Answer:
Accuracy
Explanation:
If the information is not accurate then it can not be relied upon. The information must be reliable, for that the information must be accurate. If the information is incorrect then it will affect the operations of the company. Nowadays online accounting software has enabled us to increase the accuracy of the items being recorded.
Answer:
$200,000
Explanation:
Now, it is assumed here that the bonds are issued at par.
First interest payment = Face Value * Stated Interest Rate * Half yearly
First interest payment = $8,000,000 * 5% * 1/2
First interest payment = $200,000
So, the amount that Apple Computers would record as interest expense on June 30 is $200,000.
Answer:
a.Increase Net Income
Explanation:
Unearned Revenue
The Accrual Principle requires Incomes and expenses to be recorded in the period they occur or incur.
Revenue not earned has not yet occurred and can not be recognized hence no effect on revenues reported for the period.
Fees earned
Fees earned represents increases in economic benefits from non primary activities of the company.
This has the overall effect of increasing Net income in the reporting period
Answer:
a.An increase in cash flows from operating activities
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets such as inventory, accounts receivables etc, (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. A decrease in assets (other than cash) is an inflow of cash while a decrease in liabilities is an outflow of cash.
Answer:
Associated cost = 0.42x + 76
Revenue = $0.62x
Profit function = 0.20x - 76
Explanation:
Data provided in the question:
Fixed production costs = $76 per edition
Marginal printing and distribution costs = 42¢ per copy = $0.42
Selling cost = 62¢ per copy. = $0.62
Now,
Associated cost = mx + b
here,
m is the marginal cost
x is the number of copies
b is the fixed cost
Thus,
Associated cost = 0.42x + 76
Revenue = Selling cost × Number of copies
= $0.62x
Profit function = Revenue - Associated cost
= $0.62x - ( 0.42x + 76 )
= $0.62x - 0.42x - 76
= 0.20x - 76