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3 years ago

An emphasis is placed on proper income statement item recognition under what approach under US GAAP?

Business

1 answer:

Over [174]3 years ago

3 0

Answer:

Revenue /expense approach

Explanation:

As we know that the income statement recognized only the revenues and the expenses and if the revenue is more than the expenses so the company is earning profit else it would suffered loss

So for proper income statement, the item recognized under US GAAP should be placed in revenue and expense approach as it comes under the income statement and the same is to be considered

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A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean? A. Each

Sedaia [141]

Answer: B. Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit.

Explanation:

Allocative efficiency means that the point chosen on the production possibility frontier is socially preferred.

In a perfectly competitive market, allocative efficency is achieved at the point where price equals the marginal cost of production. At this price producer and consumer surplus is maximised.

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3 years ago

From the perspective of the parent corporation, contrast the tax consequences of a subsidiary liquidation under the general nonr

erik [133]

Answer:

Section 338 allows the corporation to purchase stock and retain the basis of assets. It also allows adjusting the basis for the assets. Under section 338 the, if the corporation sold its assets, the transactions related to sale will be subjected to double tax. Whereas, if the corporation cause liquidation for the target asset's and then undergo for a sale is subjected to single tax.

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3 years ago

Fido wants to buy a new car. He will need to get a car loan. Fido decides to wait for a few months until his credit history impr

Rom4ik [11]

your answer is: Fido's decision is sensible because the cost of the car loan should be less if his credit history improves.

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3 years ago

Read 2 more answers

The WeKnowThisStuff Company issued a $1,000 par value, 6% coupon, 8 year bond. The interest is paid semiannually and the market

Stella [2.4K]

Answer:

$1,032.01

Explanation:

Given:

Face value of bond (FV) = $1,000

Coupon rate = 6% annual rate or 6% / 2 = 3% semi-annual rate

Coupon payment (pmt) = 0.03 × $1,000

= $30

Rate = 5.5% annually or 5.5 / 2 = 2.75%

Time period (nper) = 8 × 2 = 16 periods

Current value of bond is present value of bond which can be computed using spreadsheet function =PV(rate,nper,pmt,FV)

So, present value of bond is $1,032.01.

PV is negative as it's cash outflow.

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3 years ago

Which of the following is most likely to be considered a profit center?

likoan [24]

Answer:

A. The grocery department of a Walmart Supercenter or Target Superstore

Explanation:

A profit center is a type of business where the business is expected to make into valuable contributions, a profit center can be treated as a separate business of the company.

The profits and losses for that center are calculated separately. Examples of profit centers include the store, sales organization, or consulting organization.

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3 years ago