Answer:
1. Historical cost VIOLATION
2. Disclosure principle VIOLATION
3. Matching VIOLATION
4. Historical cost VIOLATION
5. Matching VIOLATION
6. Matching principle VIOLATION
Explanation:
1 &4. Note here that standard accounting procedures mandates that transactions should be recorded precisely in their historical context with no such adjustments.
2. This is a disclosure violation probably done by the company to reduce taxes on its assets which is prohibited by accounting law.
3 &5 & 6. Both transactions represents a matching violation in which transactions are mismatched or adjusted deliberately leading to inaccurate financial account status.
A writer should establish common ground before the bottom line statement <span>when the reader may disagree with the bottom-line statement.</span>
Answer: $11,200
Explanation:
Using the accounting equation:
(Total Assets) = (Total Liabilities) + (Total Capital)
So,
(Total Liabilities) = (Total Assets) - (Total Capital) (1)
Based on equation (1), in order to compute for the total liability, we need to compute the total assets and total capital.
At the end of the first year, the following are the assets Shapiro's consulting services (together with the amount):
Cash: $16,000
Office Supplies: $3,200
Equipment: $24,000
Accounts Receivable: $8,000
TOTAL ASSETS $51,200
Note that the total assets is obtained by adding the amount (or value) of the all the assets listed above.
Since the net income is an increase (or decrease if it's a net loss) of capital, we classify net income as capital. In particular, the net income of Shairo's at the end of first year adds to the capital at the start of first year.
Moreover, the withdrawal of money by the owner also decreases the capital.
Thus, the total capital at the end of first year is calculated as follows:
Capital (start of the year): $15,000
Net Income (end of year): $27,000
Withdrawal Amount: ($2,000)
TOTAL CAPITAL: $40,000
Note: ($2,000) means -$2,000. This notation is used in accounting.
Hence using equation (1), the total liabilities at the end of first year is given by
(Total Liabilities) = (Total Assets) - (Total Capital)
= $51,200 - $40,000
Total Liabilities = $11,200
Answer:
The correct answer is option d.
Explanation:
Unfavorable weather in Florida has adversely affected the production of Florida oranges. The decline in production has led to reduced supply of Florida oranges. This decrease in supply will lead to an increase in the price.
As Florida oranges and California oranges are substitutes, with the increase in the price of Florida oranges will lead to an increase in the demand for California oranges as people will prefer the cheaper substitute.
Answer: Expected return of the portfolio = 14,70%
Explanation: First we must add the amounts to calculate the total capital:
1000 + 7000 + 6000 + 6000 = $20000
The performance of a portfolio is given by the sum of each individual expected return weighted by its weight in capital.
Therefore we must calculate the weight (w) of each type of action:
W (apple) = 1000 / 20000 = 0,05
W (microsoft) = 7000 / 20000 = 0,35
W (ford) = 6000 / 20000 = 0,30
W (time warner) = 6000 / 20000 = 0,30
Expected return of the portfolio : (0,1050 . 0,05) + (0,1690 . 0,35) + (0,1575 . 0,30) + (0,1180 . 0,30) = 0,14705 = 14,70%
