The AICPA is required to adopt ethics standards that are at least as restrictive as the IESBA rules.
Answer: Option D
<u>Explanation:</u>
IESBA stands for the international ethics standards board for the accountants. As clear from the full form, this board performs the activities of setting up the ethics which the accountants need to follow while they are performing their work of making the accounts.
This body is not a national level but established at an international level. The other body which is the AICPA also needs to adopt the rules which are as restrive as the ethics of the IESBA.
Answer:
The correct answer is Option A.
Explanation:
The effective interest rate (EIR) method is used when a bond is purchased at a discount or premium.
In the case of the question, the bond was purchased at $9,631 with a face value of $10,000. Interest expense is calculated as the bond price multiplied by the market rate, i.e. $9,631 x 11% = $1,059.41.
Therefore, ABC Company would record $1,059 on the first annual interest payment date using the effective-interest method.
Administrative restructuring; done at managerial level for effective decision making and delegation of power down the order.
<u>
Explanation:
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According to the narration given in the above statement the general manager is of the view that too much layer of manager will hamper the decision making and effective delegation of work.
So, after a detailed study of manager’s role and responsibility at the level he decided to downsize the structure from 10 managers to 3 managers who will report to him for making effective decisions.
He has delegated power to the new managers and by doing so it has reduced the burden of the Joe. By doing this the organisation objectives and goals can be met at the targeted time.
Answer:
7.7 per direct labor hour
Explanation:
Number of direct labor hours = 700,000 / 25
Number of direct labor hours = 28,000 labor hours
Overhead cost = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Overhead cost = 46,100 + 128,300 + 23,300 + 17,900
Overhead cost = 215,600
Predetermined overhead rate = Overhead cost/Direct labor hours
= 215,600 / 28,000 labor hours
= 7.7 per direct labor hour
Question Completion:
Centerpiece Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for the company. The following data have been assembled for the business (Click the icon to view the assembled data of Centerpiece Arrangements.) Prepare the income statement of Centerpiece Arrangements for the year ended December 31, 2018. (If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Net Income
i Data Table $ $ Insurance Expense Service Revenue Utilities Expense Rent Expense Common Stock Cash Retained Earnings, January 1, 2018 6,500 92,000 800 13,000 7,000 6,400 Salaries Expense Accounts Payable Office Supplies Dividends Accounts Receivable Equipment 42,000 2,600 2,500 4,500 3,500 27,600 5,200
Answer:
Centerpiece Arrangements
Income Statement for the year ended December 31, 2024:
Service Revenue $92,000
Expenses:
Insurance expense $6,500
Utilities expense 800
Rent expense 13,000
Salaries expense 42,000
Total Expense $62,300
Net Income $29,700
Explanation:
a) Data:
Trial Balance as for December 31, 2024:
$ $
Insurance Expense 6,500
Service Revenue 92,000
Utilities Expense 800
Rent Expense 13,000
Common Stock 7,000
Cash 6,400
Retained Earnings,
January 1, 2018 5,200
Salaries Expense 42,000
Accounts Payable 2,600
Office Supplies 2,500
Dividends 4,500
Accounts Receivable 3,500
Equipment 27,600
Total $106,800 $106,800
