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MakcuM [25]
1 year ago
4

Why are accounting assumptions necessary?

Business
1 answer:
lisabon 2012 [21]1 year ago
3 0

The accounting assumptions are necessary as these assumptions help in the establishment of credibility.

The accounting assumptions define the mechanism for reporting financial transactions in the financial statements.The purpose of accounting assumptions is to provide a basis of consistency that the readers of the financial statements can use to evaluate the genuineness of a company’s financials and confirm its financial well-being depicted in the same.

These assumptions helps establish a robust framework for reliable and consistent information and enhances the reliability, variability, and objectivity of financial statements.It offers a systematic structure concerning how the accounting transactions of an organization for a particular financial period must be recorded and reported in the financial statements.

The users of the financial statements can even make significant investment-related decisions based on the genuineness, reliability, and financial results depicted in a company’s financial statements.

To learn more about accounting assumptions here

brainly.com/question/13078486

#SPJ4

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Chester Corp. ended the year carrying $21,490,000 worth of inventory. Had they sold their entire inventory at their current pric
Readme [11.4K]

Answer: $21,490,000

Explanation:

Contribution Margin is simply the Sales less the value of variable costs.

If the inventory had been sold in its entirety, it would have added its value to the sales which means that sales would have increased by the value of the inventory which is $21,490,000.

4 0
3 years ago
Henry Ford would have been most interested to bring which modern innovation to his automotive factories?
alexandr402 [8]
"Assembly lines" is the one modern innovation among the following choices given in the question that Henry Ford would have been most interested to bring <span>to his automotive factories. The correct option among all the options that are given in the question is the fourth option or the last option. I hope it helps you.</span>
8 0
4 years ago
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Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter
Licemer1 [7]

Answer:

PV=148135,68

Explanation:

PV Present Value

CF Cash Flow

r the periodic rate of return

n   Number of periods

PV= CF/(1+r)n

PV= 176000/(1+9%)2

PV=148135,68

7 0
3 years ago
A firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing
Aleksandr-060686 [28]

Some policies favor businesses, A firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing a competitive advantage.

<h3>What is competitive advantage?</h3>

Competitive advantage is factors that allow a company or industry to produce goods and services better, expand or produce more cheaply than its rivals.

A nation's competitiveness in business depends on the capacity of the industry to innovate and upgrade.

Therefore, a firm that decides to expand internationally based on the availability of government subsidies in the host country is pursuing competitive advantage.

Learn more on competitive advantage here,

brainly.com/question/26514848

8 0
3 years ago
The government imposed a fine on the Not-So-Legal Company. The fine calls for a payment of $100,000 today, $150,000 one year fro
belka [17]

Answer:

The amount after 2 years will be $460590

Explanation:

The payment which is done 2 year from today = $200000

The payment which is done one year from today = $150000

Rate of interest = 3 %

So the amount after 1 year

A=P(1+\frac{r}{100})^n=150000(1+\frac{3}{100})^1=$154500

The amount which is done today = $100000

So amount after 2 years

A=P(1+\frac{r}{100})^n=100000(1+\frac{3}{100})^2=$106090

So total amount after 2 years = $106090+$154500+$200000 = $460590

8 0
3 years ago
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