Lin most likely a victim of fraud. Fraud is the intentional taking something from another individual for personal or financial gain which would make the other party at disadvantage. Committing fraud is a criminal offense and the victim could make legal actions to chase the criminal.
Answer:
$9120
Explanation:
Using sum of years digit,
5+4+3+2+1=15
5/15*(72000-3600)=22800 for first year
4/15*68400 = 18240 for second year
Total depreciation before change of accounting policy = 22800+18240=41040
Net value of asset at start of 2018 = 68400-41040= 27360
Straight line depreciation for 2018 = 27360/3 = 9120
Answer:
Most changes in accounting principles are only reported in current periods when the principle change takes place.
Explanation:
Accounting principle can be defined as a general guideline to be followed by accountants or financial institutions when they record and report their financial transactions.
A change in an accounting principle involves a change in an accounting method used.
For instance, an accountant switching between First In, First Out (FIFO) to Last In, First Out (LIFO) method of inventory valuation or by using another depreciation method.
Additionally, an accounting principle should only be changed, if it's applicable to the accounting framework being used such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Also, it is important to state in the footnotes of the financial statements a full disclosure to highlight the justification for the preferred change and financial implications of this change.
The following are true about the change in accounting principles;
1. Most changes in accounting principles are retroactively reported.
2. Changes in accounting principles are allowed when new principles are preferable to old ones.
3. Consistency is one of the biggest concerns when a change in accounting principle is undertaken.
Answer:
Standard quantity of base per bottle is 1.39 kg
Explanation:
Standard Quantity includes normal wastage and normal allowances. Calculation of Standard Quantity is as follows:
kilograms of base required = 0.79
normal allowance for waste = 0.40
normal allowance for rejects = 0.20
Total = 1.39
Answer:
$47,000
Explanation:
Cedar Grove Industries CVP Income Statement for Month Ending May, 2017
Total Per Unit
Sales ($49×7,600) $372,400 49
Less Variable Cost
($28×7,300) $204,400 28
Contribution Margin $168,000 21
Less Fixed Cost$121,000
Net Income (loss)$47,000
