbo a bulldozer. Therefore, Lessor= DBP leasing Lessee= Minasugbo The r...
Q: • Fair value of the asset: $400,000. • Useful life of the asset: 6 years with no salvage value. • Le...
A: Introduction:- Leasing is an agreement between parties in which the right to use the asset is trans...
Q: Depreciation Problems: 1. Strand Corp purchases a machine on 4/1/20. Cost $110,000, costs to ship $5...
A: Solution Given Date of purchase 4/1/20 Cost of asset =110000+5000+5000 =120000 Salva...
Q: Use the following to answer questions 8 – 11 The following information pertains to RC, Inc. for the ...
A: Estimated uncollectible accounts = Accounts receivable x % uncollectible accounts Bad debts expense ...
Q: Match each description with the appropriate financial statement. A. Income Statement Reports the amo...
A: Solution: Income statement shows income and expenses during the period. Balance sheet shows Balance ...
Q: The data provided below is the same for each item in a set of interrelated items about the FIFO appr...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: the amount allocated to automobile loans. a. Formulate a linear programming model that can be used ...
A: *As per Bartleby guidelines, we are supposed to answer only three subparts. Kindly repost the remain...
Q: 167. Pearce CompanyPearce Company uses a standard cost system for its production process. Pearce Com...
A: Solution: Variable overhead spending variance = (SR - AR) * AH Standard rate of variable overhead = ...
Q: Use the following information for the Exercises below. Textra produces parts for a machine manufact...
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing over...
which metric is used as the profitability metric and explain what it evaluate?
There are two types of accounts that require adjustments, (1) explain what they are and (2) provide an example for each.
Explain the following terms: (1) Depreciation, (2)
Briefly explain why land does not
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Which of the following represents an event that is less routine when accounting for long-term assets? A. recording an asset purchase B. recording depreciation on an asset C. recording accumulated depreciation for an asset or asset category D. changing the estimated useful life of an assetRead each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Understandability Relevance Faithful representation Comparability Depreciation Consistency Materiality Conservatism Operating cycle Current asset Current liability Liquidity Working capital Current ratio Single-step income statement Multiple-step income statement Gross profit Profit margin Auditors report An income statement in which all expenses are added together and subtracted from all revenues. The magnitude of an accounting information omission or misstatement that will affect the judgment of someone relying on the information. The capacity of information to make a difference in a decision. An income statement that shows classifications of revenues and expenses as well as important subtotals. The practice of using the least optimistic estimate when two estimates of amounts are about equally likely. The quality of accounting information that makes it comprehensible to those willing to spend the necessary time. Current assets divided by current liabilities. The quality of information that makes it complete, neutral, and free from error. An obligation that will be satisfied within the next operating cycle or within one year if the cycle is shorter than one year. Current assets minus current liabilities. Net income divided by sales. For accounting information, the quality that allows a user to analyze two or more companies and look for similarities and differences. An asset that is expected to be realized in cash or sold or consumed during the operating cycle or within one year if the cycle is shorter than one year. The ability of a company to pay its debts as they come due. For accounting information, the quality that allows a user to compare two or more accounting periods for a single company. The process of allocating the cost of a long-term tangible asset over its useful life. The period of time between the purchase of inventory and the collection of any receivable from the sale of the inventory. Sales less cost of goods sold. The opinion rendered by a public accounting firm concerning the fairness of the presentation of the financial statements.As generally used in accounting, what is depreciation? a. It is an accounting process which systematically allocates long-lived assets cost to accounting periodsb. It applies only to long-term lived intangible assetsc. It is a process of asset valuationd. It is used to indicate a decline in market value of a long-term lived asset
- Which sentence is incorrect? Select one: a. Depreciation is not the actual change in the value of the asset. b. Accumulated Depreciation account has effects on the cash flow statement. c. Accumulated Depreciation is called a contra asset account. d. Depreciation is the process of allocating the cost of an asset to expense, not a valuation process.Which of the following statements are TRUE? a. The reason for including a treatment of depreciation in this book is to allow you to develop a reasonably accurate report to the owners of a business regarding its value at any given point in time. b. Depreciation spreads investment costs over the useful life of equipment purchased. c. Depreciation allowances can be treated as expenses because they are cash flows. d. Depreciation affects income taxes, which are cash flows.Depreciation can be defined as the measure of cost or revalued amount of economic benefits of a tangible fixed asset that has been consumed during a period. State the principle or conventions that support depreciation and indicates the different measures of this cost (depreciation) as an expense, and assess each measures’ input on Income Statement and the Balance Sheet.
- Which of the following best describes depreciation? A.ccounts for the market value of a physical asset B.Part of the cost of a physical asset allocated as an expense to each time period in which the asset is used. C.Shows the increase in value of a physical asset over the asset’s useful life D.Shows the drop in value of an asset when the asset is first used by an entityWhich of the following statements if not true? a. Depreciation is the process of allocating the purchase price of an asset minues its residual value to expense, for each period benefited by the asset. b. The cost of an asset includes all acquisition costs necessary to obtain the benefits to be derived from the asset. c. The service life of an asset is the measure of the number of years of service expected from the asset before its disposal. d. The residual value of an asset is the difference between the expected book value of the asset at the end of its service and the cost of disposal.Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext
- Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers to the process of converting assets to expenses.B. Only the purchase price of the asset is capitalized.C. Capitalizing a cost means to record it as an asset.D. Capitalizing costs results in an immediate decrease in net income.For accounting purposes, depreciation refers to the process of ________. A. estimating an asset's current market value B. allocating the cost of a plant asset to expense over its useful life C. recording the decline in the market value of an asset to its book value D. determining the selling price of an assetWhat are depreciation and its purpose? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Why or why not? Should the financial statements reflect the value of fixed assets? Why or why not?