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TiliK225 [7]
3 years ago
8

Lisa Smith decided to start her CPA practice as a professional​ corporation, Smith​ CPA, PC. The corporation purchased an office

building for​ $35,000. The real estate agent said the building was worth​ $50,000 in the current market. The corporation recorded the building as a​ $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being​ violated? A) cost principle
B) economic entity assumption
C) monetary unit assumption
D) going concern assumption
Business
1 answer:
NeTakaya3 years ago
4 0

Answer:

A) cost principle

Explanation:

Cost Principle is a fundamental guideline in accounting. It states that assets should be recorded in it's cash amount or it's equivalent at the time of purchase. In this scenario, the corporation(Smith CPA, PC) ignored this fundamental principle and decided on a figure which didn't reflect the value paid for.

$35,000 is the cash value and should be recorded as the vlue of the building.  

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Spencer Enterprises is attempting to choose among a series of new investment alternatives. The potential investment alternatives
fomenos

Answer:

Assume: only one of the ware house expansion projects can be implemented and suppose that, if test marketing of the new product is carried out, the advertising campaign also must be conducted and vice versa. Also suppose that the purchase of new equipment cannot be undertaken unless the basic research or the extensive warehouse expansion are implemented.

Formulate the corresponding model for maximizing the net present value subject to the restrictions stated above

Yi (1 if investment alternative is selected, o otherwise)

i = 1, 2, 3, 4, 5, 6

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4 0
3 years ago
What are the ramifications for an organization if it is not compliant with legal mandates?
astraxan [27]

Answer and explanation:

Several effects could result in not following legal mandates for an organization. Lawsuits, penalties and fines, a decrease in reputation, and loss of opportunities are the most immediate. However, even if those consequences are obvious, some companies surpass legal regulations to avoid expenses that could reduce their revenue.

3 0
3 years ago
All of the following statements regarding leases are true except _______.
dalvyx [7]

Answer:

I think its D

Explanation:

Hpe this helps.

8 0
4 years ago
Assume that you plan to open a soft ice-cream franchise in a resort community during the summer months. Fixed operating costs fo
ziro4ka [17]

Answer:

$2.45

Explanation:

Fixed cost = $9,800

Variable cost:

= Units sold × (cost of the ice cream and cone + franchise fee)

= 24000 × ($0.76 + $0.24)

= $24,000

So,

total cost = Fixed cost +  Variable cost

               = $9,800 + $24,000

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Profit = $25,000

Now,

Sales = $58,800

Sales unit = 24,000

So,

Sales price per unit:

= $58,800 ÷ 24,000

= $2.45

Hence, the price one should charge for each ice cream cone to achieve a $25,000 profit for the three-month period is $2.45.

6 0
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Which of the following is an example of party retailing?
Gnoma [55]
I think it would be target hope this helps
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