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2 years ago

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Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qu

alitative characteristics.)
a. Fair value changes are not recognized in the accounting records.
b. Accounts receivable are recorded for sales on account rather than waiting until cash is received.
c. Financial information is presented so that investors will not be misled.
d. Intangible assets are capitalized and amortized over periods benefited.
e. Brokerage companies use fair value for purposes of valuing financial securities.
f. Each enterprise is kept as a unit distinct from its owner or owners.
g. All significant post-statement of financial position events are reported.
h. Revenue is recorded at point of sale.
i. All important aspects of bond indentures are presented in financial statements.
j. Rationale for accrual accounting.
k. The use of consolidated statements is justified.

1 answer:

AysviL [449]2 years ago

6 0

Answer:

Please refer below the assumption, principle, or constraint that most appropriately justifies these procedures and practices for each.

Explanation:

A Fair value changes are not recognized in the accounting records.

Measurement Principle (historical cost)

B Accounts receivable are recorded for sales on account rather than waiting until cash is received.

Accrual basis assumption

C Financial information is presented so that investors will not be misled

Materiality Full Disclosure Principle

D Intangible assets are capitalized and amortized over periods benefited

Measurement Principle (Historical Cost)

E Brokerage companies use fair value for purposes of valuing financial securities.

Measurement Principle (Fair value)

F Each enterprise is kept as a unit distinct from its owner or owners.

Economic Entity Assumption Periodicity Assumption

G All significant post-statement of financial position events are reported

Full Disclosure Principle

H Revenue is recorded at point of sale

Revenue Recognition Principle

I All important aspects of bond indentures are presented in financial statements

Materiality Full Disclosure Principle

J Rationale for accrual accounting

Revenue and Expense Recognition Principle

K The use of consolidated statements is justified

Economic Entity Assumption

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The Williams Supply Company sells for $50 one product that it purchases for $20. Budgeted sales in total dollars for the year ar

frutty [35]

Answer:

The Williams Supply Company

a. Estimated Cash Collections for July

58% sales month (60% -2%) $171,100 ($295,000 * 58%) July

25% ffg month 60,000 ($240,000 * 25%) June

12% second month 21,000 ($175,000 * 12%) May

Estimated cash collections = $252,100

b. Estimated July Cash Payments for Purchases:

July

Cost of purchases $122,000

50% purchase month 61,000

50% ffg month 47,200

Total payment for purchases $108,200

c. July Selling and Administrative Expenses:

Monthly fixed expenses $72,000

Variable expenses ($5 * 5,900) 29,500

Total selling and admin expenses $101,500

d. Cash Receipts Over Disbursements for July:

Beginning cash balance $125,000

Total cash receipts 252,100

Total cash available $377,100

Cash Disbursements:

Purchases $108,200

Selling and Admin. 101,500

Total cash disbursements $209,700

Cash balance $167,400

Explanation:

a) Data and Calculations:

Selling price of product = $50 per unit

Purchase cost of product = $20 per unit

Total budgeted sales for the year = $3,000,000

Total budgeted sales for the year (units) = 60,000 units

Month Sales Revenue Unit Sales

May $175,000 3,500 ($175,000/$50)

June 240,000 4,800 ($240,000/$50)

July 295,000 5,900 ($295,000/$50)

August 320,000 6,400 ($320,000/$50)

July 1 Account Balances:

Cash = $125,000

Merchandise inventory = $47,200

Accounts receivable (sales) = $84,530

Accounts payable (purchases) = $47,200

Payment of Purchases:

50% purchase month

50% ffg month

Cash collections from sales:

58% sales month (60% -2%)

25% ffg month

12% second month

Ending inventory = 40% of the budgeted sales in units in the next month

Total budgeted selling and administrative expenses (excluding bad debts) = $1,200,000

Fixed expense = $864,000 ($1,200,000 * 3/4) - $36,000

Monthly fixed expenses = $72,000 ($864,000/12)

Variable selling expenses = $300,000 ($1,200,000 - $900,000)

Variable selling expenses per unit = $5 ($300,000/60,000)

Purchases Budget

June July

Ending inventory 2,360 2,560

Sales 4,800 5,900

Units available for sale 7,160 8,460

Beginning inventory 1,920 2,360

Purchases 5,240 6,100

Cost of purchases $104,800 $122,000 (6,100 * $20)

4 0

2 years ago

Mountaintop golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $50,000,00

marishachu [46]

Answer:

Mointaintop should charge 84.18 dollars per round of golf to achieve his desired return.

Explanation:

return:

50,000,000 x 12% = 6,000,000

fixed cost: 24,000,000

Variable cost: 16 per golfer

golfers expected 440,000

It should price to pay up the variable cost, fixed cost and achieve the 12% return:

$(S_{units}-V_{units})Q -Fixed = Return$

$(S-16)440,000 -24,000,000 = 6,000,000$

$440,000S -7,040,000 = 6,000,000 + 24,000,000$

$440,000S = 37,040,000$

$S = 37,040,000 \div 440,000$

S = 84,18181818181818

It should charge per round 84.18 dollars

4 0

2 years ago

The participants in a television quiz show are picked from a large pool of applicants with approximately equal numbers of men an

IgorLugansk [536]

Answer:

a) $P(X \leq 2)= P(X=0)+P(X=1)+P(X=2)$

$P(X=0)=(11C0)(0.5)^0 (1-0.5)^{11-0}=0.00049$

$P(X=1)=(11C0)(0.5)^1 (1-0.5)^{11-1}=0.0054$

$P(X=2)=(11C0)(0.5)^2 (1-0.5)^{11-2}=0.027$

And adding we got:

$P(X \leq 2)= 0.033$

b) $P(X \geq 2)= 1-P(X$

And replacing we got:

$P(X \geq 2)= =1-[0.00049 +0.0054] = 0.994$

c) $P(X \leq 1)= 1-P(X$

And replacing we got:

$P(X \leq 1)=0.00049 +0.0054= 0.0059$

Explanation:

Previous concepts

The binomial distribution is a "DISCRETE probability distribution that summarizes the probability that a value will take one of two independent values under a given set of parameters. The assumptions for the binomial distribution are that there is only one outcome for each trial, each trial has the same probability of success, and each trial is mutually exclusive, or independent of each other".

Solution to the problem

Let X the random variable of interest "number of women", on this case we now that:

$X \sim Binom(n=11, p=0.5)$

The probability mass function for the Binomial distribution is given as:

$P(X)=(nCx)(p)^x (1-p)^{n-x}$

Where (nCx) means combinatory and it's given by this formula:

$nCx=\frac{n!}{(n-x)! x!}$

Part a

For this case we want to find this probability:

$P(X \leq 2)= P(X=0)+P(X=1)+P(X=2)$

$P(X=0)=(11C0)(0.5)^0 (1-0.5)^{11-0}=0.00049$

$P(X=1)=(11C0)(0.5)^1 (1-0.5)^{11-1}=0.0054$

$P(X=2)=(11C0)(0.5)^2 (1-0.5)^{11-2}=0.027$

And adding we got:

$P(X \leq 2)= 0.033$

Part b

For this case we want this probability:

$P(X \geq 2)$

And we can use the complement rule and we got:

$P(X \geq 2)= 1-P(X$

And replacing we got:

$P(X \geq 2)= =1-[0.00049 +0.0054] = 0.994$

Part c

For this case we want this probability:

$P(X \leq 1)$

And we can use the complement rule and we got:

$P(X \leq 1)= 1-P(X$

And replacing we got:

$P(X \leq 1)=0.00049 +0.0054= 0.0059$

6 0

1 year ago

Trans Union Corporation issued 6,800 shares for $50 per share in the current year, and it issued 11,800 shares for $37 per share

oee [108]

Answer and Explanation:

The impact of the transactions on the financial statement are as follows

1. In case of Sold 5,000 Shares:

The total Assets Increased by $250,000 i.e (5,000 × $25) as it increased the cash balance

Total Liabilities = No Change

Total Stockholders Equity = Increased by $250,000 as it increased the overall equity

Net Income = No Change.

2. In case of sale of 10,000 shares

The total Assets Increased by $370,000 i.e (10,000 × $37) as it increased the cash balance

Total Liabilities = No Change

Total Stockholders Equity = Increased by $370,000 as it increased the overall equity

Net Income = No Change.

3. In case of Purchased 20,000 of Treasury Stock

The Total Assets Decreased by $900,000 i.e (20,000 × $45) as it reduced the cash balance

Total Liabilities = No Change

Total Stockholders Equity Decreased by $900,000 as it decreased the overall equity

Net Income = No Change.

Note:

The number of shares given i.e 6,800, 11,800 and 21,800 are incorrect use the 5,000 shares, 10,000 shares and 20,000 shares and we did the computation accordingly

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