Answer:
The correct answer is letter "C": Justifies ignoring the matching principle or the realization principle in certain circumstances.
Explanation:
The materiality accounting principle states that some of the Generally Accepted Accounting Principles can be omitted in the entry of an item while record-keeping a company's transactions only in the case the entry does not have any influence on the Financial Statements. Those principles could imply matching or realization principles.
Answer: The higher the risk, the higher the return.
Returns from an investment refers to the gains or losses over a specified period, and is quoted as percentage.
Risk refers to the possibility or the chance that the actual return that is earned is greater than or less than the return expected by the investor. Thus, uncertainty is another name for risk.
If the returns from an investment are certain, the risk involved is low. When risk is low, the returns are also low. For e.g. the return from a T-bill is low because the risk of default is zero, since the government can print money to fund its debt.
The higher the level of risk involved, the greater the potential for a higher return.
Answer:
Calculation of budgeted Purchase for raw materials during April Month
Budgeted Production 120,000 units
Raw material Production required 360,000 ( 120,000 * 360,000)
Desired inventory for next month production
39,000 pounds (10% * 130,000 * 3 pounds)
Less: beginning inventory (36,000) pounds
budgeted purchases 363,000 pounds
<span>Oswego would debit accounts receivable with the amount of 46,000 and credit sales, also 46,000 for the period April 12. No terms have been inputted yet because we are using the gross method (meaning gross sales amount). So if there are terms given, like discounts after 15 or 30 days, it will only apply when the day of the discount comes. </span>
