Okay. So Joan receives 25% commission on the profits of the cars she sells. She got $8,870 on the profit last month. To find the commission, let’s multiply the amount of profit by the percentage. 8,870 * 0.25 is 2,217.5. There. Joan earned $2,217.50 in commission last month.
Based on financial and accounting principles, the general message of the full disclosure principle is that "<u>the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one."</u>
This is because the full disclosure principle state that all information should be documented in a company or individual financial statements which are believed to affect a reader's knowledge of that specific financial statement.
This ensures that every party that needs to access the financial statements under concern should fully understand them without missing any form of information.
Otherwise, any missing link or information will be ruled in favor of the less favored party in a legal situation.
Hence, in this case, it is concluded that the correct answer is option D.
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Answer:
Adjusting Entries
Date Accounts titles and Explanation Debit Credit
1. Supplies expense $500
Supplies expense $500
2. Insurance expense $300
Prepaid Insurance $300
3. Depreciation expense $
70
Accumulated depreciation $70
- equipment
4. Unearned service revenue $500
Service revenue $500
5. Accounts receivable $200
Service revenue $200
6. Interest expense $90
Interest payable $90
7. Salaries and wages expense $1,700
Salaries and wages payable $1,700
Answer:
a. By evaluating cash flows.
Explanation:
In Economics, an asset can be defined as any resources of economic value or items of monetary value that is being owned by an individual, country or business organization to generate income and derive benefits from.
Generally, assets can be classified broadly into four (4) categories and these are; capital assets, fixed assets, intangible assets, and financial assets.
Financial managers tend to value all assets in the same terms by evaluating cash flows.
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three (3) main components of the cash flow; investing, operating and financing.
