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Zina [86]
3 years ago
12

Lawton Company records business transactions in dollars and disregards changes in the value of a dollar over time. Which of the

following accounting assumptions does this represent?
A) economic entity assumption
B) monetary unit assumption
C) going concern assumption
D) accounting period assumption
Business
1 answer:
GenaCL600 [577]3 years ago
8 0

Answer: Monetary unit assumption

Explanation: The monetary unit of assumption states that every transaction of the business can be expresses in relation to monetary units and these units will be stable over time. The key point in this assumption is that it assumes monetary units to be stable and dependable.

In the given case, Lawton records transactions in dollars and disregards changes in value of dollars over time. Hence, we can conclude that Lawton is following monetary unit assumption.

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NNADVOKAT [17]

Answer:

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3 years ago
Bramble corp. wants to sell a sufficient quantity of products to earn a profit of $200000. if the unit sales price is $18, unit
mote1985 [20]

To solve for units sold at an income of $200,000:

First, I would subtract the variable cost of $8 from the unit sales price of $18 dollars which gives you $10.


Unit profit = $10

Fixed costs = $200,000

How many units need to be sold to earn an income of $200,000?


40,000 units x $10 = $400,000 - $200,000 = $200,000


40,000 units need to be sold to earn an income of $200,000.

3 0
3 years ago
Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following
iren [92.7K]

Answer:

1.  73 %

2. 27 %

3. $60,000

4. Ways to increase projected operating income without increasing total sales revenue :

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

Where,

Contribution = Sales - Variable Costs

                     = $88,000 - $23,760

                     = $64,240

Then,

Contribution Margin Ratio = $64,240/ $88,000 × 100

                                           = 73 %

Variable Cost Ratio = Variable Cost / Sales × 100

                                = $23,760 / $88,000 × 100

                                = 27 %

Break-even sales revenue = Fixed Costs ÷  Contribution Margin Ratio

                                            = $43,800 ÷ 0.73

                                            = $60,000

<u>Ways to increase projected operating income without increasing total sales revenue :</u>

  1. Reduce the variable costs per unit
  2. Reduce fixed overheads
7 0
3 years ago
why did aig get bailed out while lehman brothers did not? group of answer choices it had a stronger balance sheet lehman brother
GarryVolchara [31]

Because all other big financial corporations would have failed due to the prospect of systemic risk, aig received bailout money while Lehman Brothers did not.

The process of raising money or capital for any form of spending is referred to as finance. It involves directing different sources of funding, such as credit, loans, and investment money, to the businesses that can use them most effectively. The definition of finances according to Finance Box is "The money that people, businesses, or national economies earn and spend." Risk is the potential for bad things to happen, to put it simply. Risk refers to uncertainty on how a certain action will affect or have implications for a human value (such as one's health, well-being, wealth, property, or the environment), frequently focused on unfavourable outcomes.

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3 0
1 year ago
Common stock​ value: Constant growth The common stock of Barr Labs​ Inc., trades for ​$120 per share. Investors expect the compa
BlackZzzverrR [31]

Answer:

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Explanation:

Using dividend growth model we have

P{_0} = \frac{D{_1}}{K{_e} - g}

Where P{_0} = Current market price = $120

D{_1} = Dividend to be paid at year end or next year = $1.37

K{_e} = Expected return on equity = 15.8%

g = Expected growth rate

Now putting values we have

$120 = \frac{1.37}{0.158 - g}

0.158 - g = \frac{1.37}{120} = 0.0114

0.158 - 0.0114 = g

0.1466 = g = 14.66%

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3 years ago
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