Answer:
JOURNAL ENTRY :
Unrealized holding loss on purchase commitment - - - - - $48,700 Dr.
Estimated liability on purchase commitment ($990,700 - $942,000) - - - - 48,700 Cr.
Explanation:
Given the following :
Agreed purchase price of raw materials in 2018 = $990,700
Market value of raw material at 31, December 2018 = $942,000
JOURNAL ENTRY :
Unrealized holding loss on purchase commitment - - - - - $48,700 Dr.
Estimated liability on purchase commitment ($990,700 - $942,000) - - - - 48,700 Cr.
Answer: The correct answer is True.
Explanation: Functional Structure is a structure where the organization groups employees according to a specialized or similar set of roles or tasks. This structure often does impede coordination and communication because of the competition between members of the group. A common characteristic of this type of group is that the members become territorial and often do not want to cooperate with other groups.
If 97% came from domestic sources then 3% came from foreign sources. This means that $450,000 is 3/100 of the total amount. You need to divide 450,000 by 3 to get 1/100 (1%) of the total amount, then multiply that number by 100 to give you the sum of 100/100 (100%) of the company's revenues:
450,000/3=150,000×100= $15,000,000
So, the company made $15,000,000 last year
Answer: An officer participates in litigation against the CPA firm. This is an example of Adverse interest.
<u>Explanation:</u>
This is an example of Adverse interest. Adverse here means against the interest of others. This type of interest in mostly found in case of property disputes. Like if a person has illegally occupied someone else's property than his interest in that property will be adverse the interest of the real owner of that property.
Similarly here an officer is participating in legal action against CPA firm,The interest of an officer will be an adverse.
Answer:
I. It helps users to be better informed, so they can evaluate the risks and returns of different business decisions.
II. It collects and processes data from transactions and events.
III. It organizes financial information into useful reports.
IV. It communicates financial information to decision makers.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB).
The fundamental functions of an accounting system includes;
I. It helps users to be better informed, so they can evaluate the risks and returns of different business decisions.
II. It collects and processes data from transactions and events.
III. It organizes financial information into useful reports.
IV. It communicates financial information to decision makers.
