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gregori [183]
3 years ago
15

Hahn Co. prepared financial statements on the cash basis of accounting. The cash basis was modified so that an accrual of income

taxes was reported. Are these financial statements in accordance with the modified cash basis of accounting
A. Yes.
B. No, because the modifications are illogical.
C. No, because there is no substantial support for recording income taxes.
D. No, because the modifications result in financial statements equivalent to those prepared under the accrual basis of accounting.
Business
1 answer:
jeyben [28]3 years ago
8 0

Answer: the answer is A. Yes.

Explanation:

Under a strict cash basis of accounting, revenues and expenses are recorded only when cash is received or paid. Under a modified cash basis of accounting, certain accruals and/or deferrals are recorded for financial-statement purposes.  

The most common modifications are the capitalization and amortization of long-lived assets and the accrual for income taxes (recognition of income tax expense and related liability).

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You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years
Radda [10]

Answer:

21%

Explanation:

Given that,

Cost of share = $21.70

Expect to pay dividend in year 1 = $1.00

Expect to pay dividend in year 2 = $1.16

Expect to pay dividend in year 3 = $1.3456

Expected selling price of share at the end of year 3 = $28.15

Growth rate in Dividends:

= [(Dividend in Year 2 - Dividend in Year 1) ÷ Dividend in Year 1] × 100

= [($1.16 - $1.00) ÷ $1.00] × 100

= 0.16 × 100

= 16%

Expected dividend yield :

= (Dividend in year 1 ÷ Cost of Share ) × 100

= (1.00 ÷ $21.70) × 100

= 0.05 × 100

= 5%

Stock's expected total rate of return:

=  Expected Dividend Yield + Growth rate in Dividends

= 5% + 16%

= 21%

8 0
3 years ago
Holding cash simply as a financial reserve is referred to as the ____ motive.
mel-nik [20]
<span>Holding cash simply as a financial reserve is referred to as the "speculative" motive.

</span>Speculative motive refers to a strategy that is utilized by financial specialists/merchants to hold money to make the best utilization of any speculation opportunity that emerges later on. Keeping all cash contributed doesn't appear to be appealing constantly. Keeping up a decent lot of liquidity in one's portfolio is one of the best needs for n investor.
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7 0
3 years ago
Why is it increasing most important for a cio or it executive who oversees geographically distributed enterprise networks to be
PtichkaEL [24]
Desire hole should exist between the IT and IT officials suit. CIO or IT officials need to drive an examination and re-designing of existing business forms, likewise they have to distinguish and abuse the venture's information assets. The essential errand of CIO and IT official is distinguished and building up the capacity of recently accessible instruments. In current associations, CIO must be master in useful business with the specialized abilities. Simply having specialized aptitudes are insufficient in the present IT world.
6 0
3 years ago
Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each ye
rusak2 [61]

Answer:

$46,900,000

Explanation:

Calculation for the erosion cost of adding the mid-range camper

Erosion cost = [(1,100 - 850) × $140,000] + [(2,200 -2,000) × $59,500]

Erosion cost =(250×$140,000)+(200×$59,500)

Erosion cost =$35,000,000+$11,900,000

Erosion cost = $46,900,000

Therefore the erosion cost of adding the mid-range camper will be $46,900,000

5 0
3 years ago
A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $3,979. After insta
Anvisha [2.4K]

Answer:

$198.95

Explanation:

Calculation for How much must the homeowner save on water heating costs every year if this is to be a sound investment

Using this formula

Saving =Cost *Interest rate

Let plug in the formula

Savings=3,979*5%

Savings=$198.95

Therefore How much must the homeowner save on water heating costs every year if this is to be a sound investment is $198.95

4 0
2 years ago
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