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3 years ago

For accounting information to be relevant, the information should ______. (Select all that apply.)

Business

1 answer:

USPshnik [31]3 years ago

7 0

Answer:

A and B

Explanation:

The relevance or conformity is the concept that the information generated by the accounting system influences the decision maker to make a decision. The concept may include the content and / or timeliness of information that can influence decision making. In particular, the relevance of the information provided to users is thought to be faster. This impact can be a confirmation of a reader's previous decision (for example, investing in a company) or making a new decision (such as investing in a company). Here are some examples of how communication is used in accounting:

A company auditor decides to expedite the closing of the month so that it can publish its financial statements within three days instead of the old three-week standard. This increases the speed of receiving financial reports from various internal and external parties, and increases the relevance of the information they receive.

The Industrial Engineering Manager is considering installing a new, higher capacity machine in the manufacturing sector. If the sales department publishes a new forecast showing a decline in sales, the engineering manager may not need to buy such a high capacity machine.

One company is considering another company. If the acquired company discloses that it has not been pre-registered and is liable, it is due to the buyer's decision in relation to the purchase price, which the buyer will extend the purchase offer, and is willing to pay.

One company had a strong quarter; These are the decisions to provide creditors with improved results, or to increase or increase the amount of credit granted to the company.

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As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the re

k0ka [10]

The appropriate journal entry to record the transactions from the purchase through the end of the year, including any adjustment for the investment are:

1. Journal entries

1. Debit Investment in Midlin common shares $360,000

Credit Cash $360,000

(To record investment in Midlin common shares)

2. No journal entry required

3. Debit Cash $15,000

($300,000×$0.25×20%)

Credit Investment revenue $15,000

(To record dividend received)

4. Debit Fair value adjustment $15,000

Credit Net unrealized holding gains and losses- OCI $15,000

($375,000-$360,000)

(To record fair value adjustment)

2. Journal entries

1. Debit Investment in Midlin common shares $360,000

Credit Cash $360,000

(To record investment in Midlin common shares)

2. Debit Investment in Midlin common shares $27,000

Credit Investment revenue $27,000

($135,000×20%)

(To record investment revenue)

3. Debit Cash $15,000

($300,000×$0.25×20%)

Credit Investment revenue $15,000

(To record dividend received)

4. No journal entry required

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2 years ago

A new business owner is speaking with her marketing director about the possibility of creating a marketing plan for the business

Digiron [165]

Answer:

Businesses whether large or small are set up to make profits by satisfying customers' needs and a marketing plan helps achieve this goal.

Creating a marketing plan should therefore not depend on the size or age of the business.

Explanation:

Every business, whether large or small, has marketing goals and needs a marketing plan to help determine how it will use its available resources to best reach its customers.

With a marketing plan, a business can <em>identify its target market and competitors, determine how it wants to position its products to compete, and set marketing goals</em> that can be monitored and achieved.

Generally, <u>a marketing plan helps a business reduce costs and increase sales, thereby increasing profits. This is a major goal of organizations, whether large or small</u>.

4 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t

Umnica [9.8K]

Answer:

Revenues=$188,000

Less: Variable Costs=$57,000

Less: Rentals=$37,000

Earnings before depreciation and tax=$94,000

Less: Depreciation =$17,000

Earnings before tax=$77,000

Less: Tax40%=$30,800

Net Income=$46,200

a) Dollars in minus dollars out

Dollars in = Revenues = $188,000

Dollars out = Variable cost + Rentals + Tax = $57,000 + $37,000 + $30,800 = $124,800

Operating cash flow = $188,000 - $124,800 = $63,200

b) Adjusted accounting profits

Operating cash flow = Net income + Depreciation = $46,200 + $17,000 = $63,200

c) Add back depreciation tax shield

Operating cash flow = Earnings before depreciation and tax x (1 - tax rate) + Depreciation tax shield

or, Operating cash flow = $94,000 x (1 - 0.40) + $17,000 x 40% = $63,200

Yes, all the results are same.

7 0

4 years ago

Sdj, inc. , has net working capital of $1,120, current liabilities of $6,133, and inventory of $844. What is the current ratio?

IgorC [24]

NWC = 1,410 = Current Assets – Current Liabilities = CA - 5,810

=> CA = 1,410 + 5810 = 7,220

Current Ratio = Current Assets/Current Liabilities

= 7,220/ 5,810 = 1.24

Quick Ratio = (Current Assets – Inventory) / Current Liabilities

= (7,220 – 1,315)/ 5,810 = 1.02

Current ratio is 1.67

Quick ratio = 0.88

In general, an appropriate current ratio is one that is comparable to the industry norm or just a little bit higher. The likelihood of distress or default may be increased by a current ratio that is lower than the industry average.

In a similar vein, if a company's current ratio is significantly higher than that of its peer group, it suggests that management might not be making the most use of its resources.

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2 years ago

Imagine the use (or misuse) of data collected from consumers by a marketing research firm. One of the issues that might arise is

earnstyle [38]

Answer: Step 1(Consequentialist framework)

Explanation: Ethics is a system of accepted rules or sets of moral acts that guides how people in an organization or a community exist or interact,Ethics has also been called Moral phylosophy. Ethics has been classified into three different frameworks which includes Consequentialist Framework( a framework where the output or result can be traced to the input,like the case with the question)

The Duty Framework( where the person involved has to think about the duty involved and its Ethical obligation in a given time) and the Virtue Framework(this Framework believe we acquire virtue the different moral acts we do or practice).

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3 years ago