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Zanzabum
3 years ago
6

Gore Inc. recorded a liability in 2021 for probable litigation losses of $2 million. Ultimately, $5 million in legitimate warran

ty claims were filed by Gore's customers. Multiple Choice Gore has made a change in accounting principle, requiring retrospective adjustment. Gore needs to correct an accounting error. Gore is required to adjust a change in accounting estimate prospectively. Gore is not required to make any accounting adjustments.
Business
1 answer:
KengaRu [80]3 years ago
4 0

Answer:

Gore is not required to make any accounting adjustments

Explanation:

Gore won't be required to make any accounting adjustments because the litigation loss is already $2,000,000 leading to him recording a liability in his account in which

$5 million in legitimate warranty claims were as well filed by his customers which is why he won't be making any further Accounting adjustment in 2021.

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The farm always comes_______. This is something many feel the general public does not understand unless they came from a farm.
joja [24]

Answer:

First

Explanation:

something many people dont understand is a farm is a business and it always comes first. hope this helps

3 0
3 years ago
A home buyer can afford to spend no more than $1500/month on mortgage payments. Suppose that the interest rate is 6%, that inter
krok68 [10]

Answer:

20 years mortgage:

maximum loan  $ 209, 371.16

interest paid     $  150,628.84

30 years mortage

maximum loan  $ 250,187.4216

interest paid     $  289,812.58

Explanation:

20 years mortgage:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,500.00

time 240 (20 years x 12 months)

rate 0.005 ( 6% annual / 12 months per year)

1500 \times \frac{1-(1+0.005)^{-240} }{0.005} = PV\\

PV $209,371.1575

Quota x number of cuotas - principal = total interest

1,500 x 240 - 209,371.16 = 150628.84

30 years mortgage

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,500.00

time 360

rate 0.005

1500 \times \frac{1-(1+0.005)^{-360} }{0.005} = PV\\

PV $250,187.4216

Quota x number of cuotas - principal = total interest

1,500 x 360 - 250,187.42 = 289,812.58

8 0
3 years ago
Consider the following information from the financial statements for Rock Inc. Last Year This Year Accounts Receivable 23,535 29
Nesterboy [21]

Answer:

Rock Inc.

Gross profit ratio:

= 0.70

Explanation:

a) Data and Calculations:

Sales                      $473,864

Cost of Goods Sold 142,263

Gross profit           $331,601

Gross profit ratio = Gross profit/Sales

= $331,601/$473,864

= 0.69978

= 0.70

b) Rock's gross profit is the difference between the Sales Revenue and the Cost of Goods Sold.  It is the first profit point on the Income Statement.  It measures the company's ability to convert sales revenue into profit after accounting for the cost of goods sold.  This profit will cover the expenses incurred in running the business for the particular period.

7 0
3 years ago
a semiannual interest of 3.5%. Any money he invests would have to be left in the fund for at least five years if he wanted to wi
Lemur [1.5K]

Answer:

Results are below.

Explanation:

Giving the following information:

The semiannual interest of 3.5%.

A) We need to calculate the nominal interest rate:

Nominal interest rate= 0.035/2= 0.0175

B) Real interest rate:

Real interest rate= (1.0175^2) - 1= 0.03531

It compounds interest twice a year. Therefore, is higher

C) Investment= $8,000

We will use the following formula:

FV= PV*(1+i)^n

n= 10

i= 0.175

PV= 8,000

FV= 8,000*(1.0175^10)

FV= $9,515.56

8 0
3 years ago
Which of the following is a criterion that must be met in order for an item to be recognized as an intangible asset?
Amiraneli [1.4K]

Answer:

The item is identifiable and lacks physical substance.

Explanation:

Intangible asset: Intangible asset is that asset which cannot be seen or even touched. It has no physical existence.

Example: Goodwill, patents, trademarks, copyrights and other intellectual properties

In these types of assets, amortization is charged instead of depreciation.  

It neither used for production, nor its gains any scientific or technical knowledge, and its value neither measure reliability

Hence, option a is correct  

3 0
3 years ago
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