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3 years ago

Financial statements does not cover a period of time but rather reports amounts at a specific point in time?

1 answer:

6 0

The answer is: Balance sheet
The balance sheet on the financial statements will show the total amount of each accounts that the company manages to accumulate throughout its operational years. The amount of the balance sheet on current year will be used as a starting point when calculating the balance sheet for the next year

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What is accounting theory

Gemiola [76]

Answer:

a set of assumption framework and methodologies used in the study of application of financial reporting principles

8 0

3 years ago

The Tree Top Airline (TTA) is a small feeder-freight line started with very limited capital to serve the independent petroleum

nikitadnepr [17]

Answer:

To make it feasible it will need to operate 7 or more planes.

Explanation:

450,000 maintenance facility

useful life of 15 year

salvage value of 100,000

saving cost per plane:

third party cost - own facility cost = cost savings

35,000 - 25,000 = 10,000

present value of the salvage value: (present value of a lump sum)

$\frac{salvage }{(1 + rate)^{time} } = PV$

salvage $ 100,000

time 15 years

Minimum accepter rate of return: 0.12000

$\frac{100000}{(1 + 0.12)^{15} } = PV$

PV 18,269.6261

present worth of the facility:

450,000- 18,268.63 = 431,731.37

Now we determinate the PMT over a 15 years period to know the cost savings per year to justify the facility:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 431,731

time 15

rate 0.12

$431731.37 \div \frac{1-(1+0.12)^{-15} }{0.12} = C\\$

C $ 63,388.630

As each plane cost savings are 10,000

63,388.62 / 10,000 = 6.39

the company will need to operate 7 or more planes.

3 0

3 years ago

Tom's Textiles shipped the wrong material to a customer, who refused to accept the order. This is an example of a:-Sales revenue

Angelina_Jolie [31]

Answer:

Sales return

Explanation:

Sales return when a customer is not satisfied with a product, refuses to accept the order and expects to receive back the whole amount of money he paid for it.

Tom's Textiles are at wrong here as they shipped the wrong material to a customer. The customer is allowed not to accept the order and all the money he paid must be reimbursed to him. The company should apologize for the mistake in a pleasant manner, as mistakes happen everyday and can be corrected quickly and efficiently.

3 0

3 years ago

Match each situation with the method of government intervention used to rectify it.

Natali5045456 [20]

1:People have too much money, and there is a danger of inflation. - B contractionary fiscal policy

2:The GDP has fallen to an all-time low, and there is low demand for most goods. - D:expansionary fiscal policy

3:Few farmers produce cotton because profits are at the equilibrium price. - A:price floor

4:Prices of staple foods have shot up because of shortages after an earthquake. - C:price ceiling

5 0

2 years ago

Read 2 more answers

Definition: This is when an owner is fully responsible for the debts and losses of a company.

lorasvet [3.4K]

Answer:

is it a manager??

Explanation:

4 0

2 years ago