1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ugo [173]
2 years ago
12

Why do they say Accounting Equation is the basis for the preparation of statement of financial position in accordance to IFRS fi

nancial statement presentation ?​
Business
1 answer:
Luda [366]2 years ago
3 0

Answer:

The Statement of Financial Position (SFP) or Balance Sheet, shows the assets of the company on one side and then the way the funding that enabled these assets to be acquired on the other.

This is the basis of the Accounting equation which is:

Assets = Equity + Liability

One one side of the (SFP), you have the assets shown. These assets are added up to find the Net Total Assets.

The other side of the (SFP) will have the Equity and the liabilities listed. These are then added up too and they are to be equivalent to the amount of Assets.

This would therefore prove the equation that when you add up Equity and Liabilities, you get Assets.

You might be interested in
Gourmet Shop purchased cash registers on April 1 for $18,000. If this asset has an estimated useful life of five years, what is
algol13

Answer:

$17,400

Explanation:

Given that,

Purchased cash registers on April 1 = $18,000

Estimated useful life of asset = 5 years

Using straight line depreciation method,

Depreciation:

= (Original cost - Salvage cost) ÷ Estimated useful life

= ($18,000 - $0) ÷ 5

= $3,600 per year

Two months depreciation:

= Depreciation per year × (2 ÷ 12)

= $3,600 × (1 ÷ 6)

= $600

Book value of the cash registers on May 31:

= Original cost - Two months depreciation

= $18,000 - $600

= $17,400

7 0
2 years ago
As a financial manager for a very profitable manufacturer of specialty steel, Kurt has been asked to investigate sources of long
aleksklad [387]

Answer: True

Explanation:

He is planning to use the retained earnings that are the result of the net profit plus the accumulated of the previous year, this with the purpose of not paying interest for the financing of his investment, another way of making an investment and not generating interest is that they are obtained a new financing of capital by the shareholders, which will be capitalized to equity and will not require the payment of interest only from dividends according to the parties but definitely, the only way that an interest or a portion to be paid by part is not generated of investment is what.

8 0
3 years ago
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia
Sati [7]

Answer:

$148.3 million

Explanation:

Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet

Using this formula

Deferred tax liability=Total future taxable income × Tax rate

Let plug in the formula

Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%

Deferred tax liability=$593 million*25%

Deferred tax liability=$148.3 million

Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million

8 0
2 years ago
The dollar value of all goods and services produced annually in the united states is called _____________
Setler79 [48]
The gross domestic product is answer
5 0
2 years ago
The company's wacc is 10.5%. what is the irr of the better project? (hint: the better project may or may not be the one with the
Inessa05 [86]

The better the IRR, the better. but, a corporation may additionally decide on a mission with a decreased IRR as it has other intangible advantages, together with contributing to a larger strategic plan or impeding competition.

Solution:

NPV of Project S= -$1,000 +$895.03/(1+10.5%) + $250//(1+10.5%)^2 +$10//(1+10.5%)^3 +$5//(1+10.5%)^4 =25.49320776

IRR of Project S= -$1,000 +$895.03/(1+r%) + $250//(1+r%)^2 +$10//(1+r%)^3 +$5//(1+r%)^4 =0

IRR =12.80%

NPV of Project L = -$1,000+ $5/(1+10.5%) +$260/(1+10.5%)^2 + $420/(1+10.5%)^3 + $802.50/(1+10.5%)^4

=$67.01

IRR of Project L=

-$1,000+ $5/(1+r%) +$260/(1+r%)^2 + $420/(1+r%)^3 + $802.50/(1+r%)^4 =0

IRR =12.700%

Project L is better than Project S since L has higher NPV

IRR of Project L is 12.7%.

Learn more about IRR here:-brainly.com/question/28428807

#SPJ4

5 0
1 year ago
Other questions:
  • Donielle opened a revolving line of credit with a $4,000 credit limit. How much does she
    6·2 answers
  • What motivates companies like starbucks to expand into international markets with little perceived interest for their product?
    6·1 answer
  • ________ integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT sy
    11·1 answer
  • A CSR should not use email, newsletters, managers and other
    7·1 answer
  • The Fitting Department’s cost per equivalent unit for conversion cost for March was $6.01. How much conversion cost was assigned
    5·1 answer
  • Consider a no-load mutual fund with $390 million in assets and 15 million shares at the start of the year and with $440 million
    8·1 answer
  • Trudy’s monthly expenses are outlined in the chart below. Trudy’s job pays her $36,000 annually. Determine Trudy’s DTI (debt-to-
    13·2 answers
  • Make a list of entrepreneural activities in your own community?
    12·1 answer
  • The long-range strategic planning committee for the Lizard Clothing Company is composed of managers from engineering, R&D, p
    8·1 answer
  • A bond issue on June 1, 2016, has interest payment dates of April 1 and October 1. Bond interest expense for the year ended Dece
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!