answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miv72 [106K]
2 years ago
7

The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc

ounting information should always be provided. True or false?
Business
1 answer:
Alekssandra [29.7K]2 years ago
3 0

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

You might be interested in
A market research study of soft drink consumption and distribution in Hungary commissioned by an American company indicated that
Nutka1998 [239]

Answer:

comparability of data

Explanation:

Comparability of information is one attribute used only to characterize the consistency of descriptive statistics. For two factors the principle of comparability of data is especially critical to a Triad.

Secondly, the Constellation demonstrates shared data sets. Through nature, the shared data sets include information from different analytical techniques. The degree of comparability among two separate sequencing / technical methods affects the way in which sets of data can be jointly compiled, analyzed and used to help strategic thinking.

7 0
2 years ago
Vince Lupino works for Best Supplies Company, which pays its employees time and a half for all hours worked in excess of 40 hour
ZanzabumX [31]

Answer and Explanation:

As per the given question the solution of given points is given here:-

a. Regular pay for the week = Rate of pay × Hours per week

= $12 × 40 hours

= $480.00

b. Overtime pay for the week = Rate of pay × 8 hours × 1.5 times

= $12 × 8 hours × 1.5 times

= $144.00

c. Total gross wages = (Social security withheld + Medicare tax withheld + Federal income tax withheld + Net pay)

= $38.69 + $9.05 + $54 + $522.6

= $624.00

d. Social security withheld = Total gross wages × Social security tax

= $624 × 6.2%

= $38.69

e. Medicare tax withheld = Total gross wage × Medicare tax rate

= $624 × 1.45%

= $9.05

f. Total withholding = Social security withheld + Medicare tax withheld + Federal income tax withheld

= $38.69 + $9.05 + $54

= $101.74

g. Net pay = Total gross wages - Total withholding

= $624.00 - $101.74

= $522.26

2. The Journal entry is here below:-

Wage Expense Dr, 624  

      To Social security taxes payable $38.69

      To Medicare Tax Payable $9.05

      To Federal Income Tax Payable $54

      To Wages Payable $522.26

(Being the payroll is recorded)

4 0
2 years ago
A cereal company's cost, in thousands of dollars, is represented by the function C ( x ) = 2 x + 4500 and its revenue, in thousa
maxonik [38]

Answer:

31,500

Explanation:

Cost function, C (x) = 2 x + 4500

Revenue function, R (x) = 5 x

Profit = Total revenue - Total cost

         = R(x) - C(x)

         = 5 x - [2 x + 4500]

         = 3 x - 4,500

If company sells 12,000 boxes, then profit will be:

=  3 x - 4,500

= 3(12,000) - 4,500

= 36,000 - 4,500

= 31,500

Therefore, 31,500 is the profit earn by the company by selling 12,000 boxes of cereal.

5 0
2 years ago
The Nantell Corporation just purchased an expensive piece of equipment. Assume that the firm planned to depreciate the equipment
gtnhenbr [62]

Answer:

D

Explanation:

Nantell's operating income (EBIT) will increase., because now the company will record lower depreciation expense in the income statement due to increase in the life from 5 to 7 taken for the depreciation purposes. So decline in depreciation will result in higher EBIT.

a. is wrong as lower depreciation means higher net income.

b. is wrong as tax liability will not get impacted as tax will follows old method of depreciation.

c. is incorrect as depreciation is non cash expense thus does not impact cash position and tax has already be on the earlier method.

e. is incorrect as increase in EBIT will result in higher taxable income.

hence option D is the only correct option

4 0
2 years ago
While viewing businesses in terms of customer needs can suggest additional growth opportunities, a ________ definition tends to
Vladimir [108]

Answer:

B) target market

Explanation:

Target market -

It is the group of customers , who are specifically targeted by the company to sell the goods and services , is known as target market .

The company usually directs its attention towards these people , while producing the goods and services .

The target market depends on the income , lifestyle and location of the consumer .

Hence , from the question , the correct term for the given information is target market .

6 0
2 years ago
Other questions:
  • Which professional would use decimals the most often?
    6·2 answers
  • Lily has suffered severe injuries from a car accident. She would like to sue for compensation, but does not have enough funds on
    9·1 answer
  • Suppose 30% of a club are above 25 years old (M), 50% are between 21 and 25 (W) and 20% are below 21 (L). If all are exposed to
    7·1 answer
  • Bill's product manager is under pressure to increase market share, but is uncertain about how to make the product more competiti
    13·1 answer
  • ___ is the process of examining, documenting, and assessing the security posture of an organization’s information technology and
    6·1 answer
  • Marconi Co. has the following information available for the current year: Net Sales $ 762,000 Bad Debt Expense 48,000 Accounts R
    14·1 answer
  • Southern pine lumber is visually inspected and placed into categories like "Select Structural," "No. 1," and "No. 2." These cate
    13·1 answer
  • To speed the process of surveying, surveyors use brass metal plates to record important information. The benchmarks, as they are
    12·1 answer
  • Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter home" in Bellflower. This means t
    14·1 answer
  • Read the following scenario and answer the question in 5 sentences at least.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!