Answer:
1. Going concern
2. Economic entity
3. Monetary unit
4. Periodicitys
Explanation:
1. Since Jumbo's Restaurant is planning to close, the assumption of continuity (going concern) is no more applicable. This should be disclosed. Instead asset was still recorded at historical price which is misleading.
2. Gorloks Tax Services is an economic entity, and the property and assets of owners are not considered to be for the business. In this case the boat Sam bought was wrongly reported as an asset of the company.
3. Claim Jumpers when reporting the 5 trucks purchased must include a monetary value for them. The assumption of monetary unit states that all items reported on the balance sheet must be expressed in monetary terms.
4. Cobbler's Etc violated the assumption of periodicity which states the financial position of the business must be declared in a particular accounting period. Accounting period can monthly, quarterly, biannually, and yearly. The business should choose and accounting period and ensure financial position is reported for each of them. In this case financial reporting is not consistent with reporting happening after 14 months and before that 18 months.
Answer:
The answer should be D, a ban of deceptive advertisements.
Explanation:
In the 90s the government cracked down on deceptive advertising more than ever and more laws on the matter were added. The only other option that was actually ever banned was A, none of the other choices were ever banned. The ban on tobacco happened in the 70s under Nixon, that makes D the only possible answer. Hope this helps! :)
Answer:
Expected return on equity is 11.33%
Explanation:
Using Weighted Average Cost Capital without tax formula, overall rate of return is given by the formula:
WACC=(Ke*E/V)+(Kd*D/V)
Kd is the cost of debt at 6%
Ke is the cost of equity at 12%
D/E=1/2 which means debt is 1 and equity is 2
D/V=debt/debt+equity=1/1+2=1/3
E/V=equity/debt+equity=2/1+2=2/3
WACC=(12%*2/3)+(6%*1/3)
WACC=10%
If the firm reduces debt-equity ratio to 1/3,1 is for debt 3 is for equity
D/V=debt/debt+equity=1/1+3=1/4
E/V=equity/debt+equity=3/1+3=3/4
WACC=10%
10%=(Ke*3/4)+(6%*1/4)
10%=(Ke*3/4)+1.5%
10%-1.5%=Ke*3/4
8.5%=Ke*3/4
8.5%=3Ke/4
8.5%*4=3 Ke
34%=3 Ke
Ke=34%/3
Ke=11.33%
Answer:
Part 1
<u>Cash Account</u>
$
<u>Debit :</u>
Receive cash from customers 15,000
Sale of Equipment 8,000
Bank Loan 4,000
Totals 27,000
<u>Credit :</u>
Pay cash for employee salaries 9,000
Rent 3,000
Utilities 1,000
Advertising 7,000
Ending Balance 7,000
Totals 27,000
Part 2
Ending Balance is $7,000
Explanation:
Only Cash related purchases and receipts are posted to Cash Account. Thus ignore non-cash related transactions.
The Cash Account : Receipts are posted at the Debit side of this Account and Payments at the Credit Side.
The Balance : After determining the Totals of the Debit and Credit, the shortfall of any of that side represents the Balance.
Idk I can’t see the choices sorry which I could help
