All categories

3 years ago

Which of the following is not true of generally accepted accounting principles?

Business

1 answer:

andrey2020 [161]3 years ago

8 0

Answer:

(A) GAAP does not have substantial authoritative support.

Explanation:

Choices B to C are true about GAAP.

Now, Choice A is not true since GAAP also includes detailed procedures and practices that provide a standard and not only broad guidelines of general application and this will imply that GAAP has a substantial authoritative support.

Also it is called "Generally Accepted Accounting Principles" for this reason.

You might be interested in

The October 31 bank statement of White's Healthcare has just arrived from Stat Bank. To prepare the bank reconciliation, you gat

lesantik [10]

Answer:

Required 1 : Bank reconciliation

Bank Reconciliation Statement

Balance as per Bank Statement $5,170

Adjusted for error

Multi-State Freight Company $700

Balance as per adjusted Bank Statement $5,870

Add Lodgements not yet credited :

White treasurer`s deposit $290

Less Unpresented Cheques :

237 $90

288 $150

291 $580

294 $590

295 $10

296 $150 ($1,570)

Balance as per Cash Book $4,590

Required 2 : Journal entries

Journal 1.

Bank Service Charge $70 (debit)

Trade Receivables $540 (debit)

Bank $610 (credit)

Journal 2.

Bank $2,500 (debit)

Credit Transfer $ l,400 (credit)

Dividend Revenue $l,050 (credit)

Interest Revenue $50 (credit)

Explanation:

The first step to prepare a bank reconciliation is to update the cash book.

Cash Book (Bank Balances)

Debit :

Balance as per Cash Book $2,700

Credit Transfer $ l,400

Dividend Revenue $l,050

Interest Revenue $50

Totals $5,200

Credit :

Dishonored Cheques ($420 + $120) $540

Bank Service Charge $70

Adjusted Cash Book Balance $4,590

Totals $5,200

The Next step is to prepare a Bank Reconciliation Statement

Bank Reconciliation Statement

Balance as per Bank Statement $5,170

Adjusted for error

Multi-State Freight Company $700

Balance as per adjusted Bank Statement $5,870

Add Lodgements not yet credited :

White treasurer`s deposit $290

Less Unpresented Cheques :

237 $90

288 $150

291 $580

294 $590

295 $10

296 $150 ($1,570)

Balance as per Cash Book $4,590

Journal Entries to Correct the Cash Book :

Journal 1.

Bank Service Charge $70 (debit)

Trade Receivables $540 (debit)

Bank $610 (credit)

Journal 2.

Bank $2,500 (debit)

Credit Transfer $ l,400 (credit)

Dividend Revenue $l,050 (credit)

Interest Revenue $50 (credit)

8 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

Suppose that Boeing and Rolls-Royce Holdings are the sole producers of a particular turbo engine. The two firms currently charge

julsineya [31]

Answer:

The two firms will manipulate the market in unison, to maintain the same price, which guarantees the optimum benefit for both firms, as opposed to if one or both of them reduces its price.

Explanation:

A cartel is a group of independent market participants that collude with each other in order to improve their profits and dominate the market. Cartels are usually in the same line of business, and they form a type of alliance as competitors. Cartel use price fixing, bid rigging, and reductions in output, to dominate the market and to maximize their profit. They are usually frowned upon in a free market system.

In this case, if the the two firms Boeing and Rolls-Royce operates as a cartel, they will bend the market rules by fixing their prices, instead of letting market drivers like demand and supply to determine their selling price, they might also reduce their output so that they both have the same level of output, or do any other form of manipulation in unison to maintain the same price. This is because both companies will benefit equally if they maintain the same price, as opposed to if one or both of them reduces price.

3 0

3 years ago

Walton Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost.

castortr0y [4]

Explanation:

The computation of the contribution margin per unit is shown below:

Burt for that first we have to determine the variable expense per unit which is shown below:

Variable costs per unit = $330,000 ÷ 15,000 units

= $22

Now the contribution margin per unit is

= Selling price per unit - variable expense per unit

= $25 - $22

= $3

Therefore, the special order is accepted

And, the preparation of the contribution margin income statement is shown below:

Sales (4,000 clocks × $25) $100,000

Less: Variable cost (4,000 clocks × $22) ($88,000)

Contribution margin $12,000

4 0

4 years ago

Employed by an inner-city development council, Beth Maxwell works with a steering committee to guide members in identifying prio

Brrunno [24]

Answer:

Facilitator role

Explanation:

A facilitator is an individual who is in charge in helping a group of people to understand their various objectives and also to help to plan to achieve them without taking a specific stand in the discussion.

A facilitator makes sure that outcomes, actions and questions are properly taken down and actioned, and effectively handled afterwards.

A facilitator employs various skills, tools, exercises and natural abilities to keep a group discussion moving in the right direction.

7 0

3 years ago