1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
myrzilka [38]
3 years ago
9

Carson Lee, a staff accountant, is a working on some research for his partner, Joe Davis. Joe has asked Carson to find the prope

r citation providing guidance on when the acquisition of equipment is reported in the operating section of the statement of cash flows. Using the authoritative literature, locate the correct guidance.
Business
1 answer:
eimsori [14]3 years ago
7 0

Answer:

According to IAS-7 articulation of incomes, Operating incomes implies principle income – creating exercises of a substance that are not contributing exercises or financing exercises. So working initiates incorporates the money receipts from offer of items to clients, instalments to material providers and representatives (according to IAS Para 7.14).  

In any case, contributing exercises incorporates the securing and removal of long haul resources and different speculations incorporates that are not viewed as money and cash equivalents (according to IAS Para 7.6).  

In the current case securing of gear is long haul resource, so it ought to be accounted for as contributing action and not as operating activity.

You might be interested in
Which of the following would be included in a properly prepared comprehensive annual financial report (CAFR), but not in the min
Elan Coil [88]

Answer: D. Combining and individual fund financial statements.

Explanation: Annual financial Report, the most common of this set of reports issued are general purpose financial statements that include income statement, balance sheet, retain earnings and statement of cash flow. It is a financial statement of 12 consecutive months in a year.

There are items that will be include such as Combining and individual fund financial statements.

7 0
3 years ago
During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,
bulgar [2K]

Answer:

Western Creations Company

1. Income Statements for July and August, under absorption costing:

                                               July                   August

Sales Revenue                $4,320,000.00    $4,320,000.00

Cost of goods sold            3,240,000.00      2,649,600.00

Gross profit                      $1,080,000.00     $1,670,400.00

Total selling & admin. exp. $169,000.00       $169,000.00

Net Income                          $911,000.00     $1,501,400.00

2. Income Statements for July and August, using variable costing:

                                                   July                   August

Sales Revenue                    $4,320,000.00    $4,320,000.00

Variable cost of goods sold  3,081,600.00       2,491,200.00

Contribution margin            $1,238,400.00     $1,828,800.00

Fixed expenses:

Total fixed costs                      345,000.00         345,000.00

Net income                           $893,400.00      $1,483,800.00

3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

Explanation:

a) Data and Calculations:

Number of hats produced = 80,000

Number of hats sold = 72,000

Ending inventory = 8,000

1 Sales $4,320,000.00

2 Manufacturing costs:             July                    August

3 Direct materials                  $1,600,000.00    $1,280,000.00

4 Direct labor                           1,440,000.00       1,152,000.00

5 Variable manufacturing cost 240,000.00         192,000.00

6 Fixed manufacturing cost      320,000.00        320,000.00

Total manufacturing costs   $3,600,000.00  $2,944,000.00

Under absorption costing:

Unit cost = $45 ($3,600,000/80,000)             $36.80 ($2,944,000/80,000)

Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)

Ending Inventory =         360,000 ($45*8,000)         294,400 ($36.8*8,000)

7 Selling and administrative expenses:

8 Variable                                 $144,000.00       $144,000.00

9 Fixed                                         25,000.00          25,000.00

Total selling & admin.  exp.     $169,000.00      $169,000.00

Under variable costing:

2 Manufacturing costs:

3 Direct materials                    $1,600,000.00     $1,280,000.00

4 Direct labor                             1,440,000.00        1,152,000.00

5 Variable manufacturing cost   240,000.00          192,000.00

8 Variable selling & admin cost   144,000.00          144,000.00

Total variable costs =             $3,424,000.00    $2,768,000.00

Unit variable cost = $42.80 ($3,424,000/80,000)     $34.60

Cost of goods sold = $3,081,600 ($42.80 * 72,000)  $2,491,200

Ending Inventory =         342,400 ($42.80 * 8,000)         276,800

6 Fixed manufacturing cost    $320,000.00            $320,000.00

9 Fixed selling & admin. cost      25,000.00                25,000.00

Total fixed costs =                   $345,000.00            $345,000.00

7 0
3 years ago
Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the
Dmitriy789 [7]

Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. in business, this is called the "value-added" approach.

There is a correct theory called marginal productivity theory. Wages are paid at a level equal to the marginal revenue product of labor, the MRP (value of the marginal product of labor). MRP is the increase in income caused by the increase in output produced by the last employed worker.

The marginal productivity theory of income distribution proposes that each individual should receive income based on their contribution to total output. The marginal productivity theory of income distribution has been criticized for the following reasons. Income from inheritance is inconsistent with the theory.

Learn more about Marginal revenue here: brainly.com/question/13617399

#SPJ4

7 0
2 years ago
The FASB and IASB are attempting to resolve the differences between U.S. GAAP and IFRS using a process known as
gulaghasi [49]
The answer for this question is: Convergence
Convergence is a form of action that will transform a certain difference between two parties into one uniformity.
This step is really important so the accountant that operates all around the world will have the same standard to conduct in handling their financial operations.
8 0
3 years ago
How do changes in the environment affect businesses and thus consumers?
fiasKO [112]

Answer:

If the environment changes then the businesses will make products you need in that environment so consumers will buy more of that product because they need it. For example, if it's summer you need new summer clothes so companies will start to make summer clothes so people will buy them instead of winter or fall clothes because of the environment. So businesses are getting money and the consumers are getting what they need or want.  

8 0
2 years ago
Other questions:
  • Greg's Copy Shop bought equipment for $60,000 on January 1, 2006. Greg estimated the useful life to be 3 years with no salvage v
    13·1 answer
  • You have won the lottery. You will receive $5,500,000 today, and then receive 40 payments of $1,900,000. These payments will sta
    11·1 answer
  • What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Priv
    12·2 answers
  • The uncontrollable issue of _____ faced by a company abroad is often amplified by the "alien status" of the company, which incre
    9·1 answer
  • __________ is setting a price for products that must be used along with a main product, such as blades for a razor and games for
    10·1 answer
  • Accounting information systems:
    5·1 answer
  • Who can sign a determination and findings justifying the use of an award-fee contract
    9·1 answer
  • Which type of markup takes into account the total costs of running the company not just the wholesale cost of the product so tha
    6·2 answers
  • It is important to keep the same tense in your business writing, because otherwise your readers may ______.
    15·2 answers
  • Swifty Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!