Marquis Company uses a weighted-average perpetual inventory system.

Wyatt Co. has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the rang

anygoal [31]

Answer:

D. The minimum of the range

Explanation:

First, it is essential to note the accrual of loss contingency is accruable only if the amount is estimable to a reasonable extent and the loss is also probable. Wyatt Co's loss is actually both probable and reasonably estimated so it meets the two criteria.

Furthermore, since it is reasonable within a rang of outcomes, Accounting Standards Codification Topic 450 (of the Financial Accounting Standard Board) dictates the amount to be accrued should be the better estimate of all amounts within the range.

The standard further states that in a situation where a better estimate can not be determined among the other amounts within the range then the amount accrued should be the one at the range's low end or the minimum amount of the range.

All these criteria shows that Wyatt CO's loss should accrue the minimum amount in the range

6 0

3 years ago

Write a team consensus response of 525 to 700 words to include the following: • Provide detailed rational of why goodwill must b

grin007 [14]

1)Provide detailed rational of why goodwill must be adjusted for impairment

U.S. generally accepted accounting principles (GAAP) require companies to review their goodwill for impairment on an annually basis at a reporting unit level. Events that are considered as the main causes of goodwill impairment include deterioration in economic conditions, increased competition, loss of key personnel, and regulatory action

Explanation:

1)Provide detailed rational of why goodwill must be adjusted for impairment

U.S. generally accepted accounting principles (GAAP) require companies to review their goodwill for impairment on an annually basis at a reporting unit level. Events that are considered as the main causes of goodwill impairment include deterioration in economic conditions, increased competition, loss of key personnel, and regulatory action

2) List the tests for impairment. 

Impairment test is an accounting procedure carried out to find out if an asset is impaired( i.e. whether the economic benefits that the asset embodies have dropped drastically.)

As per US GAAP, if the carrying value of an asset exceeds the sum of undiscounted expected cash flows of an asset, the asset is impaired

3)Explain the meaning of a non cash impairment charge

A non-cash charge is a accounting expense that does not involve a cash payment.

(Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows)

5 0

4 years ago

What is the primary goal of financial management for a sole proprietorship? maximize net income given the current resources of t

Ludmilka [50]

A sole proprietorship has the single owner of the business and the main goal of the owner is to increase the value of his capital invested in the business which is also called as Equity.

The objective of maximization include the maximization of net income given the current resources of the firm

A proprietorship has only one owner so there is no need to decrease long-term debt to reduce the risk to the owner.

The proprietor wants to earn more income and he will have to pay more taxes so the goal is not to minimize the tax impact on the proprietor.

Similarly, the goal is also not to minimize the reliance on fixed costs.

Hence the correct answer is:

Maximize the market value of the equity

4 0

3 years ago

Managerial accounting information is generally prepared for a. shareholders b.creditors c.managers d.regulatory agencies

amm1812

Answer:

Correct option is (c)

Explanation:

Managerial accounting reports are prepared for the internal use by managers within different departments in the organization. They may or may not be published for external users like creditors or customers.

These reports need not comply to any established authorities like GAAP or IFRS. They are used by managers for various decision making purposes, so they can be prepared as per the manager's convenience.

8 0

3 years ago

If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin rati

Vladimir79 [104]

Answer:

a. 29%

Explanation:

Given that

Contribution margin = $55,900

Sales = $190,000

The computation of contribution margin ratio is shown below:-

Contribution margin ratio = Contribution margin ÷ Sales

= $55,900 ÷ $190,000

= 29%

Therefore for computing the contribution margin ratio we simply divide sales by contribution margin ratio.

6 0

3 years ago