Answer:
Oikonomos, latinized oeconomus or œconomus, was an Ancient Greek word meaning 'household manager. Hope this helps :)
Explanation:
Answer:
the residual income for the division is $46280
Explanation:
given data
operating income = $62,240
assets = $228,000
return on assets = 7%
to find out
What is the residual income for the division
solution
we get Residual income for the division that is express as
Residual Income = Income from operations - ( Minimum required return × Operating Assets) .......................1
put here value we get
Residual Income = $62,240 - ( 7% × $228,000 )
Residual Income = $62,240 - $15960
Residual Income = $46280
So the residual income for the division is $46280
Answer:
The answers are,
Items not easily quantified in dollar terms are not reported in the financial statements.
Monetary Unit Assumption
Accounting information must be complete, neutral, and free from error.
Faithful representation
Personal transactions are not mixed with the company's transactions.
Entity Assumption
The cost to provide information should be weighed against the benefit that users will gain from having the information available.
Cost constraint
A company's use of the same accounting principles from year to year.
Consistency
Assets are recorded and reported at original purchase price.
Historical Cost
Accounting information should help users predict future events, and should confirm or correct prior expectations.
Relevance
The life of a business can be divided into artificial segments of time.
Periodicity assumption
The reporting of all information that would make a difference to financial statement users.
Full Disclosure principle
The judgment concerning whether an item's size makes it likely to influence a decision-maker.
Materiality
10. Assumes a business will remain in operation for the foreseeable future.
Going concern
12. Different companies use the same accounting principles
Comparability
Explanation:
The Profit and Loss Statement.
This shows profits and losses over a set period of time.
