Answer:
$220 million
Explanation:
Stealth bank total value of liabilities will be:
Reserves $15 million
Government bonds purchased $75 million
Market value (loan) $130 million
Value of bank liabilities $220 million
<span>Cross-sell is the practice of selling or suggesting related or complementary products to a prospect or customer. Cross selling is one of the easiest and most effective methods of marketing.</span>
Answer:
Net operating income= 565,000
Explanation:
Giving the following information:
Krazy Kayaks sells its entry-level kayaks for $750 each. Its variable cost is $500 per kayak. Fixed costs are $25,000 per month for volumes up to 1,100 kayaks. Above 1,100 kayaks, monthly fixed costs are $60,000.
Sales= 2,500*750= 1,875,000
COGS= (500*2,500)= (1,250,000)
Gross profit= 625,000
Fixed costs= (60,000)
Net operating income= 565,000
Answer:
a prior period adjustment
Explanation:
A prior period adjustment -
It is the correction of the accounting error which took place in the past and was written in the prior year of financial statement , net of the income taxes , is known as a prior period adjustment .
It is the method to fix the previous problem of past during the reporting .
hence , the correct term fro the given statement is a prior period adjustment .
Answer:
The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.
Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).
The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.
Explanation:
In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.
Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.
- When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
- US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
- US GAAP recognizes non-monetary exchanges while IFRS doesn't.
- IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
- There are also other minor differences regarding depreciation, disposals and impairment rules.
Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).
