Answer: Regulation Fair Disclosure (Reg FD)
Explanation: Passed by the Securities and Exchange Commission, the aim of this rule is to prevent public companies from releasing selective disclosure to a limited group of people. Reg FD goes on to state that when these public companies release info of material value to certain professionals and shareholders, then they are obligated to publicly disclosed this information as well. It is important to note that this regulation doesn't necessary require info to be disclosed to all individuals outside the corporation, but merely disclosure to professionals within the securities market.
Answer:
a. Monica is treated as receiving cash distributions of $50,000 ($10,000 cash plus $40,000 relief of liabilities). The distributions reduce Monica's basis to $10,000
b. The inventory takes a carryover basis to Monica of $6,000, and reduces her basis in MIP to $4,000
c. If this is a proportionate liquidating distribution, Monica recognizes a loss of $4,000, and her basis in the inventory will be $6,000. The inventory cannot be "stepped up" to absorb the $10,000 of basis remaining after the distribution. Because Monica has received only cash and inventory, she may claim the loss.
Answer and Explanation:
The matching of the accounting term with the definition is shown below:
1. Debit - it comes in the left side i.e. (i)
2. Expense: It decreases the stockholder equity also it contains the debit balance i.e. (d)
3. Net income: It is a statement that shows the expenses and revenue related transactions i.e. (g)
4. Ledger: It is the T-account in which the journal entries are posted i.e. (e)
5. Posting: The data is copied from journal to ledger we called as posting i.e. (f)
6. Normal balance: It is the side of an account in which the account increment is recorded i.e. (b)
7. Payable: It is a liability and it always a credit balance and shown in the balance sheet i.e (h)
8. Journal: In this the transactions are recorded i.e. (c)
9. Receivable: This is an asset and it has always a debit balance i.e. (a)
10. Owner equity: It is amount i.e. to be invested in the business also shows a difference between the total asset and total liabilities i.e. (j)
Answer:
Cash received from customers is $66,000.
Explanation:
Cash Received from Customers is determined by opening a Total Accounts Receivables T- Account as follows :
Total Accounts Receivables T- Account
<u>Debit :</u>
Opening Balance $13,000
Sales $62,000
Totals $75,000
<u>Credit:</u>
Closing Balance $9,000
Cash <em>(Balancing figure)</em> $66,000
Totals $75,000
Conclusion:
Cash received from customers is $66,000.
Answer:
Break-even point in units= 2,600
Explanation:
<u>To calculate the break-even point in units, we need to use the following formula:</u>
<u></u>
Break-even point in units= fixed costs/ contribution margin per unit
Fixed costs= $65,000
Contribution margin per unit= 50*0.5= $25
Break-even point in units= 65,000/25
Break-even point in units= 2,600