Why is it necessary for accountants to assume that business entity will remain a going concern?
Q: The accounting records of Friends Company provided the data below: Net income Depreciation expense…
A: Cash Flow From Operating Activities :— Cash flow from operating activities does not include long…
Q: QUESTION 3 Khalish is the auditor of Bright Bhd. preparing the final audit for the year ended 30…
A: A management representation statement or letter seems to be a type of letter produced by an…
Q: Obrey Company uses the direct write-off method. March 11: Dexter determines that it cannot collect…
A: Solution Obrey Company is using write-off method. The following are the journal entries for the…
Q: Brilliant Company sold a franchise to sell its products for P5,000,000 on January 1, 2021. The…
A: The revenue to be recognized would be annual amount of installment fee and the commission to be paid…
Q: finding the common stocks for year 2-4
A: Common stock refers to the security which states the ownership of business and under liquidation,…
Q: Required information [The following information applies to the questions displayed below.] Marco…
A: Gross Profit :— It is the difference of sale & cost of goods sold. Ending balance of…
Q: Inventory records for Dunbar Incorporated revealed the following: Date Transaction Apr. 1 Apr. 20…
A: Introduction: WACC is a key input in discounted cash flow assessment and is frequently discussed in…
Q: Given the following, the only item that will generally be included in relevant cost analysis is:…
A: Introduction: The phrase "relevant cost" in managerial accounting refers to avoidable costs that…
Q: Reported revenues 12k supplies expense 3k and net income is 2k for the most recent period. If the…
A: Revenues are the incomes earned by an entity during a period, expenses are the amounts incurred on…
Q: ual to $320,000. Tiptop had interest expenses of $80,000 and depreciation expenses of $75,000 durin…
A: Explanation of concept Tax:- A tax is the compulsory payment which is imposed by the government on…
Q: At the beginning of the year a sole proprietorship had liabilities of 100k and owners equity of 96k.…
A: Asset :— Assets is Something which Containing economic Value & Future Value. It is the Part of…
Q: plus Q2 Mathews Company exchanged equipment used in its manufacturing operations $12,500 in cash for…
A: According to the given question, we are required to compute the prepare the journal entries of both…
Q: Examples for the permanent differences between financial reporting and reporting for the IRS in…
A: Answer:- Financial reporting meaning:- The process for recording and communicating financial…
Q: A company's financial statement of financial position shows customers of 24k accounts receivable 30k…
A: Statement of financial position is one of the financial statement which reports the assets,…
Q: 7-5: Massey Electronics Massey Electronics manufactures heat sinks. Heat sinks are small devices…
A: Predetermined Overhead rate=Estimated overhead costAllocation base
Q: Solomon, Inc. sells fireworks. The company's marketing director developed the following cost of…
A: Budgets are the estimates or forecasts that are made for future period of time. Budgeted cash…
Q: During June 2022, your company recorded depreciation of $8,000 on equipment in your factory. What…
A: Depreciation is used to denote a decrease in the value of Fixed Assets in accounting. The…
Q: 1. How much is the Franchise Revenue to be recognized in 2021? 2. How much is the Revenue to be…
A: As per revenue recognition principle, revenue is recognized only when it is realized and earned. The…
Q: a) Given that Weber Inc. employs a perpetual inventory system, calculate the cost of goods available…
A: Inventory refers to all the items of goods, and materials held by a business for selling in the…
Q: 7. Etta earns a yearly base salary in addition to a commission on the sales she makes. If Etta made…
A: Lets understand the basics. Sales commission is paid to employee for making sales. When we have…
Q: When a company issues 27,000 shares of $2 par value common stock for $20 per share, the journal…
A: A company can issue its share at par, premium or discount. When the share is issued at premium, then…
Q: How much is the Inventory on January 1 of the Branch that came from the Home Office?
A: In case of group entities usually they sell the products to their group with margin. In case of…
Q: Prepare an amortization schedule for the Minco Inc. bond showing only 2020. (Round your intermediate…
A: You have quoted multiple questions under a single question and the bond amortization schedule is the…
Q: 1. On May 1, 2008, Jose and Pedro formed a partnership and agreed to share profits and losses in the…
A: Introduction: A partnership is a contract or association formed by two or more partners to invest…
Q: Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of…
A: The productivity ratio can be calculated by dividing the number of phones manufactured by total…
Q: What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?
A: Introduction: Income and expenditure account to determine the surplus or deficit of income over…
Q: Royal Bank agrees to lend Backyard Corporation $200,000 on January 1. Backyard signs a $200,000, 4%,…
A: A note payable is a written debt instrument. Its Represents money borrowed by a company or…
Q: Prepare two T accounts for each transaction. On each T account, select the account title of one of…
A: After maintain of journal entry the accounts are posted to T-accounts. It is an important part of…
Q: Calculate earnings per share. Earnings per share = $Answer b) Calculate the dividend yield.…
A: Earning per share :— It is the value of earnings available to equity shareholders per number of…
Q: Prepare Liquidators Final statement of Account.
A: When a Company is get liquidated, A liquidator has been appointed. All the Assets are realized and…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Bad debts accounts refer to the amount that has been written off because the customer is unable to…
Q: Brave Company maintains a branch in Davao City and makes inventory shipment to its branch at 20%…
A: The Allowance for overvaluation of branch inventory account, also called Unrealized profit in branch…
Q: Silver Incorporated reported the following results from last year’s operations: Sales $…
A: Return on investment (ROI) :— It is the ratio between net operating income and average operating…
Q: Jack exchanged a forklift used in his business with Joe for a different forklift. Jack's forklift…
A: IAS 16 mentions that exchange of property, plant & equipment, regardless of whether the assets…
Q: What is the financial analysis of each year?
A: It is given in the question only the liquidity ratios and on that basis only the financial analysis…
Q: A Corp. leased equipment to a lessee on January 1, 2021. The lease is for an eight-year period…
A: A Corp. leased equipment to a lessee on January 1, 2021. The lease is for an eight-year period…
Q: Exercise 10-14 Ordinary repairs, extraordinary repairs, and betterments LO C3 Oki Company pays…
A: The costs incurred on fixed assets to increase the productivity or useful life of asset, are…
Q: Compute the cost of ending inventory for the best selling purse based on the following:
A: Special Identification Method: The Specific identification method identifies the cost of each item…
Q: Assume dividends tax at a rate of 20% A company has had two issues of Class B shares, which have no…
A: Dividend is Always declared on Face Value of the Share Face Value Per Share = R2 Computation of…
Q: TB MC Qu. 5-63 (Algo) Manufacturing overhead: Metal Company Metal Company budgeted $564,000…
A: The traditional method of overhead allocation is based on a predetermined overhead rate. The…
Q: His total home office expenses are: His net business income based on notes 4 to 6 above is : 7. Paul…
A: 6. Total office expenses = 25% of personal residence Total cost associated with Paul's home is as…
Q: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate…
A: Sale is the amount of money earned by an entity by selling goods or providing services, cost of…
Q: Required: Use the information in the adjusted trial balance to prepare (a) the income statement for…
A: Financial statements are those statements which are prepared at the end of the period. It includes…
Q: How about his regular hours in terms of dollars then? Is regular also gross pay per period?
A: Given in the question: It has been given in the question that Chinson earns a 48,000 a year with…
Q: 35% 39.6% Standard deduction Exemption (per person) up to $418,400 above $418,400 $6350 $4050 up to…
A: Here discuss about the details of tax bracket and its calculation which are related with this for…
Q: Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the…
A: It is method of Valuation of Inventory. Under LIFO Method the goods which came last will be sold…
Q: Required a Compute the net present value of each opportunity. Which should Mr. Keams adopt based on…
A: Net Present Value (NPV) is the difference between the Present Value of Cash Inflows and Present…
Q: Operating profit earned by M/s Arora & Sachdeva in 2016-17 was $ 17,00,000. Its non-operating…
A: Introduction: Net profit is a company's profit after deducting operating costs, taxes, interest, and…
Q: Asap Operational auditing has grown in importance over the last few decades a . Define operational…
A: Auditing - The term audit comes from the Latin word "audire," which means "to hear." Account…
Q: 1. How much is the Interest Revenue to be recognized in 2021?
A: Given in the question: Total Initial Franchise Fee ₱20,00,000 Break-Down Cash…
Why is it necessary for accountants to assume that business entity will remain a going concern?
Step by step
Solved in 2 steps
- What is the accounting equation? List two examples of business transactions, and explain how the accounting equation would be impacted by these transactions.That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A. separate entity concept B. monetary measurement concept C. going concern assumption D. time period assumptionWhat is business ethics? Is it possible to teach ethical behavior in a management accounting course?
- External users of accounting information would include ________________. employees managers investors supervisorsList the three basic questions that must be answered when analyzing the effects of a business transaction on the accounting equation.Define each of these users of accounting information as an internal user of external user Management Employees Investors Creditors Customers Tax authorities
- When corporations issue stock in exchange for professional services, what account(s) should be debited and what account(s) should be credited?Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principleDiscuss what information would be most useful for these users of accounting information: Management Employees Investors Creditors Customers Tax authorities
