Answer: incorrect; This is because the common shareholders are typically treated as being residual investors.
Explanation:
From the question, we are informed that if Cute Camel ever goes bankrupt, its common stockholders will be paid off first, then its debtholders and preferred stockholders.
This above scenario is untrue. It should be noted that common shareholders are typically treated as being residual investors and therefore won't be paid off first.
Answer:
The creation of the Government Accounting Standard Body (GASB) involved many institutions. It was not just an agreement between accounting federations. The institutions that agreed the creation and standards of GASB are:
- Financial Accounting Foundation
- American Institute of Certified Public Accountants
- Government Finance Officers Association
- National Association of State Auditors, Comptrollers and Treasurers
- seven organizations representing state and local government officials.
Answer:
The answer is: TRUE
Explanation:
The inflation rate can be calculated using both the consumer price index (CPI) and the GDP deflator rate. But the CPI is used more frequently since it shows how the prices for consumer goods and services change.
The GDP deflator = (nominal GDP / real GDP) x 100
you can calculate inflation rate between years 1 and 2 using the following formula:
= [(GDP deflator year 2 - GDP deflator year 1) / GDP deflator year 1] x 100
Answer:
less than the units started during the period
Explanation:
The computation of the number of equivalent units of conversion cost would be
units completed during the year 100%
ending work in process 70%
As it can be seen that it is lower than the units that started during the period
Therefore the correct option is c
Hence, all the other options are incorrect
Answer: BruceCo would have to sell 220 backpacks
Explanation: The projection of a $10,000 profit can be calculated properly by the equation;
Revenue - Cost = Profit
There is a one-time set up charge of 1000 and this is a fixed cost (as it does not change regardless of how many units they eventually sell). Also they would be spending $30 to buy each unit and still spend $20 to customize each. So each unit would cost $50 to acquire. If they plan on selling each unit at the rate of $100, then the total revenue would be 100 times X (where X is the number of units sold). Therefore the profit can be better projected by the equation;
Revenue - Cost = Profit
100X - (50X + 1000) = 10000
100X -50X - 1000 = 10000
50X = 10000 + 1000
50X = 11000
Divide both sides of the equation by 50
X = 220
Therefore, BruceCo must sell 220 units (at least) in order to meet a $10,000 profit projection
