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Vikki [24]
3 years ago
15

While generally accepted accounting principles do allow flexibility, standards of _________, ________, and ________ must always

prevail in the financial statements. subjectivity; integrity; validation objectivity; integrity; judgement recording; reporting; accounting quality; excellence; and judgement
Business
1 answer:
Stella [2.4K]3 years ago
5 0

Answer:

While generally accepted accounting principles do allow flexibility, standards of _objectivity_, _integrity_, and _judgement_ must always prevail in the financial statements

Explanation:

The concept of objectivity is the concept that an organisation's financial statements are based on solid evidence. The purpose behind this principle is to prohibit an entity's management and accounting department from generating financial statements based on their views and prejudices

Integrity is an important cornerstone of the accounting profession. Integrity requires accountants to be honest, candid and straightforward with the financial information provided by a client. Accountants should use confidential information to limit themselves to personal gain or advantage

professional judgment in deciding whether the content of business transactions differs from its nature, in assessing the appropriateness of disclosure, in determining the likely effect of upcoming events.

You might be interested in
Analyzing and Reporting Financial Statement Effects of Bond Transactions Winston Inc. reports financial statements each December
attashe74 [19]

Answer and Explanation:

The financial statement effects template to reflect the following events is shown below:-

Balance Sheet

Transaction Cash assets + Non Cash = Liabilities+Contributed                                                 assets                               capital Earned Capital

a.                      $400,000                           $400,000

b.                       -$18,000                                                

-$18,000

c.                      -$202,000                        -$202,000  

Income statement

Transaction     Revenue     -   Expense    =     Net income

b.                       $18,000            -$18,000

c.                                                  $2,000           -$2,000

8 0
3 years ago
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each
yawa3891 [41]

Answer:

(A) $110,000

(B) $44,000

(C) $440,000

(D) $176,000

Explanation:

Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock

Sub corporation pays out 40% of net income of dividend each year

(A) Parent's Co's share of Sub's Co's net income for the year is $110,000

(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000

(C) The total net income can be calculated as follows

= 110,000 ×100/25

= 11,000,000/25

= $440,000

(D) The total dividend for the year can be calculated as follows

= 440,000 ×40/100

= 440,000 × 0.4

= $176,000

5 0
3 years ago
A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salva
mina [271]

Answer:

8.13%

Explanation:

Annual return = [ (Total FV/Initial investment)^(1/n) ] -1

n = useful life of the project

Total Future Value = (22650*5) +5000

Total FV = $118,250

Initial investment = $80,000

Annual return = [ (118,250/80,000)^(1/5) ] -1

r = [ (1.478125^(1/5)] -1

r = 1.0813 - 1

r = 0.0813 or 8.13%

6 0
3 years ago
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of
gizmo_the_mogwai [7]

Answer:

$27.2

Explanation:

First we have to calculate the total estimated manufacturing overheads which shall be determined as follows:

Estimated total manufacturing overheads=Variable manufacturing overhead+ Fixed manufacturing overheads

Variable manufacturing overhead=Estimated labour hours*manufacturing overhead per labour hour

                                                        =75,000*$10.70=$802,500

Fixed manufacturing overheads=$1,237,500

Estimated total manufacturing overheads=$802,50+$1,237,500

                                                                    =$2,040,000

Now we will compute the predetermined overhead rate which shall be determined using the following formula:

Predetermined overhead rate=Estimated total manufacturing overheads/Estimated labour hours

Predetermined overhead rate=$2,040,000/75,000=$27.2

3 0
3 years ago
Steve purchases some land for $30,000. He maintains it, but makes no improvements to it. One year later he sells it for $32,000.
Neporo4naja [7]

Answer:1. The higher before tax real gain is for Steve for $2000 i.e (32,000- 30,000) while Stephanie makes $1800(6% of $30,000)

2. The higher after tax real gain is for Stephanie losing 35% of her income

which reduce her income to $1170 while Steve loss 50% of his income which reduce to $1000.

Explanation

The inflation rate is not considered in the calculation because it's constant for both parties.

4 0
3 years ago
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