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4 years ago

Why is it permissible to violate generally accepted accounting principles when preparing reports used by company management?

Business

1 answer:

Trava [24]4 years ago

8 0

Answer:

Yes, it is permissible to violate generally accepted accounting principles when preparing reports used by company management.

Explanation:

GAAP stands for 'Generally Accepted Accounting Principles'. It is a group of standards which are agreed by policy boards and are the ways that are commonly accepted to record and report accounting information.

It majorly aims to improve the clarity and consistency of financial information.

When there is any other method which is more beneficial for the user for presentation of information, then it is permitted that GAAP can be violated for preparing reports used by company.

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Dagny taggart has just purchased a home and taken out a $400,000 mortgage. The mortgage has a 30minus−year term with monthly pa

Sophie [7]

First we have to calculate the monthly payment on the mortgage which is calculated as =PMT(rate,nper,pv) in excel

Monthly payment = PMT(0.054/12,30*12,400000) = $2,246.12

To calculate the amount of principal for the first three months, we construct the amortization table as shown below:

Month Payment Interest Principal Outstanding

0 400000

1 $2,246.12 1800 $446.12 $3,99,553.88

2 $2,246.12 1797.992446 $448.13 $3,99,105.75

3 $2,246.12 1795.975857 $450.15 $3,98,655.60

Total Principal $1,344.40

The total amount of principal that dagny will pay during the first three months of her mortgage is closest to: $1,344.40

7 0

3 years ago

northern city bank keeps no excess reserves. assume northern city bank receives a deposit of $50 million dollars. as a result of

SashulF [63]

The maximum possible change in the money supply is $250 million.

The change in required reserves when an amount of money is deposited in a bank is determined by the reserve requirement.

Reserve requirement = increase in required reserves / amount deposited

$10 million / $50 million = 0.20 = 20%

The change in money supply can be determined using this formula:

Amount deposited / reserve requirement

$50 million / 20%

$50 million / 0.2 = $250 million

For more information, please check: brainly.com/question/25757631

5 0

3 years ago

There are more than 20 stores on the same street that specialize in selling the same quality and brand of wheat products. An ind

Umnica [9.8K]

Answer:

Pure competition

Explanation:

Pure competition is a market structure in which many competitors sell many similar products. Due to high competition, market prices will fall. Pure competition is also called full competition. Other characteristics of pure competition.
There are many buyers and many sellers for market information
There are no entry and exit barriers in the market
Companies sell homogeneous products
Firms cannot affect market value. Companies are price takers.
Production units are identical and operate independently.

3 0

3 years ago

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the f

Alina [70]

Answer:

$21.44

Explanation:

Calculation for the cost per equivalent unit for materials for the month in the first processing department

First step

Units completed and transferred out $7,500

Ending inventory($800+$8,400-$7,500)*70% Ending inventory =1,700*70%

Ending inventory =$1,190

Equivalent units for Materials $8,690

($7,500+$1,190)

Total materials costs $186,300

Second step

Cost per equivalent unit for materials=Total materials costs÷ Equivalent units for Materials

Cost per Equivalent unit for Materials $186,300÷$8,690

Cost per Equivalent unit for Materials=$21.44

Therefore the cost per equivalent unit for materials for the month in the first processing department is closest to $21.44

8 0

4 years ago

Sally brings home $50,000 a year to help provide financial support to her family, comprised of her husband and two children. She

svp [43]

Answer:

$386,080

Explanation:

In order to find the Coverage of sally's investment in life insurance for 10year can be done by making 10-year table

Year Cashflow Discount factorI5%) Present Value

$ $ $

1 50,000 0.9524 47,620

2 50,000 0.9070 45,350

3 50,000 0.8638 43,190

4 50,000 0.8337 41,135

5 50,000 0.7835 39,175

6 50,000 0.7462 37,310

7 50,000 0.7107 35,535

8 50,000 0.6768 33,840

9 50,000 0.6446 32,230

10 50,000 0.6139 30,695

NPV = Sum of all present values

NPV = $386,080

3 0

3 years ago