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zhenek [66]
3 years ago
8

The expense recognition (matching) principle requires that expenses (expenses/assets/liabilities) be recorded in the same accoun

ting period as the (expenses/revenues/assets) that are recognized as a result of those costs. This principle is a major part of the timing (timing/adjusting/estimating) process.
Business
1 answer:
Tju [1.3M]3 years ago
8 0

Answer:

Expenses ; revenues ; adjusting

Explanation:

According to the expense recognition or matching principle, the expenses that are incurred in a particular period should be matched with the revenues that are earned in that particular period.

This principle major part is of the adjustments so that the adjustment entries are passed so that the financial statements represents the true and fair view to the users of the accounting information

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Fritz Evans is the owner and operator of Be-The-One, a motivational consulting business.
almond37 [142]

Answer:

2013 Equity: 298,000

2014 Equity: 327,000

Explanation:

(A)

Assets = Liabilities + Equity

395,000 = 97,000 + Equity

395,000 - 97,000 = Equity

298,000 =  Equity

(B)

if asset increase by 65,000

and liabilities increase by 36,000

(395,000 + 65,000)  = (97,000 + 36,000) + Equity

460,000 = 133,000 + Equity

Equity = 460,000 - 133,000 = 327,000

5 0
3 years ago
A 10-year semi-annual coupon bond with an $1000 par value pays an annual coupon rate of 6% and the market requires 8% APR. What
arlik [135]

Answer:

Coupon= $30 per period.

20 period for semi annual coupon payment.

28.148% discount rate

Explanation:

1.) Coupon rate * face value of bond = coupon

semi annual rate =6%/2=3%

Coupon= 1000 *3%= $30 per period.

2.) t= number of periods = years of maturity * coupon payment semi-annual

t= 10 * 2 = 20 periods.

3. Discount rate formula =C+[(F-P)/t] / (F+P/2)

where C=coupon payment annual

F= face value of security

P=price of security= 1000 *8%=80

t= years of maturity.

so we have⇒ 60+[(1000-80)/10]/(1000+80)/2

=152/540

=28.148%

4 0
3 years ago
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally
stiks02 [169]

Answer:

Effect on income= $0

Explanation:

<u>Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.</u>

Effect on income= total sales revenue - total variable cost

Effect on income= 24*4,960 - (20 + 4)*4,960

Effect on income= $0

8 0
3 years ago
While any given advertisement for a product may focus on only one or a few purchasing motives, the _____. advertising campaign s
Lerok [7]
I think the correct answer would be <span>advertising campaign needs to cover all the important purchase motives of the target market. The advertising campaign should target all of the possible motives. Hope this answers the question. Have a nice day.</span>
3 0
3 years ago
Read 2 more answers
Sabv Corporation's break-even-point in sales is $840,000, and its variable expenses are 75% of sales. If the company lost $34,00
zhuklara [117]

Answer:sales must have amounted to:$704,000

Explanation:

Contribution ratio = Sales ratio - Variable cost ratio

= 100%- 75%

=25%

Sales to break even = Fixed expenses / Contribution margin ratio

Therefore,

 Fixed expenses = Sales to break even   x  Contribution margin ratio

=$840,000 x 25%

=$210,000

Contribution margin can also be calculated as

Fixed expenses- Operating loss

=$210,000 -$34,000

=$176,000

Sales = Contribution margin/ Contribution ratio

= $176,000/25% =$704,000

5 0
3 years ago
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