QUESTION 19 When a company decreases the estimated useful life of a PP&E asset O a. It is admitting it made a mistake and needs to correct the financial statements affected by this mistake. O b. It will recognize less total depreciation expense than it originally planned. O c. It must revise depreciation expense for future periods only. O d. It must disclose the change in estimate but depreciation expense will not change.
Q: Sweet Tooth Candy Company has computed the net present value for capital expenditure at two location...
A: The question is based on the concept of Financial Management.
Q: In the course of your examination of the accounts of Toledo, Inc. you obtain the following informati...
A: Unamortized bond premium is the difference between the bond value (less of interest) and the carryin...
Q: In 2020, Clifford purchase a condominium unit from his friend, Ronald (condo unit owner). for P3,000...
A: Condominium unit is the residential unit owned by individual in a building or complex. Given that, P...
Q: The expected total capital budget for the year is? 2. Assuming the company has 200,000 ordinary sha...
A: Dividend per share is the dividend amount which has been paid by the company to the one per share wh...
Q: please help me answeer the following given Debt analysis Springfield Bank is evaluating Creek Ente...
A: Ratio Analysis: Ratio analysis is the analysis where data in a company's financial statements is co...
Q: Which of the following entries would be the appropriate entry for writing off an uncollectible accou...
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account...
Q: 23) Under the allowance method, the entry to record the write-off of a specific account would A Decr...
A: In case of allowance method, in order to record the bad debts, the bad debts account will be debited...
Q: Which of the following statements is incorrect? O If the current ratio is too high the company may n...
A:
Q: Jerome's Fashion Dezigns sells a variety of items of clothing including footwear for men and uses a ...
A: A perpetual inventory system is software that estimates your inventory on a constant basis based on ...
Q: A motor vehicle which cost $12,000 was bought on credit frrom Trucks Ltd on 1 January 20X9. Financia...
A: Depreciation- Depreciation is thus the diminish in the price of assets and the process used to restr...
Q: Available-For-Sale Investments With Known Market Value Porter Inc. is a Canadian public company w...
A:
Q: According to its original plan, Finch Consulting Services Company plans to charge its customers for ...
A: Revenue is Flexible budget hours × budget hours × service charge - $128 per hour Variable costs is ...
Q: old son paid during the same 12-month period totaled $1,800. For the current year, O had net income ...
A: As per the provisions of the medical expense can be claimed if it is paid by the tax payer or his sp...
Q: QUESTION 12 Annual data for ABC Corporation appear below, in millions of US dollars: 2016 2017 2018 ...
A: Beginning inventory of 2017 = 9.6 Ending inventory of 2017 = 10.20 Cost of goods sold of 2017 = 50...
Q: Exercise 8-16 Disposal of assets LO P2 Diaz Company owns a machine that cost $126,800 and has accumu...
A: >When a long term asset is disposed off or sold, a gain or loss is recognized in the books of acc...
Q: Which of the following is a direct cost with respect to producing a motor car? a. Salary of producti...
A: The question requires us to find Direct cost with respect to producing a motor car.
Q: Ayayai Ltd. had the following 2020 income statement data: Sales $205,600 Cost of goods sold 119,400 ...
A: The Cash Flow statement shows the flows of cash and cash equivalent during the period under report. ...
Q: following three theories of corporate social responsibility: (i) shareholder value theory, (ii) stak...
A: These are three management theories 1) Shareholders value theory: shareholders value theory says tha...
Q: what is the dividend yield?
A: Dividend yield is the rate of return which is measured as per the dividend paid by the company durin...
Q: On December 31, 2021, Max Company committed to a plan to discontinue the operations of Underwear Div...
A: Parts of a company's operations that have been divested or shut down are referred to as discontinued...
Q: A tractor for over-the-road hauling is purchased for $105,000.00. It is expected to be of use to the...
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: The selling price of the Appliances Company's units is P 80,000 each. The buyers are provided with a...
A: The warranty Expense is the expense estimated based on past year experience depending on sales incur...
Q: QUESTION 18 On Jan. 1, 2012, ABC Corporation placed into service a lift truck that had a capitalized...
A: Solution.. Cost = $22,500 Accumulated depreciation on the date of sale = $10,625 Sales value ...
Q: Required: 1. Prepare the projected income statement of Gospel Company. 2. How much is the net income...
A: Income statement refers to a statement which shows the revenue and expense of the company of a parti...
Q: Consider Southeast Home Care, which is a for-profit business. In 2020, its net income was $1,500,000...
A: Statement of changes in equity shows the change in the balance of equity during the year. It shows t...
Q: find out value of account receivable from following Cash $ 48,000 account payable $ 33,000 office eq...
A: Introduction:- The following basic fundamental equation is used for preparation of balance sheet as ...
Q: The statement of financial position of Trend, Inc. is presented below. These are the only accounts ...
A: As per Bartley policy, only first 3 interlinked questions are answered. (a)Accounts Receivables =Tot...
Q: QUESTION 16 On, Jan. 1, 2018, ABC purchases a van for making deliveries to customers. Cash payments ...
A: Introduction:- A cost is the value of money spent on creating something or delivering a service that...
Q: urnal entries for Damle d Do not Indent manuall
A: Damien Jurado purchased an insurance policy for 2 years on 1st July 2022. Since the policy has been ...
Q: Directions: Complete the table below. The first item has been done for Decreased by Classification N...
A: All the assets, expenses, and losses have a nominal debit balance. All the liabilities, revenue, and...
Q: Given below is information about beginning inventory and purchases for the current year for Peterson...
A: Introduction:- Gross income is the sum of all wages, salaries, profits, interest payments, rents, an...
Q: Do the balance sheet, income statement, and statementof cash flows contain all the information you m...
A: A balance sheet is a financial statement that displays a corporation's assets, liabilities, and shar...
Q: Sunland Company purchased supplies costing $7030 and debited Supplies for the full amount. At the en...
A: Supplied used (Supplies expense) = Beginning supplies balance + Supplies purchased - Physical count ...
Q: 2022 Sales revenue $500,000 Cost of goods sold Gross profit Operating expenses 400,000 ? Wages expen...
A: Formula: Gross profit = sales revenue - cost of goods sold
Q: R. Pedro Penduko resigned in 2019 after 20 years of service. He had the following income during the ...
A: Gross Income While calculating the gross income there are number of items which are exemption from t...
Q: The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively....
A: Please see Step 2 for the solution as required.
Q: JSC Company reported accounts receivable P8,000,000 on December 31, 2020 and allowance for doubtful ...
A: Estimated uncollectible accounts = Accounts receivable x Uncollectible accounts % Doubtful accounts ...
Q: On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the ...
A: While preparing the consolidated balance sheet, the total assets of the acquired and acquirer compan...
Q: The F Company uses the allowance method is used to account for uncollectible receivables. It had the...
A: Receivables, loans, and other obligations that are likely to be paid are referred to as uncollectibl...
Q: Beginning inventory, 100 units @P1.50; purchases: Jan 24 – 300 units @P1.56 Jun 11...
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: Exerclse 8-16 Disposal of assets LO P2 Diaz Company owns a machine that cost $126.800 and has accumu...
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: A company's financial statements states that amounts are reported in thousands of dollars. Its incom...
A: Introduction: Financial statements are helpful for the following reasons: determining a company's ab...
Q: Micro-business entities can use which basis of accounting
A: Micro business entities have the option to us any of the following basis of accounting in the prepar...
Q: Consider Southeast Home Care, which is a for-profit business. In 2020, its net income was $1,500,000...
A: RE termed as Retained Earnings refers to the balance sheet account presented under section of equity...
Q: TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried...
A: Direct labor efficiency variance = {6,000 - (22,000 × .25)} x $6.20 = 500 hours × $6.20 = $3,100 (U...
Q: Depletion Prepare the following entries using a general journal: 1. A coal mine was acquired at a co...
A: journal entry for deletion expenses are as follows
Q: A tractor for over-the-road hauling is purchased for $105,000.00. It is expected to be of use to the...
A: Depreciation Expense - Assets is depreciated due to usage, wear and tear and effluxion of time or ob...
Q: A company sells three different products.The following inventory information is available on Decembe...
A: Inventory - Inventory is the value of assets held by the company not sold during the year. It is the...
Q: The balance in the supplies account on June 1 was $5230, supplies purchased during June were $3480, ...
A: Lets understand the basics. Adjusting entry is needs to pass to record correct amount of revenue and...
Q: Preparation of Ratios The financial statements for Venus Industries follow: Venus Industries Cons...
A: Ratio analysis shows the analysis of financial statements in regard to the profitability, liquidity,...
Step by step
Solved in 2 steps
- 15 Under physical capital maintenance assumption, a profit is earned only if the physical operating capability of the entity at the end of the accounting period is _____________ its physical operating capability at the start of the period, after adjusting for any amounts contributed by or distributed to owners during the period. a. Equal to b. Less than c. None of the given options d. Greater thanQuestion 33 Which one of the following items, originally recorded in the Investment in Falcon Co. account under the equity method, would not be systematically used to reduce investment income on a periodic basis? Answers: A. Depreciation expense on the excess fair value attributed to machinery B. Amortization expense of goodwill C. Depreciation expense on the excess fair value attributed to building D. Amortization expense on the excess fair value attributed to lease agreementsQ1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no longer expected to flow from an intangible asset, such asset should be derecognized the financial statements of an organization. (ii) When an intangible asset is derecognized, the carrying amount should be written off as a loss in the profit or loss statement at the date of retirement of the asset. (iii) When an intangible asset is sold, the difference between the carrying amount and consideration received is recognized in the profit or loss statement at the date of the sale. (iv) Consideration to be received in the event of sale of an intangible asset should only be cash Select one: a. (ii) and (iv) only b. (i) and (ii) only c. (i) and (iv) only d. (i), (ii) and (iii) only
- 46. Evaluate the following statements: S1. In the sum-of-the-years'-digits method, residual value is not used in the computations of depreciation expense. S2. Straight-line depreciation assumes equal usefulness in each time period, and the periodic charge is not affected by asset productivity or efficiency variations. S3. The residual value of an asset is deducted from the depreciable base when calculating double-declining-balance depreciation. a. True, False, True b. False, True, False c. False, False, True d. False, False, False e. True, True, False f. True, True, True g. False, True, TrueSaved TB 02-91 According to the principle of conservatism, ... According to the principle of conservatism, when faced with uncertainty about the value of an item, a company should use the measure that avoids: Multiple Choice understating assets and liabilities. O overstating assets and liabilities. overstating assets and understating liabilities. O understating assets and overstating liabilities.true or false 1. Some intangible assets are not required to be amortized every year. 2. Internally created intangibles are recorded at cost. 3. Internally generated intangible assets are initially recorded at fair value. 4. Amortization of limited-life intangible assets should not be impacted by expected residual values. 5. Internally generated goodwill should not be capitalized in the accounts 6. Dividends in arrears on cumulative preferred stock should be recorded as a current liability. 7. Magazine subscriptions and airline ticket sales both result in unearned revenues. 8. Discount on Notes Payable is a contra account to Notes Payable on the balance sheet. 9. All long-term debt maturing within the next year must be classified as a current liability on the balance sheetAll long-term debt maturing within the next year must be classified as a current liability on the balance sheet 10. A short-term obligation can be excluded from current liabilities if the company intends to refinance…
- For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True False7. When the residual value of plant and machinery has drastically changed, the entity should a. Change the annual depreciation for the current year and future years b. Retrospectively change the depreciation charge based on the revised residual value c. Ignore the effect of the change on annual depreciation d. Change the depreciation charge and treat it as a correction of error 8. Which of the following is among those listed under PAS 29 as indicators of hyper-inflation? a. People prefer to keep their wealth in monetary assets b. The cumulative inflation rate over five years exceeds or is100% c. The people prefer to keep their wealth in relatively stable foreign currency d. All of the statements are indicators of hyperinflation 9. An entity uses periodic inventory system and neglected to record a purchase of merchandise on account at year end. This merchandise was omitted from the year end physical…Q10 Which of the following statement is NOT correct? Select one: a. When the carrying amount of an asset is less than the recoverable amount, then an asset should have its previous impairments reversed to the value of the recoverable amount provided there is accumulated amortization to cover the difference. b. The difference between the carrying amount of an asset and the recoverable is the impairment loss if the carrying amount is greater. c. When the carrying amount of an asset is greater than the recoverable amount, then an asset should be impaired to the value of the recoverable amount d. The difference between the carrying amount of an asset and the recoverable is the impairment loss if the carrying amount is less.
- Which of the following statements is not correct? Multiple Choice The cost less the salvage value equals the depreciable base of a long-term asset. Uncollectible Accounts Expense is a contra asset account. If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account. Each adjustment for an accrued expense includes a credit to a liability account.Hw would you best define an intangible asset? A. Assets that dont impact the company's valuation B. Assets with physical traits, such as property or equipment C. Assets not recorded on the Balance Sheet, such as customer loyyalty or intellectual property D. Assets that were added to the company in the most recent annual report E. Assets that depreciate at an accelerated rateWhich of the following statements is false? A For tax purposes, companies can use the MACRS depreciation method. B When you change a depreciation estimate, such as salvage value, you need to make an adjustment to retained earnings. C If the expected future cash flow is less than the carrying amount, the asset is considered impaired. D If an impairment loss is recorded, depreciation must be recalculated since the book value changed. The answer A is wrong