Answer:
<em>a. Historical Cost Principle
</em>
Explanation:
The principle of historical cost notes <em>that firms must report and account for most assets and liabilities at their acquisition or purchase price.</em>
In certain terms, the companies need to report an asset for the amount paid for the asset on their balance sheet.
The cost or price of the product is then never adjusted for business or economy fluctuations and adjustments due to inflation.
Martin Corp. however combined both properties and adjusted them for inflation. They should have recorded them separately and never adjusted for business or economy fluctuations
In the preparation of a bank reconciliation statement, the Obrien Company should make a deduction of $270 from the cash balance.
<h3>What is bank reconciliation?</h3>
The rectification of errors in the bank accounts and entries is done via bank reconciliation. In the above case, bank reconciliation is required for rectification of entry errors in the following way,
- There is no need for rectification in bank balance, as the deduction in the bank balance is error-free;
- Cash balance showed an erroneous entry of $9585, instead of $9855;
- The difference between the correct entry and erroneous entry of $(9855-9585)=$270 shall be made in the cash balance of the books.
Hence, the significance of bank reconciliation to be done by the O'brien Company is given as above.
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Answer:
wrap-around loan
Explanation:
Based on the scenario being described within the question it can be said that the type of loan being described is known as a wrap-around loan. This is a type of loan in which involves the seller's mortgage on the home as well as an additional incremental value that the sums up to become the total purchasing price that the buyer will have to pay the seller over an period of time. Such as is described by the loan that Bill has taken.
Answer:
The correct answer is "Payback period, internat rate of return and net present value".
Explanation:
Which methods of evaluating a capital investment project use cash flows as a measurement basis?
Payback period, internat rate of return and net present value
The payback period: is used to determine how much asset is back after the initial saving; The internal rate of return: is used to measure potential profit from an investment; The net present value: is used to determine the worth of all the company's assets
