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Lemur [1.5K]
3 years ago
11

Identify which basic assumption of accounting is best described in each/some item(s) presented below:a) The economic activities

of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.b) Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effect of inflation.c) Walgreen Co. reports current and non-current classifications in its balance sheet.d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.
Business
1 answer:
masya89 [10]3 years ago
8 0

Answer:

a) The economic activities of FedEx Corporation are divided into 12-month periods for the purpose of issuing annual reports.

Periodicity principle: companies have to report their financial statements and operations over standard periods of time.

b) Solectron Corporation, Inc. does not adjust amounts in its financial statements for the effect of inflation.

Monetary unit: companies have to report their financial statements in a unit of valid currency.

c) Walgreen Co. reports current and non-current classifications in its balance sheet.

Going concern: companies are expected to continue operating in the future.

d) The economic activities of General Electric and its subsidiaries are merged for accounting and reporting purposes.

Economic entity: companies must report the transactions that involve them and their subsidiaries, but not the transactions that involve their owners or other companies.  

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Answer:

d.$56,000

Explanation:

From the text we get that the receiving team has 4 employees, that each one has an average salary of $35,000 per year, we mulitply that by the four employees and get that the receiving team costs $140,000 a year in wages, since there are no other costs in the process of counting, since the forklift is only used for receiving, that is not a counting expense, we just multiply the wages by the percentage of time of each activity, and counting is 40%

So:

140,00x40%= 56,000 dollars

So the cost of counting is 56,000 dollars a year.

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3 years ago
Which choice shows the stages of the business cycle in the correct order?
saul85 [17]

The correct answer is C. Expansion, peak, trough, and contraction.

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Another name for business cycle is trade or economic cycle.

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4 years ago
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At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area w
steposvetlana [31]

Answer:

would be considered collusion.

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Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.

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When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:A. may make low-v
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Answer:A. May make low volume customers appear more profitable than they are.

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The allocation of fixed cost based on sales volume will increase cost allocated to large volume sales unit which will invariably reduce their profit and will reduce the cost allocated to low volume sales which may increase their profit.

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Beginning inventory                                      80 units.

Company Purchases                                     <u>480 units</u>

Total                                                                560 units

Sales                                                               <u>(360 units)</u>

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200 units remain in Ending inventory.

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