Answer:
$523,644
Explanation:
The computation of the market value of this firm is shown below;
Asset at realizable value amount ($)
Building appraised value $1,300,000
Equipment current value $327,000
Inventory Market value ($270000 ÷ 2) $135,000
Accounts receivables ($155,200 × 97%) $150,544
Cash $11,100
Total assets gross available $1,923,644
(-) Owings -$1,400,000
The Market value of the firm $523,644
Answer:
Entries that were made on August 1 to record the cash received is :
a. Cash..........14,700
Sales Discount. 300
Accounts Receivable 15,000
Explanation:
When the Inventory items were sold the entries are :
Trade Receivables $23,500 (debit)
Sales Revenue $23,500 (credit)
When payment is received on August 1, the payment is made within the discount period and the customer is eligible for the 15% cash discount.Entries would be as follows :
Cash $14,700 (debit)
Discount allowed $300 (debit)
Trade Receivable $15,000 (credit)
Answer:
D. exports more than it imports
Explanation:
A favorable balance of payment is a term used in international trade to describe a situation where a country's exports exceed imports. A country will experience a positive balance of payment if its a net exporter. A favorable balance of payments is when there is a surplus in a country's balance of trade.
Exports are goods and services manufactured within the borders of a country and sold to foreigners. Imports are products bought from other countries. In calculating the balance of payment, net income from international assets is also considered.
Answer: (C) Revenue recognition principle
Explanation:
The revenue recognition is one of the type of principle that help[s in understanding the various types of accounts based guidelines that helps in identifying the particular condition in which the revenue is basically recognize.
The importance of third principle is that it helps in ensure the actual loss or the profit Margin that maintains the financial credibility.
According to the given question, the revenue recognition principle basically accepting the various types of accounting principle that helps in satisfying the performance obligations.
Therefore, Option (C) is correct answer.
Answer:
False
Explanation:
As for an individual, short term goal period does not exceed a time span of maximum 6 months.
More than that will always be considered as long term goal.
Buying a flat screen TV is short term but collecting money for that in term of 3 years is always long term as the period is more than 6 months.
Therefore, the above statement is false.
