Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Listed below are the current Accounting Assumptions and Principles                               Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle           Going Concern Assumption   Revenue Recognition Principle   Full Disclosure Principle           Time Period Assumption   Matching Principle                                   Required:                   For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable.                       d. Moss Corporation closes the books each month and prepares monthly financial statements.               Violation: (Yes/No)         Applicable Assumption/Principle:                     e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US                 Violation: (Yes/No)         Applicable…
Listed below are the current Accounting Assumptions and Principles                               Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle           Going Concern Assumption   Revenue Recognition Principle   Full Disclosure Principle           Time Period Assumption   Matching Principle                                   Required:                   For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable.                   d. Moss Corporation closes the books each month and prepares monthly financial statements.                 Violation: (Yes/No)             Applicable Assumption/Principle:                             e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US                 Violation: (Yes/No)…
Joseph Berio is a loan officer with the First Bank of Tennessee. Red Brick, Inc., a major producer of masonry products, has applied for a short-term loan. Red Brick supplies building material throughout the southern states, with brick plants located in Tennessee, Alabama, Georgia, and Indiana.The firm’s income statement and balance sheet are given below. The third table presents both a ratio analysis of Red Brick’s previous year’s financial statements and the industry averages of the ratios.     Red Brick Income Statement (for the period ending December 12/31/20X1) Sales $ 151,000,000 Cost of goods sold   134,000,000 Administrative expenses   25,000,000 Operating income $ -8,000,000 Interest expense   13,000,000 Taxes   400,000 Net income $ -21,400,000       Red Brick Balance Sheet as of 12/31/20X2 Assets   Liabilities and Stockholders’ Equity Cash $ 600,000   Accounts payable $ 33,000,000 Accounts receivable   39,000,000 * Notes payable   8,000,000…
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