Answer:
Goodwill impairment occurs when a company decides to pay more than book value for the acquisition of an asset.
An impairment is recognized as a loss on the income statement and as a reduction in the goodwill account. The amount of the loss is the difference between the current fair market value of the asset and its carrying value or amount.
Explanation:
Answer:
Financial accounting
Explanation:
The Generally accepted accounting principle (GAAP) is the standard, principles and procedures that accountant must follow or adhere to when compiling financial statements. The major objective of GAAP is to make the accounting process uniform so financial reports are comparable from one company to another.
Answer:
True
Explanation:
The board as described, refers to the group formed of all the directors, in a company.
Out of all the directors, one individual is selected to lead the group called Chairman.
Further, a designation called Chief Executive Officer is provided to an individual, who is held as one among the key members of the company.
But that person is below the directors, and is appointed through directors.
Answer:
50% discount
Explanation:
We have the formula
price = marginal cost*(E/(E + 1)
)
We are given the following:
price per unit item = $10
elasticity of demand, E = -3 for coupon users
marginal cost MC = ?
Hence
10 = MC * (-3/(-3 + 1))
10 = MC * 1.5
MC = 10 / 1.5 = 6.67
So, the appropriate discount that can be given is
price - marginal cost = 10 - 6.67 = $3.33 per box
OR 3.33 / 6.67 = 50% discount over cost.
Answer:
1. 2600 units
2. $72,800
3. 2,675 units
4. $74,900
Explanation:
Provided,
Sales price per unit = $28
Variable cost per unit = $20
Thus, Contribution per unit = Sales price - variable cost = $28 - $20 = $8
Contribution as percentage = 
Fixed Cost = $20,800
1. Break even point in unit sales = 
= 
2. Break even point in dollars = Break even point in units 
sales price per unit
= 2,600 $28 = $72,800
Or straight break even point in dollars = 
3. In case fixed cost increase by $600
New fixed cost = $20,800 + $600 = $21,400
Thus, break even point in units shall be = 
4. Break even point in sales = 
