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solmaris [256]
3 years ago
10

Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc. The company has a policy that all expenditures

greater than $1,000 (1% of total expenditures) have to be capitalized; less than $1,000 expensed. Steve is under pressure to report high earnings. He takes one $600 and $900 expenditure, adds them together, and records a capital expenditure for $1,500. Which of the following reasons and rationalizations might Steve use for his action: Group of answer choices
A. One-time request
B. Standard Practice
C. Representational faithfulness
D. Materiality
Business
1 answer:
Svetlanka [38]3 years ago
5 0

Answer: Materiality

                   

Explanation: In simple words, materiality refers to the accounting concept which states that only those transaction should be recorded in the financial statements which are important to the stakeholders.

In other words, the transactions should be recorded in such a way that it gives some value to the stakeholders.

Therefore, in the given case, steve reported two expenditures in the fiancial statement as the amount is significant, thus,must be holding the value to stakeholders.

Hence the correct option is D.

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Simone lives in a country in which the government does not impose quotas on what can be imported or on what businesses can produ
irina1246 [14]

The type of situation that describe a situation where government does not impose quotas on what can be imported is known as free trade.

<h3>What is free trade?</h3>

Free trade is an agreement between two or more countries to remove trade barriers or restrictions . This enable member countries trade freely without any impediment to import and export of goods.

Countries come together to promote their goods and services by taking away any thing that could hinder import and export of goods among member nation. This bring about increased efficiencies.

Hence, the type of situation that describe a situation where government does not impose quotas on what can be imported is known as free trade.

Learn more about free trade here: brainly.com/question/3520350

7 0
2 years ago
Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of sell
Ber [7]

Answer:

Item           Inventory at the lower-of-cost-or-market

 #1                                    $214.50

 #2                                  $240.00

 #3                                  $266.50

 #4                                   $315.00

 #5                                  $422.50

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See attached pdf file for the complete question.

Also note: See the attached excel file for the determination of the value of inventory by applying the lower-of-cost-or-market rule.

From the attached excel file, we have:

Item           Inventory at the lower-of-cost-or-market

 #1                                    $214.50

 #2                                  $240.00

 #3                                  $266.50

 #4                                   $315.00

 #5                                  $422.50

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
4 0
3 years ago
An entity has two long-term construction contracts, one of which qualifies for revenue recognition while the performance obligat
Morgarella [4.7K]

Answer: construction receivable

Explanation:

Accounts receivable management involves improving the collection process for efficiency, identifying the reasons for nonpayment and being proactive in reminding clients about their overdue accounts.

6 0
3 years ago
Read 2 more answers
Evaluate the following statement. "We shouldn’t generalize from what people do in the ultimatum game because $10 is a trivial am
Andru [333]

Answer:

People behavior with lump sum amount:

The experimental evidence shows that people always expect to be treated fairly. When people are treated unfairly, then they will reject the offer regardless of the value of money. Thus, the statement that "should not generalize the evident resulted from $10 experiment. When the size of money is large then people will react differently from the evidence" is false.

4 0
3 years ago
The sales budget for Modesto Corp. shows that 21,900 units of Product A and 23,900 units of Product B are going to be sold for p
rewona [7]

Answer:

22,290 units

Explanation:

Product A sales (S) = 21,900 units

Product A selling price = $11.90

Product A beggining inventory (I)= 3,900

Product A ending inventory (E) = 3,900 x 1.10 = 4,290

Budgeted purchases of product A must account for all of the projected sales and the desired ending inventory, assuming that the company already has a beginning inventory at hand. Budgeted Purchases of product A are given by:

B = S+E-I\\B= 21,900+4,290-3,900\\B= 22,290\ units

6 0
3 years ago
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