Identify each CSTO from its description

Managerial accounting information for a company

Bad White [126]

Answer:

Correct answer is b. relates to subunits ot the entity and may be very detailed.

Explanation

Managerial accounting involves collecting, storing, analyzing, and reporting information about the operations, activities and finances of a business. These reports are generally used by the managers of a business, rather than by any external entities, such as shareholders or lenders. The purpose of this accounting is to facilitate manager from senior to line level to make informed decision.

So in order to run the business smoothly this information/accounting is required to be very detail and covering each and every aspect of the entity.

5 0

3 years ago

15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's

vodomira [7]

Answer:

$104,000

Explanation:

Note: <em>The full question is attached as picture below</em>

Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities

Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000

Fair value of net assets = $460,000

Purchase consideration paid = 12,000*$47

Purchase consideration paid = $564,000

Goodwill recognized = Purchase consideration - Fair value of net assets

Goodwill recognized = $564,000 - $460,000

Goodwill recognized = $104,000

7 0

2 years ago

At the beginning of Year 1, a company reported a balance in common stock of $164,000 and a balance in retained earnings of $64,0

blagie [28]

Answer:

Explanation:

The preparation of the statement of stockholder equity and balance sheet is presented below:

a. Statement of stockholder equity

<u>Particulars Common stock Retained earnings Total stock equity</u>

Beg balance $150000 $50,000 $200,000

Add: Addi shares $40,000 $40,000

Add: Net income $30,000 $30,000

Less: dividend -$10000 -$10000

Total $190,000 $70,000 $260,000

b. Balance sheet

Assets Amount

Cash $52,600

Supplies $13,400

Prepaid rent $24,000

Land $200,000

Total assets $290,000

Liabilities Amount

Account payable $9,100

Un-earned revenue $2,400

Salaries payable $3,500

Notes payable $15,000

Stockholder equity $260,000

Total liabilities & stockholder equity $290,000

6 0

2 years ago

Which of the following would not be reported as current liabilities on the balance sheet?

olga55 [171]

D. Accounts receivable

6 0

1 year ago

Bedekar, Inc., has an issue of preferred stock outstanding that pays a $3.40 dividend every year in perpetuity. If this issue cu

Ainat [17]

Answer:

i=4.84%

Explanation:

the key to answer this question, is to remember the model of return for a perpeuity dividend calculation:

$Value=\frac{1}{i-k}$

where value is the current stock price, i is the dividend yield and k is the growth rate, so applying to this particular case we have

k=3.4/91

k=3.74%

and solving i for the previous formula:

$91=\frac{1}{i-0.0374}$

$0.01098={i-0.0374}$

$i=4.84\%$

8 0

2 years ago