Answer: Yes
Explanation:
The construction company is entitled to compensation because it has a property right to enter and remove minerals.
The investor gave the construction company the right to use the properties on the land, if anything would be done on the land, the construction company should be compensated because they bought the right to do business there. Since the owner granted them the sole right, they are entitled to the resources.
Answer:
The option B is a correct answer which is useful in assessing the liquidity position of a company.
Explanation:
Defensive Interval Ratio :
The defensive interval ratio (DIR) is that ratio which measures that by how many days can company operate without fixed assets or non current assets.
It is a type of liquidity ratio which shows that company can pay its current obligations without impacting long term obligations. It is always display in days.
Return on Stockholders' equity :
The return on stockholder equity is a profitability ratio which represents how much the company is earning profit during a particular period.
Liquidity ratio:
The liquidity ratio is that ratio which shows the relationship between current assets and current liabilities. It describes that how the company can meet its short term obligations with its available current assets.
Thus, by above explanation it is clear that the option B is a correct answer which is useful in assessing the liquidity position of a company.
If an auditor is asked to observe the overstatement of sales, the auditor trace transactions from The cash receipts diary should be linked to the sales journal.
<h3>How would an auditor detect the
overstatement of sales?</h3>
The auditor detect the overstatement of sales are given below-
- Observe a sample of transfers from the sales journal to the central ledger's sales account.
- Approve a sample of sales from the sales diary to the shipment papers.
Thus, The cash receipts diary should be linked to the sales journal.
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Answer:
When Manufacturing of a Product involves several processes.
Explanation:
When several processes are involved in manufacturing a product, costs need to be accumulated in these processing departments. Thus, A process cost accounting system is most appropriate
Answer:
b) No, the correct entry would be a debit to Maintenance and Repairs Expense and a credit to Cash.
Explanation:
Any expense will be capitalized when it increases the capacity and efficiency of the asset. A routine repair cost is incurred in order to keep the asset operational to generate income for the business.
To record the repair cost we need to debit the Maintenance and Repairs Expense and crediting cash ( assumed cash payment is made for the repairs ). We should not capitalize this cost by debiting the asset cost account.
