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miv72 [106K]
3 years ago
8

Book Values versus Market Values In preparing a balance sheet, why do you think standard accounting practice focuses on historic

al cost rather than market value
Business
1 answer:
Pachacha [2.7K]3 years ago
6 0

Answer:

Historical costs is objectively and precisely measured, whereas market values can be difficult to estimate, and different analysts would come up with different

values.

Explanation:

In preparing a balance sheet it is customary for a company to value the assets and other items based on historical costs rather than market values.

For example if an asset is purchased at $20,000, this value will reflect in the balance sheet in subsequent years. Or future calculation will be based on this.

Let's say yearly depreciation is $1,000 then after on year the value will be $19,000, after two years $18,000 and so on.

This is more object than market value which varies at any one time.

Market value for an item will vary depending on location and the market.

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azra’s position as the manager of natural nutrition gives her the ________ to make many decisions during the course of a week, i
Mama L [17]

The appointment of Azra as manager gives her <u>authority</u> to make many decisions during the course of a week

Let understand that options includes <em>accountability, authority, responsibility, delegation.</em>

<em />

Basically, the main function of an organization manager is increase the efficiency or effectiveness of their employees, processes, projects, organizations etc

However, the four basic functions of manager includes effective planning, organizing, leading, and controlling of units in the company.

Therefore, Azra’s position gives her authority to <em>make decision</em>, <em>assigns tasks</em>, <em>approve budget requests</em> and <em>market the business</em>.

Learn more about Manager function here

<em>brainly.com/question/15351742</em>

6 0
2 years ago
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $118,800 and expected direct labor hours of 10,800 for
Lisa [10]

Answer:

$15,730

Explanation:

<em>under absorption costing overheads are charged to product units using an overhead absorption rate. </em>

The overhead absorption rate is determined using the formula below:

<em>Overhead absorption rate is = Budgeted Overheads / budgeted Labour hours</em>

Factory overhead Absorption rate  (OAR)=  $118,800/10,800

                                               = $11 per hour

 Amount of 0verhead to charge Number number 117

                                  = 11 × 1,430

                                  = $15,730

6 0
2 years ago
A negative in the pigmalion effect theory
Svetach [21]

Explanation:

Negative implications of the Pygmalion Effect: Unjustified expectations end up becoming real. ... Secondary teachers have lower expectations to colored students and students from poor and disadvantaged backgrounds.

3 0
3 years ago
___________ is a doctrine that applies to strict liability actions that says a plaintiff who is contributorily negligent for his
Anna35 [415]

Answer:

Crash worthiness

Explanation:

Crash  worthiness is a term that depicts a vehicle's capacity to ensure its tenants during an impact.  

In the event that you continue wounds in a fender bender because of the vehicle's absence of crash value, at that point you may have a case against the vehicle's producer.  

It is exceptionally reliant on how the materials, development and plan of the vehicle cooperate.

7 0
3 years ago
A monetary growth rule means that :__________a) the Fed will raise interest rates if it thinks the economy is growing faster tha
Mkey [24]

Answer:

d) the money supply should grow at a constant rate.

Explanation:

The Federal Reserve System (popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, the Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

Monetary growth rule is a theory that was proposed by Friedman and it states that the Federal Reserve System (Fed) should be required to set or target the money supply growth rate to be equal to the growth rate of Real gross domestic product (GDP) each year and leaving the price level of goods and services unchanged.

Basically, this growth rate of gross domestic product (GDP) is usually set between 1% and 4%. Also, the monetary growth rule is also referred to as the K-Percent rule.

Hence, a monetary growth rule means that the money supply should grow at a constant rate.

5 0
2 years ago
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