All categories

3 years ago

Identify the basic assumption or broad accounting principle that was violated in each of the following situations.

Business

1 answer:

andrezito [222]3 years ago

6 0

Answer:

1) expense recognition principle: expenses are recognized when they are consumed.

2) historical cost principle: a company must record its assets, liabilities, and equity investments at their original costs.

3) economic entity principle: the company's transactions should be kept separate from those of its owners or upper management.

You might be interested in

you have the choice of two equally risk annuities, each paying $5,000 per year for 8 years. one is an annuity due and the othe

Juli2301 [7.4K]

You have the option of two equally risk annuity, each paying $5,000 per year for 8 years. The is an annuity due and the other is an ordinary annuity. If you are going to be receiving the annuity payments, the annuity due would you choose to maximize your wealth.

What is an Ordinary Annuity?

An ordinary annuity is a series of equal payment made at the end of consecutive periods over a fixed length of time. An standard annuity's payments can be paid as frequently as weekly, although in reality they are typically made monthly, quarterly, mid-annually, or yearly. An annuity due is the reverse of a Ordinary annuity in that payment are issued at the start of each period. Although they are connected, these two payments schedules differ from the financial instrument known as an annuity.

Learn more about Ordinary Annuity here:

brainly.com/question/14963095

#SPJ4

4 0

1 year ago

If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely o

Phoenix [80]

An increase in jobs and inflation.

8 0

3 years ago

Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: Total Company D

anzhelika [568]

Answer:

Explanation:

6 0

3 years ago

The key elements of a business plan can include _____.

Ulleksa [173]

Answer:

Executive summary

Explanation:

It provides information about the business's purpose.

8 0

3 years ago

Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washingto

boyakko [2]

Answer:

See the explanation below.

Explanation:

Note: Find attached the summary table.

Total annual dividend payable to cumulative preferred 2% stock = 25,000 * $80 * 2% = $40,000

For 20Y1

Dividend declared = $24,250

Total payable to cumulative preferred 2% stock = $24,250

Cumulative preferred stock per share = $24,250 / 25,000 = $0.97 per share

Total cumulative preferred carried forward = $40,000 - $24,250 = $15,750

Total dividend payable to common stock = $0

Common stock dividend per share = $0

For 20Y2

Dividend declared = $9,000

Total payable to cumulative preferred 2% stock = $9,000

Cumulative preferred stock per share = $9,000 / 25,000 = $0.36 per share

Total cumulative preferred carried forward = $40,000 - $9,000 + $15,750 = $46,750

Total dividend payable to common stock = $0

Common stock dividend per share = $0

For 20Y3

Dividend declared = $106,750

Total payable to cumulative preferred 2% stock = $40,000 + $46,750 = $86,750

Cumulative preferred stock per share = $86,750 / 25,000 = $3.47 per share

Total dividend payable to common stock = $106,750 - $86,750 = $20,000

Common stock dividend per share = $20,000 / 100,000 = $0.20 per share

For 20Y4

Dividend declared = $95,000

Total payable to cumulative preferred 2% stock = $40,000

Cumulative preferred stock per share = $40,000 / 25,000 = $1.60 per share

Total dividend payable to common stock = $95,000 - $40,000 = $55,000

Common stock dividend per share = $55,000 / 100,000 = $0.55 per share

For 20Y5

Dividend declared = $110,000

Total payable to cumulative preferred 2% stock = $40,000

Cumulative preferred stock per share = $40,000 / 25,000 = $1.60 per share

Total dividend payable to common stock = $110,000 - $40,000 = $70,000

Common stock dividend per share = $70,000 / 100,000 = $0.70 per share

For 20Y6

Dividend declared = $165,000

Total payable to cumulative preferred 2% stock = $40,000

Cumulative preferred stock per share = $40,000 / 25,000 = $1.60 per share

Total dividend payable to common stock = $165,000 - $40,000 = $125,000

Common stock dividend per share = $125,000 / 100,000 = $1.25 per share

Download xlsx

5 0

3 years ago