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Mkey [24]
3 years ago
5

Identify which basic principle of accounting is best described in each item below. (a) Norfolk Southern Corporation reports reve

nue in its income statement when the performance obligation is satisfied instead of when the cash is collected. select a principle (b) Yahoo! recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue. select a principle (c) Oracle Corporation reports information about pending lawsuits in the notes to its financial statements. select a principle (d) Gap, Inc. reports land on its balance sheet at the amount paid to acquire it, even though the estimated fair value is greater. select a principle
Business
1 answer:
Stels [109]3 years ago
7 0

Answer:

The answers are,

For A. It's the revenue recognition principle in which revenue is recognised when it is earned, now when the cash is realized.

For B. Its the matching concept in which all expenses related with earnings are debited against it to find the profit or loss.

For C. It's full disclosure principle in which all events in material nature has to be disclosed. We can say that going concern effects this as well, as if any event affect the continuity of an entity, it has to be disclosed as well.

For D. It's the historical cost principle in which you account the assets and expenses at the price you paid for them. When the value increases over time, you can reevaluate and adjust it.

Explanation:

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Brad's Diner is expanding and expects operating cash flows of $32,000 a year for 4 years as a result. This expansion requires $3
lawyer [7]

Answer: $57,101.73

Explanation:

First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.

Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴

= (32,000 * 3.0373) + 1,906.55

= ‭$99,101.73

NPV = Present value of inflows - Outflows

= ‭99,100.15‬ - (39,000 + 3,000)

= $57,101.73

5 0
2 years ago
Turnadot & Sons is a small wholesaler of decorative cast iron objects. The following events, related to a special customer o
Katena32 [7]

Answer:

Gross Margin = $6,000

Explanation:

Gross margin refers to the Sales price - Direct cost associated with the product.

Here, Sales Value = 200 outdoor planters for $50 each = $50 \times 200 = $10,000

Cost associated with this outdoor planters = Purchase cost as paid to supplier = $4,000

Thus, gross margin = $10,000 - $4,000 = $6,000

Note: Time period and dates provided for such sales and collection of amount or payment to supplier is of no relevance.

Final Answer

Gross Margin = $6,000

4 0
3 years ago
In the annual report, where would a financial statement reader find out if the company’s financial statements give a fair depict
katrin2010 [14]

Answer:

Auditors Report

Explanation:

In the Auditor's report, the auditor expresses his level of satisfaction that whether or not the financial statement presented show the true and fair picture of the organization. The external auditor is also involved in the investigation of errors and frauds in the financial statements.

8 0
3 years ago
precise Machinery is analyzing a proposed project that is expected to sell 1,450 units, +3 percent. The expected variable cost p
ss7ja [257]

Answer: C.$221.86

Explanation:

Contribution Margin is the difference between the sales price and the variable costs.

Best case scenario of Sales would mean it is the higher amount.

Best case scenario of costs would mean the lower amount.

Best case Sales

= 349 * ( 1 + 3%)

= $359.47

Best Case Variable Cost

= 139 * ( 1 - 1%)

= $137.61

Best Case Contribution Margin

= Best case Sales  - Best Case Variable Cost

= 359.47 - 137.61

= $221.86

8 0
3 years ago
What trick of trust describes why companies trying to sell you something will often use terms like 'limited edition' or 'limited
hoa [83]

The trust trick for making sales using terms like "limited edition" or putting countdowns of time and remaining items for an offer is called the scarcity technique.

Scarcity marketing can be understood as a way to activate psychological triggers to generate purchase desire in consumers through product shortages, as people tend to perceive limited quantities as more valuable.

This strategy to drive sales will be effective if it meets three criteria:

  1. It is useful
  2. It is transferable between people
  3. It has the potential to be possessed

Therefore, companies can gain significant advantages by implementing the scarcity technique, increasing sales and generating greater value for the consumer.

This strategy needs to be used sparingly so as not to create too much pressure on the consumer to make a purchase and not to generate an image of poor inventory management.

Find out more information about scarcity here:

brainly.com/question/20254934

8 0
2 years ago
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