All categories

1 year ago

The two accounting principles that are critical to the adjusting process used in accrual accounting are:_______

1 answer:

5 0

The matching principle and the revenue recognition principle are the two accounting principles that are critical to the adjusting process.

The revenue that should be recognized in the accounting period in which it is earned is stated by the revenue recognition principle. Efforts (expenses) can be matched with accomplishments (revenues) as stated by the matching principle.

Revenue recognition principle: It is a generally accepted accounting principle (GAAP) that stipulates how and when the recognition of revenue should be done. This principle is using accrual accounting requires in the revenues are recognized when realized and earned but not when cash is received.

The matching principle: It is also an accounting principle that records revenues and expenses. It needs the business records expenses alongside when revenues are earned. They both fall within the same period of time for the clearest tracking ideally. Businesses must incur expenses to earn revenues as which is recognized by the particular principle.

Learn to know more about three steps in the accounting process on

brainly.com/question/24232215

#SPJ4

You might be interested in

b) Upscale hotels in the United States recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates

Alborosie

It is to be noted that the company is not allocating resources efficiently. See the attached image for the Graphically illustration required.

<h3>What is allocation of resources?</h3>

This is simply the ability to efficiently distribute resources across all aspects of production.

<h3>What is the proof that the company is misappropriating resources?</h3>

MRS is the gradient of the budget line is defined by the change in the Y axis divided by the change in the x axis.

In other words, MRS is the number of units of x that a customer is ready to give up in exchange for units of y.

Note that
the MRS fo the budget line is:

-dy/dx

= -10.6/6.25

= -1.6, that is media 1.6 units of media is given for every unit of business travel.

However, the corporation claims that the MRS is -1, which indicates that for every unit of business trip, they give away one unit of media. In other words, they are paying a price equal to the cost of business travel, resulting in a resource misappropriation.

Learn more about allocation of resources at;
brainly.com/question/5322091
#SPJ1

6 0

1 year ago

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n):_

zimovet [89]

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n): <u>expert forecasting survey.</u>

A survey is a survey method that collects data from a predefined group of respondents to provide information and insights on a variety of topics of interest. They have multiple purposes, and researchers can implement them in different ways, depending on the methodology chosen and the purpose of the study.

Surveys are used to collect or generate insights in areas such as social surveys and demographics. Research studies are often used to assess thoughts, opinions, and emotions. The survey can be specific and limited, or it can set more global and broader goals. types of surveys and their usage. Most studies fall into three different categories: exploratory, descriptive, and causal. In the world of online research, mastering all three will give you more informed insights and higher quality information.

Learn more about Surveys here: brainly.com/question/4300488

#SPJ4

3 0

1 year ago

Which one of the following represents the minimum rate of return a firm must earn on its assets if it is to maintain the current

FinnZ [79.3K]

Answer:

B. Weighted average cost of capital

Explanation:

The Weighted average cost of capital is abbreviated as the WACC. It is the weighted average of cost of common equity, cost of preferred equity and aftertax cost of debt. For a company to have a breakeven in returns, they need to earn a minimum rate of return on its assets which is equivalent to the weighted average cost of capital(WACC) making choice B correct.

5 0

3 years ago

Prine Company purchased equipment on January 1, 2018, for $ 25 comma 000. Suppose Prine Company sold the equipment for $ 3 com

Marat540 [252]

Answer:

a. The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale of the equipment:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

Explanation:

To recognize gain or loss on the sale of the equipment:

First, the company calculates the carrying amount of the asset by using the original cost of the asset, minus all accumulated depreciation and any accumulated impairment charges.

Then, subtract this carrying amount from the sale price of the asset. If the remainder is positive, it is a gain and if the remainder is negative, it is a loss

On December 31, 2019, the carrying amount of the asset = $25,000 - $16,000 = $9,000

Sale price - Carrying amount of the asset = $3,000 - $9,000 = -$6,000

=> The company recognizes loss on the sale of the equipment $6,000

b. The entry to record the sale should be made:

Debit Cash $3,000

Debit Accumulated depreciation account $16,000

Debit Loss on sale equipment $6,000

Credit Equipment $25,000

4 0

3 years ago

Reliable Industries is a maker of component parts in heating and cooling ventilation systems. The company is looking for a site

sladkih [1.3K]

Answer: facility location

Explanation:

Based on the information given, it can be infered that Reliable Industries is in the process of facility location.

Facility Location simply refers to the selection of the rightt location for the manufacturing facility. The location selected should be easily accessible for the customers and transportation.

Selecting a suitable facility location is essential for an effective operation.

4 0

2 years ago