Answer: False
Explanation:
When more than one alternative can be selected from those available, the alternatives are said to be mutually exclusive. In evaluating independent alternatives, each alternative is compared against the "Do Nothing" alternative.
For mutually exclusive alternatives, the do-nothing is a viable option when revenue alternatives are involved.
The answer is "then <span> assets increased during the year by $25,000".
</span><span>liabilities of Hayden travel decreased by = $50,000
</span><span>owners' equity increased by = $75,000
</span>assets increased during the year = $75,000 - $50,000
= $25,000
Answer:
The use of the allowance method of accounting for bad debts.
Explanation:
We use the allowance method to match the expected ad debt with the sales or account receivables which generates.
As sales of a givne month can be declared uncollectible after several month using a direct method we are putting the burden of the uncollectible in another accounting period while leaving the one which did that sale untouched.
The allowance makesthe expense in the same time period thus, it follows the recognition principle.
Answer:
$200 (a deduction)
Explanation:
The accounting standard for inventories IAS 2 requires that inventory be carried at the lower of cost or net realizable value. Inventory will initially be recognized at the cost ( which includes the cost of the item and other associated cost such as freight ). However, its carrying amount must be reviewed to ensure it is not higher than the realizable value.
Given that the selling price is now $15 which is lower than the cost of $16, it means that the amount that can be realized from the sale of a unit is $15.
= $16 - $15
= $1
As such, an adjustment in form of a reduction of the carrying amount of $1 per unit is required. The amount of the lower cost of market adjustment the company must make as a result of this decline in value
= $1 × 200 units
= $200 (a deduction)
