Answer:
Most changes in accounting principles are only reported in current periods when the principle change takes place.
Explanation:
Accounting principle can be defined as a general guideline to be followed by accountants or financial institutions when they record and report their financial transactions.
A change in an accounting principle involves a change in an accounting method used.
For instance, an accountant switching between First In, First Out (FIFO) to Last In, First Out (LIFO) method of inventory valuation or by using another depreciation method.
Additionally, an accounting principle should only be changed, if it's applicable to the accounting framework being used such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Also, it is important to state in the footnotes of the financial statements a full disclosure to highlight the justification for the preferred change and financial implications of this change.
The following are true about the change in accounting principles;
1. Most changes in accounting principles are retroactively reported.
2. Changes in accounting principles are allowed when new principles are preferable to old ones.
3. Consistency is one of the biggest concerns when a change in accounting principle is undertaken.
Answer:
Total equivalent units= 16,800
Explanation:
Giving the following information:
Beginning inventory= 1,100 units 80% complete
Units produced= 10,500 units
Ending WIP= 10,500 60% complete
<u>The weighted average method blends the costs and units of the previous period with the costs and units of the current period.</u>
Beginning inventory= 0
Units completed in the period= 100%
Ending inventory WIP= units*completion
<u>In this exercise:</u>
Beginning inventory= 0
Units completed in the period= 10,500
Ending inventory WIP= 10,500*0.6
Total equivalent units= 16,800
The average (arithmetic mean) of these amounts can be found by adding all the values up, and dividing by the number of values (5).
The sum of the numbers is : 918,175.50
918,175.50 / 5 = 183,635.10
The Bond will sell at a price that is equal to $500,000 (OPTION A).
Bond: Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental).
A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower.
Interest rates and bond prices are inversely correlated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall.
In a portfolio, bonds continue to offer these advantages whether yields are rising or dropping. I mean, both stocks and bonds may experience a short-term price fall during times of rising interest rates. The price of the bonds will decrease as they react to increased interest rates.
To learn more about Bonds, visit the following link:
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Answer:
Basis of Lewis of Lot #3 = $16,500
Explanation:
Total of all the lots = $25,000 + $31,250 + $20,625 + $48,125 = $125,000
Since the land is purchased for $100,000
The basis for each dollar = $100,000/$125,000 = $0.8 for each dollar
Thus for Lot #3 basis = $0.8 X $20,625 = $16,500
Note: The basis is calculated so that directly the lot value is not considered as the total cost is only 80% of total lot value.
Basis of Lewis of Lot #3 = $16,500
