Why is the profit maximization supposed not the most important goal of the company?

Q: A. B and C are partners with average capital balances during 2020 of P945,000, P477,300 and P324,700...

A: Closing capital of partners is to be calculated as follows =                                  Openin...

Q: Financial audit Q&A What is the risk that arises because the auditor is unable to find misstatements...

A:

Q: Financial audit Q&A In the process of obtaining audit evidence, the strongest audit evidence is inqu...

A: audit evidence shows the information data that is collected by auditor to make their conclusion on t...

Q: GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year ...

A: Formula Used for calculation: Cost of goods sold % = ( Cost of goods sold value / Sales value ) x 10...

Q: Skittles Pet store provides a dog wash service. Its highest and lowest bills of $3800 and $2400 were...

A: The answer for the multiple choice question and relevant working are presented hereunder : 500 dogs ...

Q: Review the treasurer's analysis, identifying any questionable aspects and briefly comment on the app...

A: A treasurer is a person who manages and administers the financial assets and liabilities of a compan...

Q: Under Pick Co.’s job order costing system-manufacturing overhead is applied to work in process using...

A: Manufacturing overhead incurred shall be considered.

Q: The standard cost sheet for Chambers Company, which manufactures one product, follows:             ...

A:   Variances will be considered favorable if actual performance is better or meets standards and unfa...

Q: The TOYO Manufacturing Company has the following financial information: ·         Manufacturing ove...

A: Total cost of manufacturing = costs of direct materials used + direct labor costs + manufacturing ov...

Q: Jacobe Company uses the weighted-average method in its process costing system. The Assembly Departme...

A: Equivalent units is defined as how much work has been done on a certain number of physical units. To...

Q: a partner in the new partnership, Isabel contributed Furniture and Fixtures that cost P900,000 with ...

A:

Q: The accountant at Fidel Trading has received the November 2010 bank statement. She immediately inves...

A: Bank reconciliation is the statement prepared to evaluate the cash position and the difference in th...

Q: Mary is considering opening a hobby and craft store. Mary plans to operate the business for six year...

A: Annual Net Savings=Annual cash inflow from sales-Annual cash outflow for operating costs

Q: PROBLEM 7. Mcoy Company has, for the coming year, budgeted sales of P3,200,000 with contribution mar...

A: Contribution Margin: "Contribution margin tells you the aggregate amount of income available after v...

Q: Comprehensive Oakwood Inc. is a public enterprise whose shares are traded in the over-the-counter ma...

A: Statement of shareholder’s equity as follows:   It is a financial statement that states the value of...

Q: Under the partnership agreement, X is to receive bonus of 20% of net income after bonus and the rema...

A: Lets understand the basics. Partnership is an agreement between two or more person who works togethe...

Q: Pedro paid pepito 500k from the 1.2m adjusted total capital of the partnership if pepitos capital ba...

A: If total Adjusted Capital = 1,200,000 And Pepitos Capital Balance is 450,000 And Pedro paid = 500,00...

Q: Moustapha transfers a capital asset with a $60,000 adjusted basis to X Corp in a Section 351 transac...

A: Total basis refers to the amount which is paid in securing as well as holding the particular investm...

Q: Pharoah Corporation issued 117,000 shares of $19 par value, cumulative, 7% preferred stock on Januar...

A: The preference shareholders get the dividend before any dividend paid to other shareholders. 

Q: Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax ...

A: Formula: Sales revenue = Sales units x Sales price per unit

Q: On May 10, Bramble Corp. issues 1,200 shares of $7 par value common stock for cash at $12 per share....

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: Pharoah Corporation issued 117,000 shares of $19 par value, cumulative, 7% preferred stock on Januar...

A: Lets understand the basics. When issue of preferred stock is made the journal entry is required to m...

Q: January 8 Sold merchandise on account to C. Cline, $1,000, plus sales tax of $50. Sale No. 1474. 14 ...

A: Date Account Titles  Debit   Credit  January'8 C.Cline  $   1,050     Sales    $   1,000   Sal...

Q: Please see the pictures below. I am completely stumped on this problem and really need help with it....

A: Inventory refers to the stock that the company held for the resale purpose or is not sold by the com...

Q: Trial Balance to be correced Account Titles Debit Credit Cash in Bank 25,000 Accounts Receivable 20,...

A: In trial balance Assets, Expenses and Drawings are debit balance account while Capital, Liabilities ...

Q: An animal shelter plans to sell T-shirts bearing their logo at an upcoming crafts fair. They find a ...

A: Cost of inventory = Cost of purchase + Cost of logo printing + Cost of freight in

Q: What terms that must be included in the document prepared by the client

A: Engagement letter is the letter in which auditor defined the audit scope, its terms and other relate...

Q: The direct materials are added at the start of the production process while conversion costs are add...

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

Q: PROBLEM 6. After its cost structure (variable costs P15 per unit and monthly fixed costs of P125,000...

A:

Q: ontract is a derivative instrument hedging an identifiable foreign currency purchase commitment for ...

A: 1. Journal entry to record forward contract to purchase Euros on October 2, 2016: Date Accounts,...

Q: Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,500, ...

A: Net Sales = Sales - Sales discount Sales discount = 2% Net sales = 100 - 2 = 98% Inventory purchase ...

Q: J'S vehicle struck a low hanging tree limb causing $470 damage to the windshield. If J's Personal Au...

A: Insurance refers to a contract in the form of a policy between the insurance holders and insurance c...

Q: X, Y, Z share profits and losses in the ratio of 20%, 30%, 50%, respectively. During the year, their...

A: Ending Capital Balance=Beginning Capital Balance+Share in Profit-Drawings

Q: Accumulated depreciation-Equipment of JAD Company at December 31, 2019 and December 31, 2020 were P1...

A: Depreciation expense for the year = Ending Accumulated depreciation + Accumulated depreciation on as...

Q: Financial audit Q&A What is the inspection activities to ensure the shipping or Destination Point in...

A:

Q: The total cost assigned to job 777C is P24,000 which includes direct materials cost of P6,000. The f...

A: Total cost = P24,000   Conversion cost applied = Total cost - Direct material cost  = P24,000 - P6,0...

Q: Manufacturing overhead        30,800 ·         Increase in direct materials     13, 000 ·         In...

A: Total cost of manufacturing = costs of direct materials used + direct labor costs + manufacturing ov...

Q: 4. Income taxes: New Haven has an overall income tax rate of 30%. Chapter 12 Capital Budge 5. Treasu...

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)

Q: Risk can be defined as uncertainty concerning the actual return that an investment will g

A: In accounting, "uncertainty" refers to the difficulty of anticipating outcomes due to a lack of or i...

Q: Work in Process, January 1: Materials Conversion Cost Added this month: Materials 25,000 30,000 240,...

A: Units in Completed and Transferred The cost of the Completed and Transferred consist of: 1. Transfer...

Q: The standard quantity allowed for the units produced was 4,500 pounds, the standard price was P2.50 ...

A: The variance is the difference between the actual data and standard output of the production. 

Q: What are the benefits of Activity-based costing: a.All of the answers are correct b.It assists in ...

A: Activity-based costing is a cost accounting method which groups each operation into an activity and ...

Q: QUESTION 7 On April 1, 2020, Balboa Company invests $50,000 in a 6-month CD that pays an annual inte...

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized i...

Q: daho Corporation manufactures liquid chemicals A and B from a joint process. Joint costs are allocat...

A: Solution: Total joint costs = 4,560 Total sale value of product A at split off point = 500*10 = 5,00...

Q: On April 1, 2021, A1, A2, A3 formed a partnership by combining their separate business proprietorshi...

A: The assets contributed by partners are recorded at the fair market value of particular assets. Any l...

Q: Exercise 3.18 Frida's Tax Practice has two departments, tax and audit. The tax department has two pr...

A: Cost accounting is one of the important form of accounting, under this all type of costs and expense...

Q: The A Company whose ending capital is P89,000 will be joined by Mr. B to form a partnership. Mr. B i...

A: The partnership comes into existence when two or more persons agree to do the business and further s...

Q: What is the audit assertion underlying the vouching procedure?

A: Assertions are the management representation. Assertions are the claims which management makes in th...

Q: Adrian and Nino formed a Partnership . Upon formation Adrian contributed 200,000 and Nino contribute...

A: In the case of Partnership firms, net profits are divided among the partners equally unless their pr...

Q: The price of a commodity increased by 5% from 2014 to 2015, 8% irom 2015 to 2016 and 77% from 2016 t...

A: For the purpose of the average increase in the price of a commodity over a period of time, per year ...

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.