Answer:
C. Pro forma statements
Explanation:
Pro forma financial statements are similar to historical financial statements in appearance and use, except that they focus on the future instead of the past and are based upon assumptions rather than hard fact.
Pro forma statements allow management to exercise a certain amount of creativity and flexibility.
It helps management in decision making.
Answer:
LIFO method
Explanation:
The last-in, first-out (LIFO) inventory method values the cost of goods sold (COGS) using the price of the last purchases made by the company. This valuation method is accepted by the US GAAP and it is generally applied when the replacement costs are continuously increasing.
On the other hand, the IFRS (the international accounting standard) does not allows LIFO, it only accepts FIFO.
Answer:
A. All potential common shares.
Explanation:
Basic earnings per share ignores all potential common shares.
I would think to find out how much you make so A,B and c and d is a mystery to me. Hope this helped
Answer:
the gain would be reported i.e. $10,778
Explanation:
The computation is shown below:
The Value of 100000 bonds is
= $530,000 ÷ $500,000 × 100,000
= $106,000
Now
Premium amortization in 4 month is
= $7,000 ÷ 36 months × 4 months
= $778
Now
Carrying value on may 1, 2018 is
= $106,000 - $778
= $105,222
Now
Retirement value is
= 100,000 × 1.16
= 116,000
So,
Gain on retirement is
= 116,000 - 105,222
= $10,778
Hence, the gain would be reported i.e. $10,778
