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aliina [53]
3 years ago
10

Presented below are four statements which you are to identify as true or false.

Business
1 answer:
vagabundo [1.1K]3 years ago
6 0

Answer:

1. True.

2. False.

3. True.

4. False.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles. It comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

GAAP includes each of the following pronouncements:

  • Statements of Financial Accounting Standards.
  • Accounting Research Bulletins.
  • Accounting Principles Board Opinions.

For external reporting purposes, US Generally Accepted Accounting Principles (GAAP) allows companies to use only the traditional format of the income statement.

When accountants prepare and compile financial statements for public firms, it must be in line with United States of America, Generally Accepted Accounting Principles (GAAP).

Also, the financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.

<em>Additionally, Securities and Exchange Commission (SEC) reviews registration statements of bond issuers, investment advisers etc, to ensure they comply with current laws and regulations. </em>

1. <u>True</u>: GAAP is the term used to indicate the whole body of FASB authoritative literature.

2. <u>False</u>: Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. All companies are required to follow the disclosure requirements at all times.

3. <u>True</u>: The primary governmental body that has influence over the FASB is the SEC.

4. <u>False</u>: The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. FASB has to follow due process all the time in issuing standards.

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Spice sells paprika for $9.00 per bottle. Variable cost is $2.43 per bottle and Spice's annual fixed costs are $825,000. The var
yKpoI14uk [10]

The variable expense ratio for paprika is 27%.

<h3>Variable expense ratio</h3>

Using this formula

Variable expense ratio=Variable cost/Selling price

Where:

Variable cost=$2.43

Selling price=$9

Let plug in the formula

Variable expense ratio=2.43/9×100

Variable expense ratio=27%

Inconclusion the variable expense ratio for paprika is 27%.

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5 0
2 years ago
The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the margi
alexdok [17]

The true statement about this natural monopoly is that It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

  • Also, it is a true statement that natural monopolies can earn positive profit in the long run without the government regulation.

<h3>What is a natural monopolies?</h3>

This refers to the type of monopoly that exists in a particular market if a single firm can serve that market at lower cost than any combination of two or more firms.

It mostly occurs when when the most efficient number of firms in the industry is one. Also, a natural monopoly will ideally have very high fixed costs implying that it is impractical to have multiple firms producing the good.

A very good example of a natural monopoly is the case of tap water.

Hence, the true statement about this natural monopoly is that It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers and it is a true statement that natural monopolies can earn positive profit in the long run without the government regulation.

Therefore, the answers are Option B and True.

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brainly.com/question/13113415

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5 0
1 year ago
For a business credit card, most companies that issue credit, including Visa and Mastercard, specifically state their liability
lora16 [44]

Answer: Cover up to $500 of liability

Explanation:

When one suspect that there has been unauthorized transactions in ones accounts which could be due to fraud, such business or person can make a complaint as soon as possible.

As soon as the report is made, the person is no longer in charge of the unauthorized use of such card. In a case whereby the loss is reported within two days, the liability is limited to $50 but when the report is made within 60 days after ones statement has been sent to the person or business, this may lead to a liability of $500.

Cover upto liability of $500. If the report is made within 60 days of receiving statement that shows fradulent transactions. If it is not reported within 60 days then the liability is unlimited.

3 0
3 years ago
When moa industries renegotiated their loan agreement, they borrowed an additional $2 million. the new loan requires moa to repa
Lelechka [254]
Had to look for the missing options and here is my answer.
The term that best fits the blank is DEBT. When we say Debt Financing, this is when a company raises money for their capital through the selling of different bills or bonds to investors. In the scenario above, you will notice that they are having an existing loan. Hope this helps.
3 0
3 years ago
Mark has a weekly income of $40, which he plans to spend on coffee and subway
strojnjashka [21]

The opportunity cost of a cup of coffee is  $4.

weekly income = $40

The price of a cup of coffee = $4

The price of a subway ticket is $2

Theopportunity cost of particular interest is the cost or advantage given up via carrying out that activity, relative to conducting an alternative pastime. more truly, it approaches if you chose one activity (for example, the funding you're giving up the possibility to do a one-of-a-kind alternative. The most reliable interest is the one that, net of its possible cost, provides a greater return compared to every other sport.

As a representation opportunity cost of the relationship between shortage and preference, the objective of possible value is to ensure the efficient use of scarce sources. It includes all related charges of a choice, both explicit and implicit. opportunity cost additionally includes the utility or monetary gain a character misplaced, if it's miles indeed more than the eco geo or actions taken

Hence, The opportunity cost of a cup of coffee is  $4.

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8 0
1 year ago
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