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PtichkaEL [24]
3 years ago
12

IOP Company purchased a machine on 1/1/22 costing $500. Estimated life was 5 years; estimated salvage value was $100. In 2025, I

OP discovered that the bookkeeper correctly used straight-line depreciation, but erroneously used an estimated life of 8 years in computing depreciation for the first 3 years of life. The Prior Period Adjustment to be recorded in 2025 will be:
Business
1 answer:
Fittoniya [83]3 years ago
7 0

Answer:

The Prior Period Adjustment to be recorded in 2025 will include a $90 debit as adjustment to Retained Earnings

Explanation:

Correct depreciation would have been = ($500-$100)/5 = $80

Depreciation charged wrongly as ($500-$400)/8 = $50

Therefore depreciation has been charged short by $30 for three years, thereby reflecting income greater by $30 each year for 3 years.

Since due to wrong depreciation retained earnings is higher by $90, therefore we have to debit retained earnings by $90

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With the annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined
Inga [223]

Answer:

C. 30

Explanation:

given that:

Daily demand = 10 units

Starting Inventory Level = 40 units

Inventory Level at the end of the day if production starts = 0

The number of units that would actually be there in the warehouse at the end of first day of production  = 40 units - 10 units

                                                       = 30 units

Therefore, There will be 30units in the warehouse at the end of the first day of production.

3 0
3 years ago
The role of the Securities and Exchange Commission (SEC) in the formulation of accounting standards can be best described as1. i
Dvinal [7]

Answer:

2. Varied- the SEC relies on FASB to develop standards but gives advice and recommendations to the private sector as needed.

Explanation:

The FASB, Financial Accounting Standards Board is an independent non- profit organization, formed in 1973, that is tasked with establishing accounting as well as financial reporting standards for profit and nonprofit organizations in the USA. It also has the authority to interpret generally acceptable accounting principles for private and public companies in preparation of financial reports and presentation of such reports. The SEC like every other organization, relies on the FASB to formulate rules and regulations (standards) for public companies mainly while giving private companies recommendations. The FASB is recognized by state accounting boards such as AICPA (American Institute of Certified Public Accountants) among other accounting boards.

I hope this helps.    

8 0
4 years ago
According to economists, when two people make the exactly opposite decision:
disa [49]

Answer:

b. each person evaluates the situation according to his/her individual self-interest.

Explanation:

This can be generally seen in ancient and modern form of economics where in the course of their works, they can end up countering themselves in the midst of a project.

Here, or in a case of such, a great part of economics deals and accommodates psychology an the both economics that have probably found themselves in the field are expected to evaluate the situation according to each others self interest; especially when knowing the risks, pros and negative effect of the activities that is been carried out.

Secondly, this model is a useful measurement device by which economic situations can be evaluated and also levels of competition that exist in real markets can be checked.

6 0
4 years ago
The largest asset class on u.s. commercial banks' balance sheet as of september 30, 2012 was
Thepotemich [5.8K]
Answer: real estate loans
6 0
3 years ago
In her report about electric cars, Lavonda wants to use information to substantiate her theory that they are helping the environ
slega [8]
Elon musks annual report. It makes the most sense.
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3 years ago
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