Lol whoever answers this first gets 20! have a great day!!!

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?

Rudiy27

Answer:

D. Limited Partnership

Explanation:

Sole proprietorship is business owned , run & managed by single owner. Partnership is a business owned , run & managed by small group of people - deciding to share its profits .

Entrepreneurs in these have Unlimited Liability on personal assets, in case business assets are insufficient to settle business liabilities .

Corporation is a separate legal entity, distinct from its huge group of owners , guided by a board of directors. In case of any claim / sue case : it is against corporate entity & not the people, so they don't have any unlimited liability risk on personal assets to fulfil company's claims .

5 0

3 years ago

7.The matching principle requires that: A. revenues earned and expenses incurred in generating those revenues should be reported

dem82 [27]

Answer:

A. revenues earned and expenses incurred in generating those revenues should be reported in the same income statement.

Explanation:

A matching principle is an accounting concept which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.

The matching principle indicates when costs are recognized as expenses on the income statement.

For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the matching principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.

Hence, matching principle requires that revenues earned and expenses incurred in generating those revenues should be reported in the same income statement.

Additionally, the matching principle helps business owners to calculate their taxes and profits or losses properly.

5 0

3 years ago

**Verifiability means that the accounting information:

Svetlanka [38]

Accounting information that has verifiability is one that D. must be capable of being checked for accuracy, completeness and reliability.

<h3>What is verifiability in accounting?</h3>

in accounting, data is considered to be verifiable if a third party can come up with the same information given the chance.

for this to happen, the data needs to be capable of being checked for completeness and reliability.

find out more on verifiability in accounting at brainly.com/question/17031030.

#spj1

7 0

2 years ago

On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100 brokerage commission. On Apri

Vaselesa [24]

Answer:

January 23rd

Dr Investment in Tolle 300,100

Cr Cash 300,100

(to record the acquired of 10,000 Tolle's shares at $30 each and a brokerage cost of $100)

April 12th

Dr Cash 5,000

Cr Dividend Revenue 5,000

(to record dividend revenue from 10,00 Tolle's shares at $0.5 each)

June 10th

Dr Cash 135,900

Cr Investment on Tolle 120,040

Cr Gain on investment disposal 15,860

(to record the sales of 4,000 Tolle's shares at $34 plus $110 commission fees incurred).

Explanation:

All the explanation is given at the end of each transaction. Further explanation as below:

Given there is no information mentioned whether the share acquired is fro 20% to above and the partial disposal of the investment comes quite near to the time of first acquire; we apply the Cost Method for accounting these transactions.

In the June 10th transaction, we have:

- The actual selling price per share = (Selling price x share sold - Brokerage commission) / share sold = ( 34 x 4,000 - 100) / 4,000 = $33.975;

- The cost of share sold per share = ( Purchasing price x share purchase - Brokerage commission)/ share purchased = ( 30 x 10,000 + 100) / 10,000 = $30.01

=> Cost of share recorded ( Cr Investment account) = 30.01 x 4,000 = 120,040;

=> Gain on investment disposal = ( 33.975 - 30.01) x 4,000 = 15,860.

=> Cash receipt = 4,000 x 34 - 100 = $135,900.

3 0

4 years ago

Flagon Inc., a bottle manufacturing company, pays its employees 50 cents for every bottle that is produced in addition to the pr

kow [346]

Answer:

D. Piecework

Explanation:

Piecework compensation is a situation where a worker is paid per unit of output he produce.

Piecework refers to a payment schedule in which an employee is paid a fixed rate for each unit of production produced. It is a payment common to temporary or ad-hoc staffs. The amount earned by a worker depends on the quantity of goods produced.

Piecework pay encourages employees to work more so they can earn more. It also helps a firm to increase output because workers will produce more units to increase their pay.

The disadvantage of piecework pay is that the quality of the product might decrease since workers focus more on quantity produced.

Piecework pay can be calculated by multiplying piece rate per unit by number of units produced.

That is,

Piecework Pay = piece rate per unit x number of units produced

8 0

4 years ago