All categories

2 years ago

The concept of materiality:

Business

2 answers:

KonstantinChe [14]2 years ago

6 0

Answer:

The answer is b Justifies ignoring the matching principle in certain circumstances.

Explanation:

Doss [256]2 years ago

5 0

Answer:

The correct answer is letter "B": Justifies ignoring the matching principle in certain circumstances.

Explanation:

In Accounting, the materiality principle is in charge of the relevance of information and the size of the information recorded in the companies' books. According to this concept, there are some Generally Accepted Accounting Principles (GAAP) that can be omitted as long as the information transferred to the Financial Statements are not affected.

It is the responsibility of the accountant to determine what should and should not be included on the firm's general ledger, then. GAAP such as matching can be omitted thanks to the materiality principle.

You might be interested in

Holding all other things constant, when the price level rises, interest rates:

SashulF [63]

The interest rate will also increase and firms will want to borrow less for new plants and gear and households will want to borrow less for homebuilding. And in addtion to that interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

5 0

3 years ago

Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310. If the ta

I am Lyosha [343]

Answer:

Operating cash flow= $16,792.5

Explanation:

Giving the following information:

Masters, Inc., has sales of $37,900, costs of $15,000, depreciation expense of $2,400, and interest expense of $1,310.

To calculate the operating cash flow, we need to use the following structure:

Sales= 37,900

COGS= (15,000)

Gross profit= 22,900

Depreciation= (2,400)

Interest= (1,310)

EBT= 19,190

Tax= (19,190*0.25)= (4,797.5)

Depreciation= 2,400

Operating cash flow= 16,792.5

6 0

2 years ago

Suppose that TapDance, Inc.’s, capital structure features 75 percent equity, 25 percent debt, and that its before-tax cost of de

Rzqust [24]

Answer:

11.07%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

= (0.25 × 8%) × ( 1 - 34%) + (0.75 × 13%)

= 1.32% + 9.75%

= 11.07%

We simply multiply the weighatge with its capital structure so that the correct weightage cost of capital can come.

5 0

3 years ago

What nonprofit organization distributes knowledge related to health care for the purpose of improving health to governmental age

Fed [463]

Options:

a. Institute for Safe Medication Practices.

b. Institute of Medicine.

c. National Committee for Quality Assurance.

d.The Joint Commission.

Answer:

b. Institute of Medicine.

Explanation:

Interestingly, according to information found on its website, the The Institute of Medicine (IOM) is an independent, nonprofit organization that provides advice to decision makers and the public, which includes distributes information related to health care for the purpose of improving health to governmental agencies, the public, business, and healthcare professionals.

5 0

3 years ago

The internal rate of return is:

shepuryov [24]

Answer:

The correct answer is letter "A": the discount rate that makes the net present value of a project equal to the initial cash.

Explanation:

The Internal Return Rate, or IRR, is a central component of corporate finance capital budgeting. Companies use it to determine which discount rate will make the Present Value of the after tax cash flows equal to zero (0). Any project that returns an IRR greater than 0 ads has a value.

In the decision-making process, IRR is subordinated to Net Present Value because it is preferred an absolute dollar amount that is higher than a higher IRR.

5 0

2 years ago