Answer:
Annual amortization= $62,291.67
Explanation:
Giving the following information:
Purchase price= $897,000
Smitty plans to reproduce 1.8 million posters of the artwork for 12 years.
To calculate the amortization, we need to use the following formula:
Annual amortization= (original cost/total estimated production)*production for the year
Annual amortization= (897,000/1,800,000)*125,000
Annual amortization= $62,291.67
Answer:
The options for this question are:
a. dominance
b. synergy
c. anarchy
d. compromise
The correct answer is b. synergy.
Explanation:
usiness synergy is an interesting concept if we use it in the business world, since we find the possibility of growth and improvement. Remember! The whole is more than the sum of its parts and achieves the best business strategy.
In an altruistic way it is also possible to obtain a benefit or even establish a new professional relationship in order to obtain more work and promotion that otherwise would not have been obtained.
Yeah b is a he correct answers
Answer:
<h2>
W Smith, a sole trader</h2>
Identification and Explanation of Highlighted Accounting Concepts and Treatment in the Final Accounts:
1. Economic Entity: The business (economic entity) is separate from the individual (W. Smith). Accounts are kept to ensure this separation of ownership from the business. This withdrawal is treated as Drawings, a reduction of capital (owner's equity) in the balance Sheet.
2. Consistency concept: This concept requires that an accounting estimate or principle is consistently applied. However, if there is a change in an accounting estimate, the effect of the change needs to be disclosed in the final accounts.
3. Going concern concept: A business is assumed to continue indefinitely in life. Therefore, assets and liabilities are stated at their cost or fair values. Where there is a contrary view, this must be disclosed and accounts be kept to reflect the revised view. Then, assets and liabilities will reflect market or disposal values.
4. Materiality concept: This concept requires that values in accounts be material. Though, materiality is a matter of judgement, a threshold can be established based on the value of the individual item to the value of the business. Will its disclosure or not affect decisions of a knowledgeable investor or analyst, is a consideration under the materiality concept. The office stationery can be expensed in the income statement if the amount involved is not material, even though, they will continue to be used in the business for more than a year. This somehow contradicts the concept of the matching principle.
5. Accrual Concept: The concept states that "Revenue is recognized when earned, and expenses are recognized when assets are consumed," and not when cash is received or paid. This unpaid electricity bill for £900 must be accrued in the income statement as an expense and treated as a liability in the balance sheet in line with the accrual concept.
Explanation:
These are the basic accounting concepts:
1. Accruals concept
2. Conservatism concept
3. Consistency concept
4. Economic entity concept
5. Going concern concept
6. Matching concept
7. Materiality concept