Answer:
Creative Sound Systems should report $15,9 million as net cash flows from financing activities.
Explanation:
Consider only items relating to financing activities.
Cash flow from financing activities
Proceeds from Sale of common stock $41.8 million
Purchased of treasury stock ( $25.9 million)
Net Cash flow from Financing Activities $15,9 million
Answer:
b. performing an experiment in an economic system.
Explanation:
In contrast to scientific experimentation, whereby connections and differences can be measured between two or more variables. In economics, theory and observation are more difficult than in sciences such as physics due to the difficulty in performing an experiment in an economic system, as human beings' opinions change over time, due to dynamism in human society.
Hence, in this case, the correct answer is option
Answer:
(A) GAAP does not have substantial authoritative support.
Explanation:
Choices B to C are true about GAAP.
Now, Choice A is not true since GAAP also includes detailed procedures and practices that provide a <u>standard</u> and not only broad guidelines of general application and this will imply that GAAP has a <u>substantial authoritative support.</u>
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Also it is called "Generally Accepted Accounting Principles" for this reason.
Answer:
The total cost of vacation pay and pension rights to be recognized the first year is $0
Explanation:
The vacations are expected to be taken the following year for which the vacation pay would be made and the pension rights are expected to be paid over the next 5-30 years. So, no cost is recognized in the first year
Answer: The following journal entries would apply:
<u>Purchase of franchise:</u>
Debit: Restaurant franchise (intangible asset) $85,000
Credit: Cash $85,000
<u>Amortization of franchise:</u>
Debit: Amortization charge $708
Credit: Accumulated amortization $708
Explanation: When the franchise was purchased, there was a cash outflow. So the above first entries would apply in order to recognize the intangible asset in Frazier Company's books. However, the intangible was meant to be amortized over 10 years, meaning $85,000/10 years = $8,500 annual amortization charge. We still have to divide this by 12 in order to arrive at the monthly amortization charge. So $8,500 divided by 12 months = $708 monthly. The above entries apply on amortization.