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2 years ago

One major advantage of limited liability is that it:________.

Business

1 answer:

Finger [1]2 years ago

3 0

Answer: c. shields the personal assets of owners from liability claims.

Explanation:

An advantage of limited liability is that it shields the personal assets of owners from liability claims.

For a limited liability company, it should be noted that the liabilities of the members in the company for the debts that are incurred are limited only to the investment of the members. Personal assets are not affected if the company first into debt.

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Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should

marysya [2.9K]

Answer: Prior period adjustment resulting from the correction of an error.

Explanation:

The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.

In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.

8 0

2 years ago

What is it called when the government uses some tool other than money to allocate goods?

erastovalidia [21]

A
Its rationing easily

7 0

2 years ago

Read 2 more answers

Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incu

fenix001 [56]

Answer:

156.6%

Explanation:

Given:

Cosi Company's Incurred over head for the next period = $830,000

Expected labor hours = 53,000

Cost of labor = $10.00 per hour

Thus,

Total labor cost = 53,000 × $10.00 = $530,000

Now,

the Cosi Company's predetermined overhead rate will be calculated as:

Predetermined overhead rate = Incurred overhead / Total labor cost

on substituting the respective values, we get

Predetermined overhead rate = ( $830,000 / 530,000 ) = 1.566

Predetermined overhead rate = 1.566 × 100% = 156.6%

4 0

3 years ago

If you are working on a highly energetic reaction, and you need to evacuate, what should you do

babunello [35]

The answer for this question is: Stabilize the reaction
Chemicals with highly energetic reaction will have more risk to create high-energy force if we somehow fail to contain it safely.
When you need to evacuate, this type of reaction could create an explosion, so it's really advised to stabilize the reaction first.

8 0

3 years ago

Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of

vlabodo [156]

Answer:

$10,620

Explanation:

Depreciation for Year 1 = 0.202 × $50,000

= $10,100

Depreciation for Year 2 = 0.323 × $50,000

= $16,150

Depreciation for Year 3 = 0.194 × $50,000

= $9,700

Depreciation for Year 4 = 0.125 × $50,000

= $6,250

Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250

= $42,200

Book value of machine as on date of sale:

= Purchase price - Accumulated depreciation

= $50,000 - $42,200

= $7,800

Selling price = $12,500

Gain on sale of machine = $12,500 - $7,800

= $4,700

Tax rate = 40%

Tax on capital gain = $4,700 × 0.40

= $1,880

Net proceeds on sale of machine:

= Selling price – Tax paid on capital gain

= $12,500 - $1,880

= $10,620

8 0

3 years ago