All categories

3 years ago

Match the expense revenues with expenses recognition approaches with the most appropriate accounting event.

Business

1 answer:

Zigmanuir [339]3 years ago

4 0

Answer:

Cause-and-effect relationship - Cost of goods sold

With the Cause and effect relationship, costs are linked to the revenue that they were incurred for to create. Cost of goods would therefore be linked to revenue.

Specific time period - Monthly salary payments to an office employee

Costs are to be recognized in the same period of time they were incurred. The monthly salary is to be paid monthly because it is incurred monthly.

Without regard to related revenue in the period incurred - Advertising expenditures

The advertising costs will be incurred when spent and not when the benefits are accrued.

You might be interested in

You were asked to estimate the cost of capital for XYZ Inc. The firm is expected to have a target capital structure of 30% debt,

kap26 [50]

Answer:

8.30%

Explanation:

The weighted average cost of capital of the company is computed using the WACC formula below:

WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)

We=weight of common equity=50%

Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%

Wp=weight of preferred stock=20%

Kp=cost of preferred stock=6.00%

Wd=weight of debt=30%

Kd=after-tax cost of debt=4.50%

WACC=(50%*11.50%)+(20%*6.00%)+(30%*4.50%)

WACC=8.30%

3 0

3 years ago

Companies can depreciate equipment in which of the following ways?

finlep [7]

Answer: asset cost, salvage value, useful life, and obsolescence.

Explanation: Any method may be adopted by companies

7 0

2 years ago

Read 2 more answers

A state whose fiscal year ends June 30, 2019, had the following transactions and events. For each item, compute how much total e

inn [45]

Answer:

$3,750,000

Explanation:

The total amount of expense = current salaries +accrued salaries

The total amount of expense = $3,600,000+ $150,000

The total amount of expense= $3,750,000

The salaries are those expenses that are paid from the current financial resources. If the salaries are not being paid in the current year due to any reason it will be an accrued expense to the company and has to be paid in next year.

4 0

3 years ago

The process of identifying and documenting specific and provable flaws in the organization’s information asset environment is ca

True [87]

Answer:

True

Explanation:

VULNERABILITY ASSESSMENT can be said to mean the process or ways in which an organisation information system is been assess and evaluate for any risks, threat or anything that may cause harm and vulnerabilities in the organization’s information system or information asset environment in order to help improve the safeguards , review the security weaknesses thereby making it less harmful and less vulnerable when needed.

7 0

3 years ago

Damita finds an advertisement for a bookkeeper position at a small business. The ad mentions handling accounts payable and accou

andrey2020 [161]

Answer:

These items in the job description are all examples of

job analysis.

Explanation:

In making a job analysis, information about the specific job needs to be included. Job analysis also includes the tasks involved and the required level of knowledge and skills that the worker needs to perform the job. In the job analysis, the responsibilities attached to the job and the measurements for successful performance are also clearly indicated. It is more comprehensive than a job description.

6 0

3 years ago