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AVprozaik [17]
3 years ago
10

Which one of the following conditions is not a requirement for an item to be recorded as a liability on a company's balance shee

t?
a) It involves a probable future sacrifice of economic resources by the company.
b) It reduces the market value of the company.
c) It involves a probable future sacrifice to another entity.
d) It a present obligation, arising from a past transaction or event.
Business
1 answer:
Allushta [10]3 years ago
7 0

Answer:

c) It involves a probable future sacrifice to another entity.

Explanation:

A Liability is defined by the <em>Conceptual Framework</em> as Present Obligation of the entity as a result of past event, the settlement of which will result in the outflow of future economic benefits from the entity.

Additionally liabilities are meant to reduce the market value of the company.

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his information relates to Sunland Company for the year 2022. Retained earnings, January 1, 2022 $77,700 Advertising expense 2,0
Afina-wow [57]

Answer:

Explanation:

Preparation of the income statement for Sunland Company ending December 31, 2022 is presented below:

                                           Sunland Company

                                           Income statement  

Revenue  

Service revenue $67,280

Total revenues $67,280 (A)

Less: Expenses

Advertising expense $2,080

Rent expense $12,000

Utilities expense 2,900

Salaries and wages expense 34,800

Total expenses $57,780 (B)

Net income $15,500 (A- B)

Simply we deduct the total expenses from the total revenues so that the net income could arrive

7 0
3 years ago
A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and
marysya [2.9K]

Answer: Please see explanation for answer

Explanation:

Journal entry to record sale of bonds

Account titles                           Debit                       Credit

Cash                                     $50,000,000

Bonds Payable                                                      $50,000,000

4 0
3 years ago
A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obl
zhenek [66]

Answer:

1. True.

2. True.

3. True.

4. True.

Explanation:

1. True: A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations.

2. True: Land held for speculation is reported in the long-term investment section of the balance sheet because they are fixed assets.

3. True: Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

4. True: Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.

7 0
3 years ago
What is always true about trial balance reports? (You may select more than one answer. Single click the box with the question ma
Keith_Richards [23]

Answer:

The correct answers are letters "A", "C" and "D": All accounts with balances are included in the report; The report is prepared for a range of dates; The total of the debit column must equal the total of the credit column.

Explanation:

A Trial Balance is a worksheet detailing the debit and credit balances of all the accounts for the company. According to accounting theory, the sum of all debits will be the sum of all credits for a given period. Relevant accounting activity of previous periods can be included. Since the trial balance is a list of all accounts, it acts as a test of accuracy.

8 0
3 years ago
Severance pay plans grant employees weekly benefits in addition to state unemployment compensation. True
Yanka [14]

Answer:

False

Explanation:

In simple words, Severance pay can be understood as a salary and/or incentives given to an individual by a company after the job is over. In order to help an individual obtain a new job, severance arrangements can include additional rewards, such as life care and observer ship support.

Thus, the weekly benefits are not included in this and the above statement is incorrect.

4 0
3 years ago
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