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lorasvet [3.4K]
4 years ago
7

Which assumption or principle requires that all information significant enough to affect decisions of reasonably informed users

should be reported in the financial statements? Going concern. Historical cost. Full disclosure. Matching.
Business
1 answer:
sladkih [1.3K]4 years ago
7 0

Answer:

The answer is: full disclosure principle

Explanation:

Full disclosure principle in accounting refers to the requirement that businesses are supposed to provide all material information pertaining to their operations to the stakeholders of the business so as to facilitate better decision-making frameworks when evaluating the business.

The going concern principle is based on the assumption that the business will not cease operating in the foreseeable future. The matching principle requires that the expenses incurred in carrying out an economic activity are recorded in the same period as the revenues earned from that activity. The historical cost principle requires assets or liabilities to be recorded at their acquisition value.

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"What is the payback period for a $20,000 project that is expected to return $6,000 for the first two years and $3,000 for years
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4.67 years.

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5 0
4 years ago
Read 2 more answers
Torino Company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10
ValentinkaMS [17]

Answer:

The answer is $4,300

Explanation:

Solution

We recall that:

Torino company has 1,200 shares of = $50 per value

The cumulative and nonparticipating preferred stock of = 6.0%

They also have 13,00 shares

Common stock outstanding = $10 per value

Total dividends = $3,500

Now,

The first year amount of dividend that was paid in the first year of working is  stated as follows:

6% * 1300 * 50 = $3900

The paid dividend = $3,500

The amount amount payable during the second year to the common stakeholders is

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Note: preferred shares are cumulative, for this the amount paid to the stakeholders was $4,300

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4 years ago
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