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>
Answer:
$8,000
Explanation:
Given the following:
Interest rate on notes receivable = 8%
Original principal balance = $150,000
Amount due by July 1 = $50,000
Therefore, in the June 30, 20X4 balance sheet, the original principal balance that has been outstanding will be :
$150,000 - $50000 = $100,000
Therefore, only $100,000 has been outstanding and is due for calculation in the interest on accounts receivable on June 30.
Interest rate * principal balance due at the date
8% * $100,000
0.08 * $100,000
= $8,000
Answer:
PART A
The saying means that it should remove the economic incentives when it has reached its peak in order to prevent it from impacting negatively on the economy.
PART B
(1) It can lead to Inflation.
(2) it can lead to reduced Productivity within the economy.
Explanation:Central banks all over the world are known to put incentives and Stimulus factors in place in order to help improve, resuscitate or sustain the economy in terms of crisis, but the impacts of the Incentives or Stimulus programs of the central banks can lead to certain negative consequences if not effectively monitored or removed when necessary.
SOME OF THE NEGATIVE CONSEQUENCES WHICH CAN ARISE IF THE INCENTIVES OR STIMULUS PROGRAMS USED TO SUSTAIN THE ECONOMY ARE NIT REMOVED EXAMPLES INCLUDE IT CAN LEAD TO INFLATION,IT CAN LEAD TO REDUCTION IN THE OVERALL PRODUCTIVITY WITHIN THE ECONOMY ETC.
Answer:
correct option is b. $ 30
Explanation:
given data
overhead cost = $15,000
direct labor hours = 5,000
required direct labors hours = 10
solution
we get here Fixed Overhead Rate that is
Fixed Overhead Rate = estimated overhead cost ÷ direct labor hours ........1
Fixed Overhead Rate = 
Fixed Overhead Rate = $3 per labor hour
and
Job overhead applied express as
overhead = Fixed Overhead Rate × required direct labors hours ..........2
overhead = $3 × 10
overhead = $30
so correct option is b. $ 30
