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3 years ago

Which accounting concept requires that the value of economic data be recorded in dollars?

Business

1 answer:

defon3 years ago

5 0

Answer:

Unit of measure concept

Explanation:

In accounting, there is a standard convention that stipulates that all transactions must be consistently recorded using the same currency, in the case the dollars. This is what is known as the unit of measure concept.

In a case or cases where there are transactions that are carried out in currencies other than the USD, what is done is that there is a conversion between the values in the other currency and in the USD.

It is essential that there is a consistency in the unit of measurement as an absence in consistency would make it difficult for financial statements to be produced

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Using XXs for amounts, give the journal entry for each of the transactions, assuming perpetual inventory. (If no entry is requir

lawyer [7]

Answer:

Journal entries

Explanation:

1. Cash Dr XX

To Sales revenue XX

(Being the cash sales is recorded)

Since the cash is received so we debited the cash as it also increases the assets and the sales revenue would be credited as it an income for the company

2. Cost of goods sold XX

To Merchandise inventory XX

(Being the cost of goods sold is recorded)

While calculating the cost of inventory we debited the cost of goods sold and credited the merchandise inventory

1. Account receivable Dr XX

To Sales revenue XX

(Being the cash sales is recorded)

Since the sales is made on account so we debited the account receivable as it also increases the assets and the sales revenue would be credited as it an income for the company

2. Cost of goods sold XX

To Merchandise inventory XX

(Being the cost of goods sold is recorded)

While calculating the cost of inventory we debited the cost of goods sold and credited the merchandise inventory

3 0

3 years ago

Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. Soft

Sphinxa [80]

Answer:

D) Abundon

Explanation:

Based on the scenario being described within the question it can be said that the marketing intermediary in this chain is Abundon. This is because Abundon is acting the company that is connecting the manufacturer's (SoftStar and BlueHill) product to the customer, therefore acting as the go-between both of them. This is known as the middle-man or intermediary.

4 0

3 years ago

What is the irr of an investment that costs $18,500 and pays $5,250 a year for 5 years?

saveliy_v [14]

The Internal rate of return (IRR) of an investment is found to be 13%.

<h3>What is Internal rate of return (IRR)?</h3>

The internal rate of return (IRR) is a financial analysis metric used to estimate the profitability of possible investments.

In a discounted cash flow analysis, IRR is a discount rate that renders the net present value (NPV) among all cash flows equal to zero.
IRR calculations employ the same method as NPV calculations.
Keep in mind that the IRR is not the project's actual dollar value.
The annual return is what brings the NPV to zero.

Now, according to the question;

Total investment = $18,500.

Returns = $5,250/year

Time = 5 years

Use the formula for calculation of IRR value.

$18,500 = $5,250 {[1 - 1/(1 + IRR)5] / IRR}

Simplyfying,

IRR = 12.92%

Therefore, the internal rate of returns are calculated as 13% (approximately).

To know more about internal rate of return, here

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6 0

2 years ago

) Offensive strategic moves involve all of the following except 38) A) pursuing continuous product innovation to draw sales and

Nesterboy [21]

Explanation:

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8 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $240,000 a year. Variable costs will be $70,000, and rental costs for t

Sergeu [11.5K]

Answer:

1. Adjusted Accounting Profits

- This method gives cashflow by adjusting revenue for expenses.

Earnings before tax

= Revenue - variable cost - rent cost - depreciation

= 240,000 - 70,000 - 50,000 - 30,000

= $90,000

Earnings After tax

= 90,000 ( 1 - tax rate)

= 90,000 ( 1 - 30%)

= $63,000

Add back depreciation as it is a non-cash expense

Operating cashflow = 63,000 + 30,000

= $93,000

2. Cash inflow/cash outflow analysis

Cash outflow is removed from inflow.

= Cash inflow - outflow

= 240,000 - variable cost - rent cost - tax

= 240,000 - 70,000 - 50,000 - 27,000

= $93,000

Tax = Earnings before tax * 30%

= 90,000 * 30%

= $27,000

3. The depreciation tax shield approach.

The tax shield that depreciation affords is added to the earnings after tax.

= Revenue - variable cost - rent cost

= 240,000 - 70,000 - 50,000

= $120,000

After tax = 120,000 * ( 1 - 30%)

= $84,000

Depreciation tax shield = depreciation * tax

= 30,000 * 30%

= $9,000

Cashflow = 84,000 + 9,000

= $93,000

4. Are the above answers equal?

Yes they are. All give an operating cash-flow of $93,000.

4 0

4 years ago