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4 years ago

Identify the accounting concept or principle that gives the most direction on how to account for each of the following

Business

1 answer:

inysia [295]4 years ago

3 0

Answer:

A) Expense recognition principle: expenses are recorded in the accounting periods at which they are consumed.

B) Time period principle: companies should report their operations over a standard period of time.

C) Revenue recognition principle: revenue should only be recognized when the company has substantially completed the earnings process. In this case the surgeon has completed the earning process, i.e. the surgery, so he/she should record the revenue.

D) Revenue recognition principle: revenue should only be recognized when the company has substantially completed the earnings process. construction companies use two methods to record revenue: percentage of completion (PC) method and completed contract (CC) method.

E) Expense recognition principle: expenses are recorded in the accounting periods at which they are consumed. The expenses has to be recorded this year.

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Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an in

grandymaker [24]

Answer:

Assets understated by $660,000, liabilities understated by $198,000, and shareholders' equity understated by $462,000

Explanation:

Calculation to determine the effect of this error on Berkshire's December 31, 2020 balance sheet

BERKSHIRE'S December 31, 2020 balance sheet

Assets=$660,000 Understated

Liabilities=$198,000 Understated

Shareholders' equity = $462,000 Understated

($660,000-$198,000)

Therefore the effect of this error on Berkshire's December 31, 2020 balance sheet will be:

Assets understated by $660,000, Liabilities understated by $198,000, and Shareholders' equity understated by $462,000

7 0

3 years ago

Manistee Corporation reported taxable income of $1,200,000 this year and paid federal income taxes of $408,000. Not included in

lidiya [134]

Answer:

$737,000

Explanation:

The computation of the current earnings and profits this year is shown below:

= Taxable income - federal income tax paid - disallowed entertainment expenses + tax-exempt interest - net capital loss

= $1,200,000 - $408,000 - $25,000 + $20,000 - $50,000

= $737,000

Since we add the exempted interest and deduct all other expenses, losses, and taxes to the taxable income so that accurate value can come

7 0

3 years ago

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effe

Aliun [14]

Answer:

Explanation:

All the actions detailed are traits of a public power that respect the free market as a system that allocates resources as efficiently as possible. In this case, the public system works for the mechanism of prices functions based on private decisions and firms can rely upon that none public disturbance arises in the future. The other 3 options used to occur when public institutions intervene in the free market.

3 0

3 years ago

Select all that apply On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is

Mariana [72]

Answer:

Rent expense of $2,000

Prepaid rent of $22,000

Explanation:

Since we were told that On November 1,2019 Movers Inc., paid the amount of $24,000 for a 2 years' rent which will start or begin on November 1 which means Movers' year-end financial statements as of December 31,2019 will show:

Rent expense of $2,000

Prepaid rent of $22,000

The rent expense of $2,000 is calculated as

(1÷12*$24,000)=$2,000

The prepaid rent of $22,000 is calculated as

$24,000-$2,000

$22,000

8 0

3 years ago

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to.

Ann [662]

The manufacturing overhead costs assigned to production in a process cost system are debited to sales thereof.

Expenses have a debit balance. Manufacturing overhead costs are incurred when expenses are actually happen for the allocation of the asset ,work in progress etc.

Erstwhile the process cost system is the cost of total production incurred at the time of manufacturing for each unit of the product .

To learn more about overhead costs here,

brainly.com/question/13384595

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3 0

2 years ago