Answer: Stand alone principle
Explanation:
Stand alone principle is the principle that is used by a company to decide whether or not to engage in a project based on the profitability of identical projects that has the same risk. Stand alone principle allows firms to evaluate a project based solely on the incremental cash flows of a firm that is related to the project.
Without stand-alone principle, the project evaluation for a firm would require the forecast of all of the firm’s cash flows.
Marketing Strategists provide the advertiser with useful guidelines for future advertising by evaluating the effectiveness of an individual ad or an entire ad campaign after it runs.
Explanation:
Marketing strategists are professionals employed to check and see the validity of the advertising that is being run by the advertisers and check their effectiveness in the ground level.
The usual marketing strategists would come up with solutions for the advertising that are needed to reach out to the goals of the company and also formulate a plant hat they can follow as the advertiser then would make the ad for them.
Answer:
$39,960
Explanation:
Considering all the transactions recorded;
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
As such amount that should have been posted to insurance expense
= $5400/3
= $1800
Adjustment required
= $5400 - $1800
= $3600
When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are
Debit Cash account and Credit Unearned fees or deferred revenue.
As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.
Hence the revenue will be deducted ($775).
When the inventory closing balance is understated, the cost of goods sold is overstated and as such the net income which is posted to the retained earnings will be understated
. $795
Interest expense to be recognized
= 12% * 3/12 * $22,000
= $660
the proper amount of net income for 2021
= $37,000 - $660 - $775 + $3600 + $795
= $39,960
Answer:
Total Stockholder's Equity = $7,200,000
Explanation:
Power Drive Corporation
Partial Balance Sheet
As on Dec.31, 2021
Stockholder's Equity:
Common Stock $100,000
Additional Paid in-Capital $4,500,000
Retained Earning at beginning $2,000,000
Add: Net income <u>$600,000</u>
Total Retained Earnings <u>$2,600,000</u>
Total Stockholder's Equity <u>$7,200,000</u>