Answer:
The correct option is C states that creditors have a higher position in the priority of claims.
Answer:
False.
Explanation:
When the investor does not have decision- making power in the business, his dividend payment process is not different from any other shareholder.
When profits are declared the company debits Retained Earnings (profits) for the divedend amount, and credited to Dividends Payable.
Dividend Payable is then debitted and Cash will be credited to show money has gone out.
Answer:
e. Vertical marketing system.
Answer:
Answer is the FCAC is greater than the TBC.
Refer below.
Explanation:
A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. If the cumulative actual cost is greater than the cumulative earned value, then: FCAC is greater than the TBC.
Answer:
False
Explanation:
The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.
For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.
Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.
