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Alika [10]
1 year ago
14

Explain what the time period assumption means.

Business
1 answer:
Vsevolod [243]1 year ago
7 0

Time period assumption means that a corporation bases its financial reporting on the periods it chooses. It is an accounting method that allows businesses to present their earnings and balance sheets more positively than if they used one of the other methods.

The assumption time period principle is an accounting theory that states that a company's financial statements should be appropriate for a specified time period. the time period covered by the financial statement An income statement or a statement of cash flows. The balance sheet, on the other hand, is dated as of a certain date rather than a range of dates.

To learn more about assumption, click here.

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Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
marysya [2.9K]

Answer:

See below

Explanation:

1. Predetermined overhead rate

= Total fixed overhead cost for the year / Budgeted standard direct labor hour

Predetermined overhead rate = $530,400 / 68,000

Predetermined overhead rate

= $7.8 per direct labor hour

2. i. Fixed overhead budget variance

= Actual fixed overhead - Budgeted fixed overhead

= $521,000 - $530,400

= $9,400 favourable

ii Fixed overhead volume variance

= Budgeter fixed overhead - Fixed overhead applied to work in process

= $530,400 - (66,000 × $7.8)

= $530,000 - $514,800

= $15,200 unfavorable

3 0
2 years ago
Based on the corporate valuation model, the total corporate value of chen lin inc. is $900 million. its balance sheet shows $110
____ [38]

Stock price would be equal to total value of equity divided by no. of shares outstanding. The total value of equity would be calculated as follows:

Total value of equity = corporate value – notes payable – long term debt – preferred stock

= $900 million - $110 million – 90 million – 20 million

= $680 million

The price of the stock would be:

Stock price = total value of equity / no. of shares outstanding

= $680 million / 25 million

= $27.20

4 0
3 years ago
Big Dom’s Pawn Shop charges an interest rate of 27.5 percent per month on loans to its customers. Like all lenders, Big Dom must
lidiya [134]

Answer:

APR is 330% and EAR is 1745.53%

Explanation:

Given:

Monthly interest rate = 27.5%

APR or annual percentage rate = 27.5×12 = 330%

So, Big Dom should report an APR of 330% to customers.

EAR or effective annual rate = (1+\frac{APR}{m}) ^{m}-1

Here,

APR is 330% and m is 12

330÷12 = 27.5%

substituting the value in the above formula:

EAR = 1.275^{12}-1

        = 17.4553 or 1745.53%

3 0
2 years ago
Who is the home inspector's most important source of business leads? A. Engineering firms B. Architects C. Real estate agents D.
Nikitich [7]
This would be C. the Real Estate Agents. The engineering firms are only in charge of the construction of the home and the materials that are to be used for building it. The Architects, on the other hand, are responsible for the design of the home and the placement of the materials of the home. The lending institutions are focused more on providing the home inspector with money that he will need for a piece of property. So that leaves us with the Real Estate Agents. It is these people who deal with the sales of property which is why they are the source of business leads.
5 0
3 years ago
The structure of repayment for most long-term bonds consists of a. fixed coupon payments every year until maturity. b. interest
Margaret [11]

Answer:

The correct answer is letter "B": interest payments that vary by the yield to maturity each year.

Explanation:

Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.

3 0
3 years ago
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