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kondaur [170]
3 years ago
8

The organization primarily responsible for establishing accounting and reporting standards in the United States is the Financial

Accounting Standards Board (FASB).
True / False.
Business
1 answer:
Triss [41]3 years ago
6 0

Answer:

This statement is True.

Explanation:

The Financial Accounting Standards Board (FASB) is the successor of the <u><em>Accounting Principles Board</em></u> and was founded in 1973. Currently based in Norwalk - Conn, the FASB is responsible of establishing the Generally Accepted Accounting Principles (GAAP), and, overall, is in charge of setting accounting and financial reporting standards for public and private companies, as well as non-profit organizations in the United States. The FASB is also currently working to establish worldwide acceptable standards together with the International Accounting Standards Board (IASB).

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Monte’s Coffee Company purchased packaging equipment on January 5, 2014, for $86,900. The equipment was expected to have a usefu
lesantik [10]

Answer:

1.A

2014 Depreciation

Straight line method $26,667

Units-of-output $34,560

Double declining balance $57,933

2015 Depreciation

Straight line method $26,667

Units-of-output $26,840

Double declining balance $19,311

2016 Depreciation

Straight line method $26,667

Units-of-output $18,600

Double declining balance $6,437

1.B Total Depreciation in 3 years

Straight line method $80,000

Units-of-output $80,000

Double declining balance $83,681

2. Double declining balance yields the highest depreciation expense over the three-year life of an equipment

Explanation:

1.A In computing straight line method, the formula would be:

(cost of equipment - salvage value) / life of equipment

2014

(86,900 - 6,900) / 3 years = 26,667

2015

(86,900 - 6,900) / 3 years = 26,667

2016

(86,900 - 6,900) / 3 years = 26,667

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $80,001 ($26,667 + $26,667 + $26,667)

UNITS-OF-OUTPUT METHOD

Formula: (Cost of equipment - salvage value) / total operating hours of equipment x operating hours used for the year

2014

($86,900 - 6,900) / 20,000 x 8,640

($80,000 / 20,000) x 8,640

$4 per hour x 8,640 = $34,560

2015

$86,900 - 6,900) / 20,000 x 6,710

($80,000 / 20,000) x 6,710

$4 per hour x 6,710 = $26,840

2016

$86,900 - 6,900) / 20,000 x 4,650

($80,000 / 20,000) x 4,650

$4 per hour x 4,650 = $18,600

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $80,000 ($34,560 + $26,840 + $18,600)

DOUBLE DECLINING BALANCE

Formula: 100%/life of equipment x 2

*residual value will not be considered in this method of computation of depreciation expense.

2014

100% / 3 years x 2 = 66,67%

86,900 x 66.67% = $57,933

2015

100% / 3 years x 2 = 66,67%

$86,900 - $57,933 = $28,967

$28,967 x 66.67% = $19,311

2016

100% / 3 years x 2 = 66,67%

$86,900 - ($57,933 + $19,311) = $9,656

$9,656 x 66.67% = $6,437

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $83,681 ($57,933 + $19,311+ $6,437)

2. The method that yields most depreciation over the three-year life of an equipment is the DOUBLE DECLINING METHOD in a total amount of $83,681

6 0
3 years ago
DeAngelo went to the store to purchase groceries. By the time he reached the paper products aisle, he was down to his last few d
FinnZ [79.3K]

Answer:

Generic Brand

Explanation:

Based on the scenario being described it can be said that the brand that DeAngelo seems to have bought is known as a Generic Brand. These are a product brand that is distinguished by it's absence of any brand name on the package and instead it's package only defines it's characteristics. They usually are the cheapest option and compete with more expensive branded products.

3 0
3 years ago
What values can you expect from a person of integrity
Maksim231197 [3]
Believes in something, values honesty and triump
7 0
3 years ago
Read 2 more answers
December 31 2017 2016 Accounts receivable $43,060 $34,630 Inventory 30,370 39,870 Prepaid rent 16,820 15,120 Totals $90,250 $89,
morpeh [17]

Answer:

Net cash from operating activities is $57,220.

Explanation:

Using the indirect method, the Operating Activities section of the statement of cash flows can be prepared as follows:

Statement of Cash Flows

(Operating Activities Section Only)

<u>Details                                                                                          $         </u>

Net income                                                                            35,890

Adjustment to reconcile net income:

Depreciation expense                                                           18,040

(Increase) decrease in current assets:

Increase in accounts receivable ($34,630 - $43,060)        (8,430)

Decrease in inventory ($39,870 - $30,370)                          9,500

Increase in prepaid rent ($15,120 - $16,820)                        (1,700)

Increase (decrease) in current liabilities:

Increase in accounts payable ($25,610 - $19,430)                6,180

Decrease in income taxes payable ($5,970 - $10,500)      (4,530)

Increase in interest payable ($14,710 - $12,440)               <u>     2,270  </u>

Net cash from operating activities                                  <u>    57,220  </u>

5 0
2 years ago
Arbitration places a dispute before a third party for a binding settlement. true or false
kenny6666 [7]
<em />It is true that arbitration places a dispute before a third party for a binding settlement. 
4 0
3 years ago
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