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Nataly_w [17]
3 years ago
12

Lisa Smith decided to start her CPA practice as a professional corporation, Smith CPA, PC. The corporation purchased an office b

uilding for $35,000. The real estate agent said the building was worth $50,000 in the current market. The corporation recorded the building as a $50,000 asset because Lisa believes that is the real value of the building. Which of the following concepts or principles of accounting is being violated? Select one: A. economic entity assumption B. cost principle C. monetary unit assumption D. going concern assumption
Business
1 answer:
Over [174]3 years ago
4 0

Answer:

B. Historical cost principle

Explanation:

In accounting, historical cost principle indicates that a business or an organization must record and account for both assets and liabilities at their purchase or buying price. In points that during bookkeeping, while recording the worth of an assets, the purchase price used in buying it must be recorded. Here, Lisa bought the building for $35000 but recorded $50000 because she believes that to be the real value. By doing so, lisa has violated the historical cost principle concept.

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Rodrigo is in charge of employee recruitment and selection for a large national bank. During the selection process, Rodrigo cons
Ivenika [448]

Answer: c. Person-job fit

Explanation: Rodrigo is carrying out a person-job fit analysis which is the process of matching right people to right jobs based upon their capabilities and inherent motivational strengths. It includes compatibility based on employee needs and available jobs to meet those needs; and job demands and employee abilities to meet those demands. While person-job fit is important when hiring competent and capable employees, it requires thoroughly understanding the job and the person under consideration.

3 0
4 years ago
G To what extent do managers need to have experience in accounting and with financial statements?
mojhsa [17]

Answer:

The question seems to have missing parts which I could not find on the internet, however I have tried to answer the part available as below :

To a greater extent,  managers need to have experience in accounting and with financial statements to understand their Decision Implications on Profit and to communicate with the Public and Stakeholders well.

Explanation:

Experience with Accounting and with Financial Statements are very important in that understanding these, Managers would be well aware of their Decision Implications on the bottom line - Profit. The performance of every manager can be traced back to items  that where within their control and these are shown in financial statements. The financial statement is also a vital document when the Company is communicating to the Public or to other Stakeholders and as such Managers need to be aware of. Some Managers are Sole Traders who need to have experience with accounting and with financial statements among other skills.

However, Mangers are not expected to be good at everything and they may be hired for one specialty such as strategy or marketing. In that case more time must be devoted to leave up to their role and leave the details of Accounting and Financial Statements to those hired for that specialty.

In conclusion it is to a greater extent,  managers need to have experience in accounting and with financial statements to understand their Decision Implications on Profit and to communicate with the Public and Stakeholders well.

6 0
3 years ago
Carmela was promoted to a management position at work but was not fully prepared for the number of new responsibilities in the n
Sophie [7]

Answer:

EXPLAINING STRESSFUL EVENTS BY ATTRIBUTING THEM TO A TEMPORARY SITUATION.

Explanation:

Attribution theory deals with how the social perceiver uses information to arrive at causal explanations for events. It examines what information is gathered and how it is combined to form a causal judgment.

Explanatory style is the characteristic, habitual way individuals explain the causes of good and bad events they experience.

Stressful events can either be good or bad. People may attribute stressful events to factors that are either temporary or permanent and specific or universal.

Carmela's thought means she is explaining her stressful work (event) by attributing it to a temporary situation since she thinks she will get the hang of it in a few months.

Therefore, an example of the explanatory style is EXPLAINING STRESSFUL EVENTS BY ATTRIBUTING THEM TO TEMPORARY EVENTS.

4 0
3 years ago
List three conditions for perfect competition.Instructions: You may select more than one answer.1. There is only one firm that m
Jobisdone [24]

Answer:

There are no barriers to entry.

5. Both buyers and sellers are price takers

.7. Firms’ products are identical.

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopoly is when there's only one firm operating in an industry.

I hope my answer helps you

6 0
3 years ago
Read 2 more answers
Astro Co. sold 20,500 units of its only product and incurred a $67,750 loss (ignoring taxes) for the current year as shown here.
maksim [4K]

Answer:

Break even point in dollar sales = $1,050,000

Explanation:

Break Even Point in dollar sales = Fixed Cost/ Contribution margin percentage

Contribution margin percentage = (Contribution margin/ Sales) X 100

Here we have for the year 2017

Contribution margin = $194,750

Sales = $779,000

Contribution margin percentage = ($194,750/$779,000) X 100 = 25%

Break even point in dollar sales = Fixed Cost $262,500/25%

= $1,050,000

3 0
3 years ago
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