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3 years ago

Explain why we depreciate assets over their useful lives instead of just expensing them in the year they are acquired?

1 answer:

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We depreciate assets over their useful lives instead of just expending them in the year they were acquired because let's say, when we exhaust a 5 year asset in a year, the 1st year is understated because the whole expense of the asset has been fully utilized in just 1 year, while the remaining 4 years are overstated,

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Internal control systems are:________.

lakkis [162]

Answer: Internal control system are required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is traded on an exchange (a public company).

Explanation:

Internal controls are the procedures mechanisms and rules implemented by a business to ensure the integrity of its accounting and financial information, promote accountability, and also prevent fraud.

Besides complying with regulations and law and hindering employees from commiting fraud or stealing assets, internal controls can improve operational efficiency through the improvement in the timeliness and accuracy of financial reporting.

Internal controls are a vital business function for every company in the United States since the accounting scandals that occurred in the early 2000s. The Sarbanes Act of 2002 was to improve accuracy of corporate disclosures and protect investors from fraudulent activities.

4 0

3 years ago

Read 2 more answers

When total expenditures are greater than total production, __________ is produced than households want to buy, which leads to __

11111nata11111 [884]

Answer:

When total expenditures are greater than total production, less is produced than households want to buy, which leads to decrease in inventory, which signals firms that they have under-produced, which causes firms to increase production.

Explanation:

When total expenditures are greater than total production, then the business will have low production.
If the production is lower than the customer's demand then it will decrease in inventory.
If the production is less than the demand of the customer, then in order to fulfill the gap, we need to increase our production.

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4 years ago

When Brian explains to his supervisor that advertising communication may not lead to immediate behavioral response or purchase,

Andrej [43]

Answer: hierarchy of effects

Explanation:

The Hierarchy of Effects model which was created by Robert J Lavidge and Gary A Steiner in 1961 posits that advertisers should design adverts in such a way that the intended individuals go through 6 stages being;

a) Awareness - customer should be aware of the brand

b) Knowledge - ensure that positive knowledge about the brand is widespread

c) Liking - Prop up the emotional benefits of the brand to make people like it

d) Preference - Ensure that the points that make your brand different from other similar brands are well communicated so that the individual builds a preference

e) Conviction - the doubt in the individuals' mind must be removed here.

f) Purchase - most crucial stage. Here the product needs to be sold in a hassle free way to the consumer.

5 0

4 years ago

Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the mo

Galina-37 [17]

Answer:

Karvel would have applied more overhead to Work in Process than the actual amount of overhead cost for the year.

Option A is correct.

Explanation:lj;kxzx

Predetermined overhead rate = Estimated overhead cost/estimated machine hours.

Therefore, the overhead rate of Karvel Corporation = $300,000 /75,000 = $4.00 per hour.

Now, we need to apply the Predetermined overhead rate on the actual machine hours.

At 75,000 machine-hours, the amount that would have been applied = 75,000*4 = $300,000.

Over/under- applied cost = Actual overhead cost - applied overhead cost.

Actual overhead cost = $290,000.

Applied overhead cost = $300,000

Under- applied cost = $290,000 - $300,000 = -$10,000.

Thus, Karvel Corporation applied more overhead to Work in Process than the actual amount of overhead cost for the year.

5 0

4 years ago

Urban planner: When a city loses population due to migration, property taxes in that city tend to rise. This is because there ar

sineoko [7]

Answer: the correct answer is (A) If Stonebridge does not raise taxes on its residents to maintain its infrastructure, the city will become much less attractive to live in as that infrastructure decays.

Explanation:

Situation: When a city loses population due to migration, fewer residents remain to pay to maintain the city's infrastructure, so property taxes tend to rise. These property taxes drive even more residents away. The city of Stonebridge is starting to lose population, so Stonebridge should not raise property taxes.

Reasoning: What would weaken the idea that the city should refrain from raising property taxes? That the city would decay because it wouldn't have money to maintain the infrastructure so A is correct.

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3 years ago