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Ede4ka [16]
3 years ago
7

Identify which qualitative characteristic of accounting information is best described in each item below. (Do not use relevance

and faithful representation.)
(a) The annual reports of Best Buy Co. are audited by certified public accountants.
(b) Black & Decker and Cannondale Corporation both use the FIFO cost flow assumption.
(c) Starbucks Corporation has used straightline depreciation since it began operations.
(d) Motorola issues its quarterly reports immediately after each quarter ends.

(1) Comparability
(2) Verifiability
(3) Timeliness
(4) Comparability (consistency)
Business
1 answer:
Lilit [14]3 years ago
4 0

Answer:

Statement (a) = (2) Verifiability

Statement (b) = (1) Comparability

Statement (c) = (4) Comparability (Consistency)

Statement (d) = (3) Timeliness

Explanation:

As for the provided information we have,

Statement (a) = (2) Verifiability

This characteristic refers to the information verified and confirmed to be accurate.

Statement (b) = (1) Comparability

The characteristic of an information which provides the similarity and differences between the two statements is comparability.

As here both the organisations use same cost flow assumption, it makes the data comparable.

Statement (c) = (4) Comparability (Consistency)

There is a consistency, that means use of same policy from a long time, and not changing it.

Here, the company is using straight line depreciation since its incorporation, and thus it is consistent with its policies.

Statement (d) = (3) Timeliness

Timeliness as the name suggest refers to the preparation of statements within the time relevant for preparing such statements.

As the quarterly statements are to be prepared in the quarter end resulting in benefit to the users of such reports, it is a timely information.

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A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340
boyakko [2]

Answer:

The correct answer is:

excess of $15,800 (d.)

Explanation:

In order to calculate the cash excess or deficiency for March, we have to determine the net balance for the period from January, February and March, after deducting the total expenditures from the incomes as follows:

Cash Receipts (income)

January 1 balance = $   290,000

January                  = $ 1,061,200

February                = $ 1,182,400

March                     = $ 1,091,700

Total cash receipt = $3,625,300

Cash payments (expenditure)

January                  = $  984,500

February                = $ 1,210,000

March                     = $ 1,075,000

Total payments      = $ 3,269,500

Net cash available = total cash receipts - total cash payments

= 3,625,300 - 3,269,500 = $355,800

Note, we are told that the minimum cash requirement = $340,000

Therefore:

Cash excess (deficiency) = Net cash available - minimum cash requirement

= 355,800 - 340,000 = $15,800 (excess)

<em>excess because cash available is greater than the minimum cash requirement.</em>

5 0
2 years ago
Here's the revenue and expenses for the month. Calculate whether Mia had a profit or loss.
kherson [118]

Answer:

Loss

Explanation:

Because she started with 860.00 then ended with 300

4 0
2 years ago
After selecting a target market and a retail mix, the final element in a retail strategy is the identification of prospective wh
rusak2 [61]

Answer:

False

Explanation:

There are business that do not need wholesale distributors, as online commerce expands, the supply chains are shrinking, e.g. Xiaomi is a Chinese smartphone manufacturer that only sells its phones online, and it is the fourth largest cellphone manufacturer in the world.

There are 5 elements in developing a retail strategy:

  1. scope
  2. goals and objectives
  3. resource deployment
  4. sustainable competitive advantage
  5. synergy

3 0
3 years ago
Fey Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost informa
alekssr [168]

Answer:

a) Standard WIP      75,000 debit

            factory overhead       75,000 credit

b) applied to deluxe model 28 setups x $   400 = $ 11,200

c) total overhead to deluxe: 35,200

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

expected overhead:       120,000

total labor hours: 375 + 22 = 600

overhead rate: 120,000 / 600 = 200

applied to Standard model: 375 hours x $ 200 = 75,000

overhead cost for setups: $ 20,000

total setups (cost driver) 22  + 28

activity rate: $ 20,000 / 50 setups = $    400

applied to deluxe model 28 setups x $   400 = $ 11,200

overhead cost for component: $40,000

total components: 8 + 12 = 20

activity rate: 40,000 / 20= 2,000

applied to deluxe model: 12 x 2,000 = 24,000

<u>Overhead cost into deluxe model under ABC:</u>

setup overhead applied to deluxe model 28 setups x $   400 = $ 11,200

component overhead applied to deluxe model: 12 x 2,000 = 24,000

Total: 35,200

6 0
3 years ago
17-16. Do you think interns who feel they’ve had a negative or exploitive relationship with a company should file lawsuits? Why
katrin2010 [14]

Answer: The answer is provided below

Explanation:

An intern is a student or a trainee who works, sometimes without getting paid, so as too gain work experience or satisfy the requirements for a qualification.

Internship comes into legal agreement by signing an internship agreement. Such agreement is signed by the organization and the intern. The violation of intern contract is enforceable by law.

Companies usually have committee that evaluate issues that may disturb the employees or interns at their workplace. In a situation whereby the intern feels an issue cannot be resolved within the organization, the intern can go for lawsuits.

Company's actions such as discrimination at work, sexual harrasment are example of cases that may justify am intern going to the court. Even though many states have passed laws to protect interns in organizations, an intern can still file lawsuits in cases of severe misconducts.

6 0
3 years ago
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