The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality. In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.
According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.
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Answer:
Objective and task budgeting method
Explanation:
The objective and task method refers to a budgeting method where a business allocates a certain marketing budget in order to achieve specific objectives, instead of simply allocating a marketing budget based on percentage of sales revenues.
Doodle set its specific goals:
- increase the sales of its basic steel pins by 10%
- increase the awareness of its glow-in-the-dark pins
And then it allocated $1.5 million for marketing expenses.
Given that a<span>
factory machine was purchased for $375000 on january 1, 2018. it was
estimated that it would have a $75000 salvage value at the end of its
5-year useful life. it was also estimated that the machine would be run
40000 hours in the 5 years. the company ran the machine for 4000 actual
hours in 2018.
If the company uses the units-of-activity method of
depreciation, the amount of depreciation expense for 2018 would be
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Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $100,000
To Notes payable A/c $100,000
(Being the issuance of the note payable is recorded)
For recording this transaction, we debited the cash account as it increases the asset and credited the note payable account as it also increases the liabilities account
Answer: 8%
Explanation:
Profit Margin = Net income / Net sales
2017 Net income ⇒ $54,400
2017 Net Sales ⇒ $680,000
Profit Margin₂₀₁₇ = 54,400/680,000
= 0.08
= 8%
