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3 years ago

Which of the following would cause a "Prior Period Adjustment" to be reported on the 2025 Statement of Retained Earnings?

Business

1 answer:

Fynjy0 [20]3 years ago

5 0

Answer:

Cause of a "Prior Period Adjustment in 2025 Statement of Retained Earnings:"

A. Failure to Accrue Revenue at 12/31/24, but not 12/31/21 Depreciation Overstatement.

Explanation:

A company's failure to accrue revenue in accordance with the accrual concept and revenue recognition principle means that there is a "Prior Period Error" which must be corrected retrospectively in the financial statements (Retained Earnings). Retrospective restatement involves the correction of the error arising from the recognition, measurement, and disclosure of amounts of elements of financial statements. The restatement is done as if a prior period error had never occurred.

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PA5.

daser333 [38]

Answer:

Using weighted average method

Statement of equivalent units

Material Conversion

Units Units

Units transferred out 19,000 19,000

Add: Closing work-in-progress 6,000 1,800

Average divisor  25,000  20,800

Computation of cost per unit

Material Conversion

$ $

Cost of beginning work-in-progress 10,000 19,000

Cost added 50,000 112,248

Total cost  60,000  131,248

Material cost per unit = $60,000

25,000 units

= $2.40 per unit

Conversion cost per unit = $131,248

20,800 units

= $6.31 per unit

Value of units transferred out

Material = 19,000 x $2.40 = $45,600

Conversion = 19,000 x $6.31 = $119,890

Value of closing work-in-progress

Material = 6,000 x $2.40 = $14,400

Conversion = 1,800 x $6.31 = 11,358

Explanation:

In this case, we need to prepare statement of equivalent units in order to ascertain the average divisor. The average divisor is the sum of units transferred out and closing work-in-progress. Then, we will obtain the total cost of material and conversion, which is the aggregate of cost of opening work-in-progress and cost of units added. We will also calculate the cost per unit, which is total cost of material and conversion divided by average divisor. Finally, the units transferred and ending work-in-progress will be valued at unit cost of material and conversion.

8 0

3 years ago

XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in len

prisoha [69]

Answer:

B. Escalator Clause

Explanation:

An escalation clause is a clause in a lease or contract that guarantees a change in the agreement price once a particular factor beyond control of either party affecting the value has been determined. An important example of this is a contract that adjusts for inflation.

4 0

3 years ago

A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______

Elena L [17]

Answer:

$1,700

Explanation:

Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.

It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.

3 0

3 years ago

Which strategy makes use of your prior knowledge to help you read and understand quickly?

Shtirlitz [24]

I think it's guessing from context? Hope I helped!

7 0

3 years ago

Read 2 more answers

When a company owner practices price discrimination, the marginal revenue of an extra unit sold.

Kamila [148]

When a business owner uses price discrimination, the marginal revenue curve and the market demand curve are in line, therefore the marginal revenue is the same as the product's price.

The additional money made by selling one more unit of output is known as marginal revenue. The law of diminishing returns eventually leads marginal revenue to start dropping as output level grows, even though it can stay constant at a certain level of output.

The incremental cost or profit made when producing the following item is referred to as marginal. While marginal cost is the additional expense for producing one extra unit, marginal product is the increased revenue.

To know more about marginal revenue

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5 0

1 year ago