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leonid [27]
3 years ago
15

Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Pensacola State Colle

ge. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael’s personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Consider the accounting principles and assumptions discussed in the chapter, and identify the principle or assumption that best matches the situation:a. Michael’s personal assets are not recorded on the Apartment Exchange’s balance sheet.b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000.c. The Apartment Exchange reports its nancial statements in U.S. dollars.d. Michael expects the Apartment Exchange to remain in operation for the foreseeable future.
Business
1 answer:
AnnyKZ [126]3 years ago
7 0

Answer:

a. Michael’s personal assets are not recorded on the Apartment Exchange’s balance sheet. ECONOMIC ENTITY PRINCIPLE, the owner's personal assets are not part of his business assets and therefore should be reported separately.

b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000. HISTORIC COST PRINCIPLE, assets must be recorded at their purchase price.

c. The Apartment Exchange reports its financial statements in U.S. dollars. MONETARY UNIT PRINCIPLE, businesses must record their transactions in a unit of currency (US dollar).

d. Michael expects the Apartment Exchange to remain in operation for the foreseeable future. GOING CONCERN PRINCIPLE, the business will remain in operation for the foreseeable future.

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d. quality.

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-Delivery area refers to the places in which the appliances can be delivered.

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According to this, the answer is that based on its customers, ABC should try to dominate the market in quality because its products meet the expectations of professional chefs and that should be market to focus on as the company can have an important advantage by providing exactly what they need.

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3 years ago
The restaurant sector continues to grow despite the hurting economy.<br><br> O True<br><br> O False
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True.

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5 0
2 years ago
What Are the Differences Between Depository and Non-Depository Institutions? The financial services industry in the United State
Burka [1]

Answer:

1. Accept deposits;make loan;deposits.

2. Commercial banks, savings banks, savings and loan associations (thrifts), and credit unions.

Explanation:

Depository institutions are required to accept deposits and make loans although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository institutions, in contrast, accept cash contributions from their customers, but the cash inflows are not called deposits instead, they're called shares or premiums.

Depository institutions include commercial banks, savings banks, savings and loan associations (thrifts), and credit unions.

Non-depository financial institutions include mortgage banks, pension funds, insurance companies, mutual fund, securities firms etc.

3 0
3 years ago
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marta [7]

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$74,250  

Explanation:

The computation of interest pay at the end of the first year is given below:-

Interest pay at the end of the first year = Borrowed Euro × Euro at the time of loan × Interest rate per year

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Therefore for computing the interest pay at the end of the first year we simply multiplied the borrowed euro, euro at the time of loan and interest rate per year.

3 0
3 years ago
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