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3 years ago

Consider the following comments about absorption- and variable-costing income statements:

Business

1 answer:

Lostsunrise [7]3 years ago

7 0

Answer:

E) I, II, and III.

Explanation:

Variable costing can be regarded as a concept of managerial accounting cost

whereby during the period of producing the product there is incurred

manufacturing overhead.

Absorption costing income statement, utilize absorption costing when creating income statement. The income statement focus on the cost through sectioning of cost into period cost and product.

It should be noted that

I. A variable-costing income statement discloses a firm's contribution margin.

II. Cost of goods sold on an absorption-costing income statement includes fixed costs.

III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.

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A savings account that pays interest every month is said to have a _______ interest period.

LuckyWell [14K]

A savings account that pays interest every month is said to have a quarterly interest period.

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3 years ago

Read 2 more answers

On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eig

spin [16.1K]

Answer:

The answer is $10,800

Explanation:

Straight line method of depreciation is:

Cost - residual value/number of useful life

Cost - $62,000

Residual value - $8,000

Number of years - 5years

=62,000 - 8,000/5

=57,000/5

$10,800.

Therefore, $10,800 will be charged every year.

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3 years ago

Two foreign companies want to trade shares of their stock on u.s. stock exchanges. one company follows ifrs but the other compan

Svetach [21]

Answer;

-A foreign company that wants to have their shares traded on U.S. stock exchanges who uses accounting practices that comply with IFRS

Explanation;

Financial Accounting Standards Board (FASB) is the primary accounting standard-setting body in the United States. Generally accepted accounting principles (GAAP) is a set of accounting standards that have substantial authoritative support and which guide accounting professionals.

-FASB goal is to provide leadership for public companies in establishing and improving the accounting methods used to prepare financial statements. The FASB has the authority to set, but not enforce, accounting standards. Enforcement falls under the jurisdiction of the SEC. The FASB takes recommendations from the SEC and the AIPA when devising or improving standards; however, it is not required to.

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3 years ago

Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon

AfilCa [17]

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

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3 years ago

A _____________ is a company that has a proven business model and is willing to sell the rights to use the business model to oth

scoundrel [369]

Answer: Franchise

Explanation: In simple words, a franchise refers to an arrangement under which one entity allows other entity to use its business models, procedures and intellectual properties etc, in return of any loyalty or other such benefit.

This is a common arrangement nowadays and is usually used by the organisations to operate their business globally.

Hence from the above we can conclude that the correct answer is franchise.

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3 years ago