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sammy [17]
3 years ago
12

Consider the following statements regarding Company A and Company B:The two companies have identical operating results but have

made different accounting method choices.Company B reported lower COGS than Company A this year. Prices rose throughout the year.Both companies took a PP&E write downs in 2016. Company B reversed the write down and wrote the assets back up this year.Which of the two companies most likely reports under US GAAP?A. A onlyB. B onlyC. A and BD. Neither A nor B
Business
1 answer:
Natalija [7]3 years ago
7 0

Answer:

A. A only

Explanation:

U.S. Generally Accepted Accounting Principles (GAAP) does not allow property, plant, and equipment to be written up or revalued. If the fair value of PP&E falls below the book value and the amount is material then a company must write down the asset to fair value.

Since under US GAAP, once PPE is written, it can not be reversed. as Company B is indicated to have reversed the write down while company A did not. It therefore means that Company A only is reporting under US GAAP.

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_____ power derives from a position of authority inside the organization and is sometimes referred to as formal authority.
julsineya [31]
The appropriate response is legitimate power. Legitimate power will be the power you get from your formal position or office held in the association's progressive system of an expert. For instance, the leader of a company has certain forces in view of the workplace he holds in the enterprise.
5 0
3 years ago
Former-ceo kalanick’s question of ""what kind of brand do we want to be?"" represents which stage of the strategic management pr
Orlov [11]

Answer:

Establish the mission and vision and values

Explanation:

When former CEO kalanick’s question of ""what kind of brand do we want to be?", it represents the Establishing the mission and vision and values stage of the strategic management process. Strategic management is the process which involves setting goals and objectives, the analyzing and evaluating the outside and internal environment by evaluating the existed strategies.

Following are the step of strategic management process:

1: Vision and objectives are set.

2: Gathering and analyzing of the information.

3: Strategy formulation in order to attain the set vision and objectives.

4: Implementation of the strategy.

5: Evaluation and Control.

Here in this case, what kind of brand we want to be, represents the setting of the vision, mission and objectives for the brand, putting it simply, setting the direction for the brand, where we want to be, how we want customers to see us.

8 0
3 years ago
A fixed amount of pay for working a week or a month is a(n) ___ .
laila [671]

Answer: it is called a salary

Explanation:

5 0
3 years ago
Read 2 more answers
In the fourth stage of rational decision making, managers will _____. evaluate the alternatives and select a solution implement
Ludmilka [50]

Answer:

The correct answer is: implement and evaluate the chosen solution.

Explanation:

Companies generally use different strategies to make decisions to obtain the best benefits. For example, companies often use the rational decision-making process to focus on analysis and logic, leaving subjectivity aside.

Through this method, different steps of the decision-making method are followed to achieve the objectives proposed objectively.

<em>For example, in the fourth step, the chosen solution must be implemented and evaluated, the managers are in charge of analyzing and executing the action plan</em>, in this way they evaluate each result obtained to know if the actions taken are the best and are reaching their goals.

<em>I hope this information can help you.</em>

6 0
3 years ago
Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000​-ton deposit. In addition to the
Zepler [3.9K]

Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr  Mining Asset   896,900

Cr       Bank                     896,900

(b) IAS 16 says that the costs incurred to make the asset ready for use must be capitalized as part of the asset. This means the license fee $1000 filing fee, License fee $2100 and $50,000 amount paid for geological survey must be capitalized. So the entry is as under:

Dr Mining asset (1k+2.1k+50k) $53,100

Cr                      Bank                       $53,100

(c) This assets must be depreciated on the basis of tons of minerals extracted which is 60 thousands tons in the first year.

Depreciation Expense = (60k tons / 500k tons)   * (Total capitalized cost)

=(60,000/500,000) * (896,900+53,100) = $108,000

The Double entry of Depreciation Expense would be as under:

Dr Depreciation Expense  $108,000

Cr                Accumulating Depreciation  $108,000

3 0
3 years ago
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