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Allushta [10]
2 years ago
11

Watts Corporation made a very large arithmetical error in the preparation of its year-end point in the calculation of financial

statements by improper placement of a decimal depreciation. The error caused the net income to be reported at almost double the proper amount. Correction of the error when discovered in the next year should be treated as:____________. a. an increase in depreciation expense for the year in which the error is discovered b. a component of income for the year in which the error is discovered, but separately listed on the income statement and fully explained in a note to the financial statements. c. a change in accounting principle for the year in which the error was made. d. a prior period adjustment.
Business
1 answer:
topjm [15]2 years ago
7 0

Answer:

d. a prior period adjustment.

Explanation:

Correction of the error when discovered in the next year should be treated as a prior period adjustment. This is basically because the error was already recorded in the past financial report. Since these reports are final and cannot be changed, then the correction to this error needs to be implemented in the next year's financial report and would reflect on that year's income taxes. The process of doing this is known in accounting as a prior period adjustment

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Based on predicted production of 21,000 units, a company anticipates $357,000 of fixed costs and $309,750 of variable costs. the
Alinara [238K]
Calculate fixed cost per unit
357,000÷21,000=17 per unit
Fixed cost for 19000 units
17×19,000=323,000

Calculate variable cost per unit
309,750÷21,000=14.75
variable cost for 19000 units
14.75×19,000=280,250

So the answer is
$323,000 fixed and $280,250 variable

Hope it helps!
8 0
1 year ago
During the financial crisis of 2007-2008, the Fed engaged in lending to certain large non-bank financial firms in the private se
Delvig [45]

Answer: D. The Fed wanted to limit the inflation risk inherent among financial institutions.

Explanation: An alternative lender, or non-traditional lender, is a loan provider, often a short-term loan lender that is often not heavily regulated by state or federal agencies. ... Secured loans typically have lower interest rates than unsecured non-traditional loans because they minimize the lender's risk of loss.

6 0
2 years ago
Read 2 more answers
The first question you ask is: "gearup has several offices located around the country. what kinds of networks will gearup need t
insens350 [35]
You decided that the interviewees should answer, Borh WAN and LAN. This was the correct answer because the LAN or Local Area Network devices permit corporation computers to join with one another, with printers and copiers, and with the Internet. While WAN or Wide Area Network devices links the computer from site to site since GearUp has headquarters in several sites.
5 0
2 years ago
If Katerina were delivering an expository speech about strip mining, she would be presenting _______________________. a. an info
Mrac [35]

Answer:

a. an informative process speech

Explanation:

An expository speech is one that explains the processes involved in doing an activity. It is meant to inform the audience on processes involved in executing a task.

In this scenario strip mining is the process of removing the top layer of soil in order to gain access to a mineral. This process is opposed to digging of deep holes to access minerals. The method is commonly used in coal reserves.

An expository speech by Katerina on strip mining will be an informative process speech on this process of mining minerals

3 0
2 years ago
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received
marin [14]

Answer:

$11,560

$5666.661

Explanation:

Given the following :

Bill received from accountant = $17,000

This year's marginal tax rate = 32%

Next year's marginal tax rate = 37%

After tax return on investment = 11%

After tax cost of bill is paid in December :

Billed amount * this year's tax rate

$17,000 * ( 1 - 0.32)

= $17,000 * 0.68

= $11,560

B) After tax cost of bill was paid in January:

Billed amount * next year's tax rate * PV factor

From the present value factor table;

PV factor (1 years, 11%) = 0.9009

Hence,

$17,000 * 0.37 * 0.9009 = $5666.661

4 0
1 year ago
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