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Serhud [2]
1 year ago
13

Which of the following is an application of​ conservatism? A. reporting inventory at the lower of cost or market B. using the sa

me depreciation method from period to period C. reporting all relevant information in the financial statements D. reporting only material amounts in the financial statements
Business
1 answer:
Rudiy271 year ago
5 0

Answer:

The correct answer is letter "A": reporting inventory at the lower of cost or market.

Explanation:

Accounting Conservatism is a doctrine that involves the implementation of accounting laws with a high degree of verification. Accountants practicing conservatism must support approaches that are the most favorable in the company's income statement. If the accountant has two choices to choose from when faced with an accounting problem, the one that produces lower numbers should be chosen.

<em>When it comes to inventory valuation, accounting conservatism states that the lower historical or market cost must be selected while recording the information in the company's ledgers.</em>

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Kieran owns and operates his own bike shop. In the past week, he received two offers: one to work for a competitor for $50,000 p
icang [17]

Answer:

C. $4000

Explanation:

Given that

Total opportunity cost = salary plus interest forgone, that is 50,000 + 6% of 100,000

= 50,000 + 6000 = 56,000.

Total revenue received = 60,000

Recall that

Economic profits = Revenue - (implicit + explicit cost)

And that

Implicit cost = opportunity cost = 56,000

Explicit cost = 0 (from the question, revenue covered it)

Thus

Economic profit = 60000 - 56000

= $4000

5 0
2 years ago
Which type of layout features departments or other functional groupings in which similar activities are performed
soldi70 [24.7K]

Answer:

Process-oriented.

Explanation:

A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.

These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

Similarly, a type of layout in the manufacturing process that features departments or other functional groupings in which similar activities are performed is generally referred to as being process-oriented.

One of the main advantages of a process-oriented layout is that it mitigates or reduces difficulties associated with material flow variability for a product.

4 0
1 year ago
Use the following items to prepare a balance sheet and a cash flow statement.
Natali5045456 [20]

Answer:

Total Assets=$18,170     Networth=Assets-Liabilites=$15,855

Total Liabilties=$2,315         Cash Outflows =$3,925  

Cash Inflows=$0

Explanation:

Total Assets  

Checking Account   450.00  

Savings Account   1,890.00  

Automobile   7,800.00  

Loan payment   (80.00)

Household Possession   3,400.00  

Stereo Equipment   2,350.00  

Computer                 1,500.00  

Stock Investment         860.00  

                       18,170.00  

Total Liabilties  

Loan                  2,160.00  

Credit balance   235.00  

Loan payment   (80.00)

                    2,315.00  

Networth=$18,170-$2.315=$15,855

 Cash Outflows  

Rent   650.00  

Salaries   1,950.00  

Food   450.00  

telephone    65.00  

Insurance   230.00  

Electricity   90.00  

Lunch/Parking   180.00  

Donation              70.00  

Purchase             110.00  

Restaurant Spending   130.00  

                          3,925.00  

Cash Inflows=$0

8 0
1 year ago
Your body generally absorbs about 20 to 40 percent of the carotenoids you eat. this proportion ______ as the amount of carotenoi
Anestetic [448]
Since carotenoids are tightly-bound in proteins in our foods, our body only typically absorbs about 20% - 40% of what is consumed. However, as the amount of carotenoid eaten increases, this proportion further decreases/ drops-- to 10% or less. 

<span>Carotenoids are plant pigments which are responsible for the bright red, yellow, and orange colors of fruits and vegetables, such as carrots, pumpkins, squash, and mangoes. Certain types of carotenoids form Vitamin A, which is essential to health. Moreover, carotenoids exhibit antioxidant activity by protecting cells from free-radical damage. </span>
7 0
1 year ago
Identify how planned investment will change in each scenario. Airwings, a commercial airline manufacturer, becomes optimistic ab
Vladimir79 [104]

Answer:

Part - 1: Increase

As business is hopeful about future,it will begin limit extension to provide food customer request.

Part - 2: Decrease

Higher genuine loan fee implies acquiring cost is higher for the organizations thus that they will lessen the interest in response to that.  

Part - 3: Decrease

A lower charge implies higher benefits and firms can pass these advantages to purchasers with lower costs, to representatives with higher wages and to the administration with charge on benefit. Nonetheless, in the event that the pace of expense itself has been expanded, at that point all things considered corporate will consider higher to be as a dampener in suppositions and they may diminish venture plans.  

Part - 4: Decrease

A downturn implies there will be lesser monetary movement generally speaking and request will be lower so as the utilization. In such case, arranged speculation will be diminished.

5 0
2 years ago
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