Answer:
<em>Please see explanation</em>
Explanation:
1. Commitment : A contractual obligation to carry out a transaction at specified terms in the future. Material commitments should be disclosed in the financial statement.
2. Contingent liability: a possible liability stemming from past events, that would be resolved as to the existence and amount by some future event.
3. General risk contingency: An element of the business environment that involves some risk of a future loss. Examples include the risk of accident, strike, price fluctuations, or natural catastrophe. General risk contingencies should not be disclosed in financial statements.
4. Iron curtain approach: An approach to making materiality judgments that quantifies the total likely misstatement as of the current year-end based on the effects of reflecting all misstatements (including projecting misstatements where appropriate) existing in the balance sheet at the end of the current year.
5. Known misstatements: Specific misstatements identified by the auditor during the course of the audit.
6. Likely misstatements: Misstatements identified by the auditor during the course of the audit that are due to either extrapolation from audit evidence or differences in accounting estimates.
7. Loss contingency: A possible loss, stemming from past events that will be resolved as to the existence and amount by some future event.
8. Rollover approach: An element of the business environment that involves some risk of a future loss.
Answer:
Option (c) $300
Explanation:
Data provided in the question:
Time taken to complete the setup process for a certain electrical component
= 8 hours
Average setup cost = $150 per hour
Time taken to complete the process by competitor company = 6 hours
Now,
Flagler’s non-value-added cost
= (Difference in time taken by the companies) × Average setup cost
or
Flagler’s non-value-added cost = ( 8 - 6 ) × 150
or
Flagler’s non-value-added cost = 2 × 150
or
Flagler’s non-value-added cost = $300
Hence,
Option (c) $300
Answer:
true
Explanation:
A corporation is a form of business that gives room for seprate , legal entity but it is usually guided by some group of intelectuals referred to as board of directors. The corporation structure is the most advantageous way to kick start a business because it is the corporation operates as a separate entity.
Corporation has all the legal rights of an individual except some little limitations on right to voting and some other little limitations.
Explanation:
The computation of the depreciation expense for the first year and the second year is shown below:
a) Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($3,900 - $300) ÷ (4 years)
= ($3,600) ÷ (4 years)
= $900
In this method, the depreciation is same for all the remaining useful life
So, in year 2 the depreciation expense is also $900
(b) Double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 4
= 25%
Now the rate is double So, 50%
In year 1, the original cost is $3,900, so the depreciation is $1,950 after applying the 50% depreciation rate
And, in year 2, the $1,950 × 50% = $975
Answer:
$210
Explanation:
Calculation for what the amount of interest to be accrued on December 31 will be
Using this formula
Accrued interest =Amount lent×Promissory note percentage
Let plug in the formula
Accrued interest=$3,500×6%
Accrued interest=$210
Therefore the amount of interest to be accrued on December 31 will be $210
