Answer:
$1,500
Explanation:
Data provided in the question
Sales for the appliances for the entire month = $50,000
Expected future warranty cost = 3% of sales
By considering the above information, the amount that should be reported as a liability is
= Sales for the appliances for the entire month × Expected future warranty cost
= $50,000 × 3%
= $1,500
Simply we multiplied the sales with the given percentage so that the liability amount could arrive
The case of QHIC will have an accurate prediction but not the Tasty Sub Shop Case.
Explanation:
<u>Simple Linear Regression Analysis is done to predict the trend of one variable in accordance with another independent variable</u>. This concept does not account for multiple independent or interdependent factors in predictions.
<u>Thus, the projections are accurate when there is only one factor involved to influence the Prediction.</u>
This is so in the QHIC case as any household that spends more on home upkeep will be an ideal advertising target for the firm.
However, just the number of residents in the locality cannot ensure the profitability of a restaurant. competition from other restaurants, net income and eating habits of the locality must also be considered.
Answer:
The fair value of $ 60 comma 000
Explanation:
Although under US GAAP, the basic accounting principle is historical cost principle in which original cost of purchasing assets are used to record most assets, especially fixed assets, despite that there might have been significant rise in their value over time.
However, not all assets are recorded at their historical cost. Financial assets which are intangible such as market securities are recorded in the balance sheet at their fair value. Intangible assets which have impaired are reduced their fair value from the historical cost.
Since investments in equity securities (in Essence Company) by Kyler Shea Productions is an intangible marketable security, the appropriate amount for Kyler Shea Productions to report for these investments on the December 31, 2018 in the balance sheet is fair value of $ 60 comma 000.
