Complete question:
Identify the account concept,assumption, or principal that best applies to each of the following situations:
Burger King, the restaurant chain, sold a store location to McDonald's. How can Burger King determine the sale price of the store - by a professional appraisal, Burger King cost, or the amount actually received from the sale?
Answer:
Historical cost principle
Explanation:
The initial nominal financial value of the commodity is the average expense of a commercial object. The cost estimate is traditionally focused on recording assets at their nominal expense, which are not adjusted to adjust the costs of the products.
The original nominal financial value of the commodity is the average expense of a commercial object. The cost estimate is traditionally focused on recording assets at their nominal expense, which are not adjusted to adjust the costs of the products.
Answer:
EAR = (1+APR/m)^m - 1 where m=compounding periods
1. 0.116 = (1+APR/2)^2 - 1
(1+0.116) = (1+APR/2)^2
(1.116)^(1/2) = 1+APR/2
APR = [(1.107)^(1/2) - 1]*2
APR = [1.05214067501 - 1]*2
APR = 0.05214067501 * 2
APR = 0.10428135002
APR = 10.43%
2. 0.116 = (1+APR/12)^12-1
APR = [(1+0.116)^(1/12)-1]*12
APR = [1.116^(1/12) - 1] * 12
APR = [1.00918785692 - 1] * 12
APR = 0.00918785692 * 12
APR = 0.11025428304
APR = 11.05%
3. 0.093 = (1+APR/52)^52 - 1
APR = [(1+0.093)^(1/52) - 1] * 52
APR = [1.093^(1/52) - 1] * 52
APR = [1.0017115825 - 1] * 52
APR = 0.0017115825 * 52
APR = 0.08900229
APR = 8.90%
Answer:
$42,800
Explanation:
The computation of the net income for the year is shown below:
= Service revenue - advertising expense - depreciation expense - insurance expense - rent expense - salaries & wages expense - supplies expense
= $133,000 - $20,600 - $11,900 - $3,100 - $17,300 - $31,400 - $5,900
= $42,800
We simply deduct all the expenses from the service revenue so that the net income for the year could come
Answer:
A.
Explanation:
The cost principle means that in accounting, any transaction is recorded at the historical purchase price.
A fair value is the amount at which an asset could be exchanged in an arm´s length transaction between knowledgeable and willing parties.
Revaluation of fixed assets is not allowed for GAAP.
An appreciated value is an increase in the value of an asset over time.
A market value is the price at which a product or service could be sold in a competitive, open market.
I think it's guessing from context? Hope I helped!
