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1 year ago

Explain what the time period assumption means.

1 answer:

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.

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3 years ago

If you were to design a range of athletic shoes for various sports activities, what key factors would you consider during the de

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Answer:

Key factors:

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2 years ago

A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimate

MrMuchimi

Answer:

Dr Seller Account $100

Cr Buyer Account $100

Explanation:

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3 years ago

Johnson Corporation unadjusted trial balance at year-end include the following accounts. Compute the uncollectible account expen

Alborosie

Answer:

Explanation:

The journal entries are shown below:

A. Uncollectible Expense A/c Dr $11,520

To Allowance for doubtful accounts A/c $11,520

(Being the uncollectible expense is recorded)

The computation is shown below:

= $1,152,000 × 1%

= $11,520

B. Uncollectible Expense A/c Dr $12,960

To Allowance for doubtful accounts A/c $12,960

(Being the uncollectible expense is recorded)

The computation is shown below:

= $1,152,000 × 1.5% × 75%

= $12,960

C. Uncollectible Expense A/c Dr $9,816

To Allowance for doubtful accounts A/c $9,816

(Being the uncollectible expense is recorded)

The computation is shown below:

= $12,000 - $2,184

= $9,816

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2 years ago

Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 220,000 shares outstanding, and its debt-to-ass

stellarik [79]

Answer: Option (c) is correct.

Explanation:

Given that,

EPS = $3.50

Book value per share = $22.75

Shares outstanding = 220,000

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= $5,005,000

Total Assets = $\frac{Total\ Equity}{1 - Debt\ to\ assets\ ratio}$

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= $4,263,518.52

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2 years ago