Answer: False
Explanation:
This seems to me like a True or False question and the answer would be False.
Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.
For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.
If you need any clarification do react or comment.
Answer:
A. Expand-ability Relevance
Explanation:
Financial statements does not need expansion, therefore expand-ability relevance is not one of the qualities of financial statements.
A. Faithful representation- financial statements must be a faithful representation of the state of the entity. it should represent the correct position of the entity.
B. Comparability - The financial statements must be prepared in accordance with acceptable standard to ensure comparison within and without the entity.
C. Consistency and Verifiability - The numbers must be verifiable and methods choosing in treating certain items must be consistent over time.
Answer:
Explanation:
Base on the scenario been described in the question, we use the following method prepare and slove the given problem
Solution to the problem is in file attached below
Option c will be
Base on this, the Cost of goods sold: $ 934
Answer: cost of units transferred out during the month=A. $45,000
Explanation:
Material costs =Number of units completed and transferred out x Cost per equivalent unit for material
= 9000 units x $2.00 = $18,000
Conversion cost = Number of units completed and transferred out x Cost per equivalent unit for conversion costs
= 9000 units x $3.00 = $27,000
Costs of u nits transferred out during the month = Conversion costs +Material costs
= $18,000 + $27,000
$45,000