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Feliz [49]
3 years ago
12

Doctor Smith is contemplating the purchase of Dr. Johnson’s practice. Frank, his office manager, is about to prepare a worksheet

combining the results of both practices so Dr. Smith can review it. Frank has a twelve-month financial statement for Dr. Smith’s office and a nine-month financial statement from Dr. Johnson’s office. Which of the following approaches is correct?
(A) The nine-month statement should first be annualized
(B) Consistency over time periods is not necessary, so Frank can proceed
(C) Neither of the above
Business
1 answer:
Margaret [11]3 years ago
6 0

Answer:

(A) The nine-month statement should first be annualized.

Explanation:

In accounting when preparing financial statements there is a standard period of financial statements that should be adhered to. The financial statements should be of the same duration. So comparing a nine month financial statement to a twelve month financial statement is against standard accounting practices.

Moreover it will not give a clear picture when comparism is done this way. For example if two companies both have income of about $1,000,000 and financial statements of nine and twelve months are compared. The company with nine months financial statement will show lower income than the one with twelve month statement, and this is not the reality.

So the nine month statement should be annualised to ease comparability.

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Sketches Inc. purchased a machine on January 1, 2016. The cost of the machine was $29,000. Its estimated residual value was $9,0
ivolga24 [154]

Answer:

Annual depreciation= $4,000

Explanation:

Giving the following information:

The cost of the machine was $29,000. Its estimated residual value was $9,000 at the end of estimated 5-year life.

<u>To calculate the depreciation expense, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (29,000 - 9,000)/5

Annual depreciation= $4,000

8 0
3 years ago
In order to hire graduates and postgraduates of microbiology, Arthur, the human resource (HR) manager at Kartholfen, a pharmaceu
ss7ja [257]

Answer:

<em><u>External recruitment.</u></em>

Explanation:

External recruitment is a strategic process that the corporate human resources sector uses to select out-of-company candidates with qualified profiles to fill available jobs within the organization.

Companies often use varied sources to select candidates, the most common being talent banks, job fairs, recruitment sites, newspapers and more.

The biggest benefits an organization can derive from performing an external recruitment process are greater choice among candidates, talent renewal, increased competitiveness by hiring a top talent and increasing diversity among professionals.

6 0
3 years ago
The cost of using/borrowing money is reflected in the
spayn [35]
Interest rate? Repayment amounts? Length of time of loan? Smile on the face of the money lender? Might there be a little more to this quesition?
8 0
3 years ago
Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 2
Aneli [31]

Answer:

Dr accounts payable   $2,300

Cr cash                                      $2300

Explanation:

Initially the cost of the purchases=$4600

Returning half of the disc means the left for the discs actually bought is half of the invoice price of $4600 i.e $2,300

By not paying within the discount period implies that the debt stands at $2,300

Without mincing words,payment of $2,300 to the supplier automatically translates to debiting account payable with $2,300 and crediting cash account with the same amount.

The correct answer would :

Dr accounts payable   $2,300

Cr cash                                      $2300

This is missing from the options provided.

3 0
3 years ago
1. The planned effort to present a unique image through newspapers, community events, and other visible
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Five is C four is C threes is B two is D one is C
6 0
3 years ago
Read 2 more answers
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