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tensa zangetsu [6.8K]
3 years ago
6

Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of $400 to get the equipm

ent to its factory. The fair value of this equipment is $7,000. For what amount should Bad Brads BBQ record the equipment?
Business
1 answer:
rodikova [14]3 years ago
5 0

Answer:

The $5,400 is the amount should Bad Brads BBQ record the equipment.

Explanation:

According to the Generally Accepted Accounting Principles (GAAP), the amount of asset is recorded at cost or fair market value which ever is lower.

The motive behind this is to present the financial statement in true and fair value rather than mislead values.

Since in the given question, the equipment purchase cost is $5,000 and shipping charges is $400.

So,

The total cost is = Purchase cost + shipping charges

                          = $5,000 + $400

                          = $5,400

And, the fair market value is $7,000.

By using the above explanation, the $5400 is the lesser amount than the $7,000.

Hence, the $5,400 is the amount should Bad Brads BBQ record the equipment.

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QveST [7]

Answer:

B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.

C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.

Explanation:

A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.

There are certain characteristics

Option B

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Option C.

As the discounted cashflows in the nearer future will be discounted less by the discount rate as opposed to the cash flows further in future, the cashflows nearer to the present in time will contribute more to the Perpetuity than the cashflows further in time.

For example using that first example, $800 per year at a rate of 5% will be discounted to $762 in the first year but in year 10 will be discounted to $491.

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3 years ago
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ludmilkaskok [199]

Answer:

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Explanation:

Niche marketing -

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The correct answer is niche marketing .

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3 years ago
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mafiozo [28]

The test, which is used to determine whether an ad or commercial conveys the meaning intended, which is called day-after recall.

<h3>What is ad ?</h3>

Ad which is known as the advertisement is referred to the activity which grasp the attention of the customers and stimulates them to purchase the goods and services.

The day-after recall test is used to examine if an advertisement or commercial delivers the desired meaning. Therefore, it can be concluded that  day-after recall is the correct option for the given blank.

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1 year ago
To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would trac
andrew-mc [135]

To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch (C) items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.

<h3>What are inventory items?</h3>
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  • You can track inventory if your company sells stock items.
  • A product purchased for resale that is tracked in Stock and on the Balance Sheet is an inventory item.
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Therefore, to gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch (C) items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.

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Complete question:

To gain assurance that all inventory items in a client's inventory listing schedule are valid, an auditor most likely would vouch

A. Inventory tags were noted during the auditor's observation of items listed in the inventory listing schedule.

B. Inventory tags were noted during the auditor's observation of items listed in receiving reports and vendors' invoices.

C. Items listed in the inventory listing schedule to inventory tags and the auditor's recorded count sheets.

D. Items listed in receiving reports and vendors' invoices to the inventory listing schedule.

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Answer:

A) True

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Business ethics can be regarded as study of needed business policies as well as business practices. Subject needed to learn could involves could be corporate social responsibility,corporate governance and others. It should be noted that Ethics Learning to recognize ethical issues is the most important step in understanding business ethics.

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