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2 years ago

Identify the accounting assumption or principle that is described below.

Business

1 answer:

Inga [223]2 years ago

7 0

Answer and Explanation:

a. Going Concern Assumption : It means the organization would be remain open always whether the people go or not

b. Economic Entity Assumption

: The owner and the business records should be maintained separately.

c. Monetary Unit Assumption

: It means all the transactions should be recorded in monetary terms

d. Periodicity Assumption

: It means for a period of time different financial information could be recorded

e. Historical Cost Principle : Always used the orginial cost at the time of recording

f. Full Disclosure Principle: All information should be disclosed to the notes to the financial statements

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Each of the following independent events requires a year-end adjusting entry. Show how each event and its related adjusting entr

Tatiana [17]

Answer:

1. Prepaid insurance (Dr.) $6,300

Cash (Cr.) $6,300

2. Cash (Dr.) $15,300

Unearned Income (Cr.) $15,300

3. Purchases (Dr.) $1,750

Accounts payable (Cr.) $1,750

Cost of Goods Sold (Dr.) $1,620

Ending Inventory (Dr.) $130

Purchases (Cr.) $1,750

4. Prepaid office rent (Dr.) $6,300

Cash (Cr.) $6,300

Explanation:

The adjusting entry is a journal entry recorded at end of accounting period to adjust events or transactions to comply with the accrual concept.

The closing entries are journal entries required to close a transaction or event in the period. The purpose is to follow matching concept of accounting.

7 0

3 years ago

John and his wife Martha get a divorce. Per the divorce settlement contract, Martha agrees to pay John alimony in the amount of

OleMash [197]

Answer:

c) the condition subsequent has occurred;

Explanation:

Since in the question it is given that the John and his wife Martha get a divorce and according to the divorce settlement contract she agrees to pay the alimony to John for $5,000 per month for his lifetime or until that time when he should remarry

If John remarries after three years, so the alimony benefits is ceased because the subsequent condition has occurred due to which he will not get the amount further in the future

7 0

3 years ago

Discuss the tradeoffs between fiber-optic and satellite communication in terms of costs, signal capacity, signaling method, inte

mylen [45]

Answer:

Explanation:

I will split this answer into two options...

Fiber Optic communications work by sending data through beams of light through a series of fiber cables. This allows for data transfer at incredibly high speeds and with an almost non-existent probability of data loss. Since cables need to be connected from one end-point to another this form of communication becomes more expensive and the capability of reconfiguration becomes incredibly difficult. The likelihood of failure is also very low due to the nature of the technology.

Satellite communication sends data wirelessly by beaming the data to satellites and then back down to the destination. This allows for data to be transferred worldwide but runs into the risk of interference, data loss, signal loss etc. Costs are much cheaper than Fiber Optics due to the lack of wiring. Multipoint capabilities are high since endpoints can be placed anywhere with a clear line of sight to the sky, which also means that reconfiguration capabilities are high as well.

5 0

2 years ago

The Instant Pot electric pressure cooker was introduced in 2010 and had a slow start, but word of mouth from social media and in

vagabundo [1.1K]

The stage in the product life cycle of the Instant Pot would be "growth stage".

<h3>Stages in product life cycle:</h3>

There are four stages in the life cycle of a product in the market which are-

Take-off stage or introduction,
Growth stage or shake-out stage,
Maturity stage and
Decline.

The characteristics of Growth stage are-

Increasing sales, customers and profit.
Greater competition from fellow companies. As rival companies release similar products, the competition is frequently strong during the growth period.
The product will move into the growth stage if it maintains its success and continues to satisfy market demands.
Price undercutting in the growth stage is typically uncommon because businesses in this stage can boost revenue by luring in new clients.

The said product can be confirmed to be in the growth stage because it exhibits higher growth in demand by social media marketing. Also, it shows there was a rise in the rival companies Ninja and Crock-pot pressure cookers.

Learn more about product life cycle, here

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7 0

1 year ago

Differential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a manually oper

jasenka [17]

Answer:

Continue with old machine

Explanation:

Differential Analysis

Continue with Old Machine (Alt.1)or Replace Old Machine (Alt.2

May-04

Continue with Old Replace Old Diff. effects Machine (Alt. 1) Machine (Alt.2) (Alt. 2)

Revenues:

Sale ( 5 years) 803,500 803,500 0

Costs:

Purchase price 0 -105,500 105,500

Direct materials -274,000 -274,000 0

( 5 years)

Direct labor -190,000 0 -190,000

( 5 years)

Power and -17,500 -94,000 76,500

maintenance

Taxes, insurance -6,500 -21,000 14,500

etc ( 5 years)

Selling and -190,000 -190,000 0

administrative

expense ( 5 years)

Total expenses -678,000 -684,500 6,500

Profit (Loss) $125,500 $119,000 $6,500

Hence it is advantageous to continue with old machine. Net incremental advantage of continuing with old machine = $6,500

6 0

3 years ago