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3 years ago

The matching principle is best demonstrated by:________.

Business

1 answer:

aniked [119]3 years ago

7 0

Answer:

d. Allocating the cost of an asset to expense over the periods during which benefits are derived from the asset

Explanation:

The matching principle is an accounting concept which states that the expenses incurred by a company and the revenue earned by the company should be recorded in the period to which they relate to. This means that for every revenue earned and expenses incurred, both must be matched on the company's income statement in the period the transactions occurred.

One of the benefits of matching principle is that it affords investors to see a normal income statement where revenues and expenditure are placed side by side hence enable them to know the true picture of the business. It therefore means that allocating the cost of an asset to expense over the periods during which benefits are derived from the asset is a matching principle concept in accounting.

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Jackie has determined some possible careers that would suit her include being a photographer, a graphic artist, a web designer,

BaLLatris [955]

The answer is D. Gather information. Took the test and it was correct.

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3 years ago

Read 2 more answers

LF Corporation, a manufacturer of Mexican foods, contracted in 2014 to purchase 1,500 pounds of a spice mixture at $5.00 per pou

kramer

Answer:

(b) a loss of $750

Explanation:

Given;

Amount of spice mixture to be purchased = 1500 pounds

Price of spice mixture in 2014 = $5.00 per pound

Changed price of sugar mixture = $4.50 per pound

Now,

The amount to be received on the day of contract in 2014

= Amount of spice mixture to be purchased × Price of spice mixture in 2014

= 1500 × $5.00

= $7,500

and,

The amount to be received in 2015

= Amount of spice mixture to be purchased × Price of spice mixture in 2015

= 1500 × $4.50

= $6,750

The difference in Expected amount and the amount to be received

= $7500 - $6750

= $750

Since the amount to be received is less than the expected amount on the day of contract

Therefore,

a loss will be recognized

Hence,

the correct answer is option (b) a loss of $750

5 0

3 years ago

On January 1 of this year, Trucks R Us Corporation issued bonds with a face value of $ 2,000,000 and a coupon rate of 10 percent

Anestetic [448]

Bonds Payable amount reflected in balance sheet = $2192890

Face Value = $2000000

Coupon Rate = 10%

Maturity Period = 10 years

Number of compounding = 2

Interest = $2000000 * 10% * 6/12 = $100000

Period = 2 * 10 = 20

Maturity Value = Face Value = $2000000

Market Interest Rate semiannually = 0.085 / 2 = 0.0425

Market Value = Present Value of Future Cash Flows

= PV of Interest + PV of maturity value

= (Interest * PVAF (4.25%, 20)) + (Maturity Value * PVIF (4.25%, 20))

= (100000 * 13.29437) + (2000000 * 0.434989)

= $1329437 + $869978

= $2199415

Since market value is greater than face value, we can say that bonds are issued at a premium.

Premium = $2199415 - $2000000 = $199415

Journal Entry to record the issuance of bonds:

Cash a/c Dr $2199415

To Bonds Payable a/c $2000000

To Premium on the issue of bonds $199415

Bonds Payable amount is a liability account that carries the quantity owed to bondholders by way of the company. This account usually seems in the lengthy-term liabilities section of the stability sheet, on account that bonds usually mature in more than one year.

Learn more about Bonds Payable amount here: brainly.com/question/7158291

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1 year ago

When the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip and still continued to produce all of its other Coo

Mashutka [201]

If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.

<h3>What is line extension?</h3>

The process of expanding an established product line is referred to as line extensions.
When a corporation with a well-known brand releases new items in a product segment.
The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.

Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.

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The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of

a. a brand extension.

b. quality modification.

c. line extension.

d. a new-to-the-world product.

e. functional modification.

8 0

2 years ago

Tanner, Inc. incurred a financial and taxable loss for 2018. Tanner therefore decided to use the carryback provisions as it had

inessss [21]

Answer:

The refund claimed should be shown as a benefit due to loss carryback in 2018.

Explanation:

Since Tanner, Inc. incurred a financial and taxable loss for 2018. and decided to use the carryback provisions as it had been profitable up to this year, the amounts related to the carryback should be reported in the 2018 financial statements as a benefit due.

Tax loss carryback is when a corporation <u>retrospectively adjusts its tax returns for prior periods</u> if it incurs a net operating loss (NOL) in current period.

The loss carryback <u>generates a tax refund</u> for the business because it reduces previous year tax liability. After the carried back loss is applied, it will be <u>as though the business overpaid taxes the previous year; which will now be shown as a benefit in the current year</u>

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3 years ago