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
Schach [20]
2 years ago
8

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

be reported in Lore's 2005 financial statements as a Group of answer choices Prior period adjustment resulting from the correction of an error. Prior period adjustment resulting from the change in accounting principle. Adjustment to retained earnings for an accounting principle change. Component of income after extraordinary item.
Business
1 answer:
marysya [2.9K]2 years ago
8 0

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.

You might be interested in
During 2016, Rao Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on
Over [174]

Answer:

$319,000

Explanation:

The computation of the liability is shown below:

= Total expenses in three year - actual warranty expenditure

where,

Total expenses in three years = Total sales × total percentage of sales

                                                = $6,200,000 × 9%

                                                = $558,000

And, the actual warranty expenditure is $239,000

Now put these values to the above formula  

So, the value would equal to

= $558,000 - $239,000

=  $319,000

6 0
3 years ago
suppose that there are no crowding out effects and the mpc is .9. by how much must the government increase expenditures to shift
user100 [1]

Answer: The answer is $ 1 billion.

Explanation:

MPC stands for the marginal propensity to consume.

If MPC is 9 it implies that the multiplier is 10 i.e 1/(1-0.9). The rise in aggregate demand is equal to multiplier times change in government expenditures so to boost aggregate demand by 10 billion dollar government has to increase expenditure by Dollar 1 billion.

7 0
3 years ago
You run a manufacturing facility that makes roller skates. Fixed monthly cost is $50,000 in mortgage, $3,000 per employee on ave
Marysya12 [62]

Answer:

At producing 14,286 skates

Explanation:

3 0
3 years ago
If there is a basic conflict between the individual's expectations and the reality of working in an organization, the employee i
ANTONII [103]

Answer:

C) encounter

Explanation:

The socialization process is the process of learning to be a part of society and individual learning by understanding social norms, values, and expectations of the society to be a productive member of society.

Encounter stage of socialization is the stage at which individuals enter the corporate for the first time and realized how well expectations is matching the reality within the corporate culture. It is the time to control the emotion and learn to be part of organization.

8 0
3 years ago
A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6000 installed will last 3 ye
Kamila [148]

Answer: $7,000

Explanation:

The book value of the pump is the same as the value stated by the accountants.

The accountants are skilled in the field and most probably used accounting assessment techniques which were based on certain assumptions by accounting bodies so their valuation of the pump is to be considered the book value.

8 0
3 years ago
Other questions:
  • The 2012 box office receipts for the movie The Avengers were $1,515.8 million. By way of comparison, the 1977 receipts for Star
    7·1 answer
  • (a) What factors determine a
    7·1 answer
  • The following data were reported by a corporation: Authorized shares 24,000 Issued shares 19,000 Treasury shares 5,500 The numbe
    11·1 answer
  • What is the taxable amount of social security income reported on the tax return if a single taxpayer's income included only $9,4
    11·1 answer
  • A _____ is a form of business ownership that is considered to be separate from its owners or stockholders.
    8·1 answer
  • Transfer prices are _____. A. costs of the segment producing the product or service B. revenues of the segment acquiring the pro
    6·1 answer
  • Electronic media have changed the way employers select qualified candidates. Applicant tracking systems (ATS) are often the firs
    9·1 answer
  • Identify whether you think you may or may not become an entrepreneur and launch your own
    8·1 answer
  • Select the examples that best demonstrate likely tasks for Administration and Information Support workers. Check all that apply.
    8·2 answers
  • Identify two possible reasons for unemployment​
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!