Under the AICPA Code of Professional Conduct, a Certified Public Accountant (CPA) may express an unmodified opinion on financial statements that contain a departure from promulgated Generally Accepted Accounting Principles
(GAAP) if they can demonstrate that due to unusual circumstances, the financial statements would be misleading if the departure were not made.
An example of an unusual circumstance that could justify such a departure from GAAP is new legislation. When new legislation is passed, the financial statements must reflect the implications of the legislation.
In some cases, GAAP does not provide for the full implications of the new legislation, and a departure from GAAP is necessary in order to give a true and fair view of the financial statements.
An unusual degree of materiality is another example of an unusual circumstance that could justify a departure from GAAP. Materiality is the quantitative threshold that must be met in order for the information to be included in the financial statements.
When the degree of materiality is exceptionally high, it may be necessary to make a departure from GAAP in order to ensure that the financial statements accurately reflect the underlying economic events and transactions.
A theoretical disagreement with a standard promulgated by the Financial Accounting Standards Board (FASB) is also an example of an unusual circumstance that could justify a departure from GAAP.
In some cases, the CPA may have a disagreement with the FASB’s standard that is based on theoretical or philosophical grounds. In this case, the CPA may choose to make a departure from GAAP in order to reflect the disagreement.
Finally, conflicting industry practices is an example of an unusual circumstance that could justify a departure from GAAP.
Different industries may have different accounting practices, and when the CPA is presented with conflicting practices, they may choose to make a departure from GAAP in order to properly reflect the economic events or transactions in the financial statements.
In conclusion, there are several examples of unusual circumstances that could justify a departure from GAAP, including new legislation, an unusual degree of materiality, a theoretical disagreement with a standard promulgated by the FASB, and conflicting industry practices.
To know more about Accounting Principles here
https://brainly.com/question/28903748
#SPJ11
puffery visible in advertisements are based upon genuineness. objective claims. fairness. exaggeration. validity.
Puffery visible in advertisements are based upon exaggeration. Puffery visible in advertisements is usually based on exaggeration, and the claims may not be backed up by empirical evidence or data. It is, however, a legal marketing strategy that businesses may use.
Puffery is a legal term for a marketing method that involves making exaggerated or vague claims about a product or service. The aim is to entice consumers to purchase the product or service. In terms of genuineness, fairness, objective claims, and validity, puffery visible in advertisements does not adhere to any of these principles.Genuineness - Puffery is not genuine, and the claims made in the advertisement may be untrue or exaggerated. Puffery may not provide consumers with accurate information about the product or service.Objective Claims - Puffery visible in advertisements is subjective and based on personal opinion. It does not provide objective claims about the product or service.Fairness - Puffery is not fair since it is an exaggeration of the product or service's features, and it may mislead consumers.Validity - Puffery is not a valid form of advertising since it does not provide empirical evidence or data to support the claims made in the advertisement.Therefore, puffery visible in advertisements is not based upon genuineness, objective claims, fairness, or validity. It is based on exaggeration, which is a legal marketing strategy that businesses use to entice consumers to purchase their product or service.Learn more about Puffery: https://brainly.com/question/29518107
#SPJ11
certain firms, such as those in utilities or the pharmaceutical industry, are likely to experience significant economies of scale because:
Economies of scale occur when firms increase their output and experience lower average costs of production. This can occur in certain firms, such as those in utilities or the pharmaceutical industry, because of the significant investments and specialized skills required for these industries.
Utilities require large investments in infrastructure and highly-trained personnel in order to deliver reliable services to their customers. The more customers a utility company serves, the more efficiently it can utilize its resources and labor, resulting in a cost savings. In addition, the more customers a utility company serves.
In the pharmaceutical industry, significant investments are required in research and development in order to develop and produce new medications. Pharmaceutical companies benefit from economies of scale because larger production quantities result in lower average costs due to increased efficiency.
Know more about pharmaceutical industry here:
https://brainly.com/question/29668603
#SPJ11
during the integration process, lafargeholcim faced three of the most common barriers to integration. which of the following is not one of the obstacles it faced? a. conflicts in merging corporate cultures b. differing opinions on the leadership structure c. inadequate evaluation of the target d. too much diversification
During the integration process, LafargeHolcim faced three of the most common barriers to integration. Among conflicts in merging corporate cultures, differing opinions on the leadership structure, inadequate evaluation of the target, and too much diversification, the obstacle that it did not face is too much diversification. So, the correct option is D.
The integration process refers to the process of blending the cultures, operations, systems, and personnel of two or more organizations together. The objective of an integration process is to create a unified and more effective organization from the constituent entities.
The benefits that an integration process provides include economies of scale, improved competitiveness, enhanced market share, and access to new markets. However, the integration process is often accompanied by significant challenges, such as leadership conflicts and disagreements between staff, which can stifle the process.
LafargeHolcim faced three of the most common barriers to integration during the integration process: conflicts in merging corporate cultures, differing opinions on the leadership structure, and inadequate evaluation of the target. Too much diversification is not an obstacle they faced.
To know more about integration process, refer here
https://brainly.com/question/29676983#
#SPJ11
to calculate depletion expense, first determine the depletion per unit. depletion per unit can be calculated by taking (cost )/total units of capacity. multiple choice question. plus salvage value minus operating expenses plus operating expenses minus salvage value
The multiple-choice question's available answers are all incorrect. The depletion per unit formula is (cost of the resource) / (total units of resource capacity).
What is the depletion expense formula?The number of units of natural resources consumed is multiplied by the cost per unit to calculate depletion costs. The cost per unit is calculated by multiplying the overall cost of acquiring, searching for, and developing the natural resources by the anticipated quantity of units that will be extracted.
Which of the following must be considered when determining depreciation costs?To determine depreciation, you must understand: the price of the asset (asset basis), which includes the price of purchasing the item, shipping, installation, and training. The duration of the good (also called the recovery period) the salvage value after its useful life is over1.
To know more about depletion visit:-
https://brainly.com/question/29424795
#SPJ1
Answer: Minus Salvage Value
Explanation:
in a secondary offering, a member who acted as manager or co-manager cannot issue a research report on that company within how many days following the effective date? a 30 calendar days b 20 calendar days c 10 calendar days d 3 calendar days
In a secondary offering, a member who acted as manager or co-manager cannot issue a research report on that company within 10 calendar days following the effective date.
What is a secondary offering?
A secondary offering is a new financial instrument release in which shares of an already-issued stock are sold to the public for the first time. Secondary offerings are sold by firms to increase capital to meet business goals or by individual stockholders to liquidate their shares.
If a company has already held an IPO, it will issue additional shares in a secondary offering, increasing its outstanding shares. A secondary offering is usually made by institutional investors and major stockholders rather than the company itself.
To learn more about stockholders here:
https://brainly.com/question/18523103
#SPJ11
In its first year of operations, gomes company recognized $28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers. The company incurred operating expenses of $15,800. Of these expenses, $12,000 were paid in cash; $3,800 was still owed on account at year-end. In addition, gomes prepaid $2,400 for insurance coverage that would not be used until the second year of operations
These transactions will be reflected in the company's financial statements, including the income statement, balance sheet, and statement of cash flows, and will be used to analyze the financial performance.
In its first year of operations, Gomes Company recognized $28,000 in service revenue, out of which $22,000 was received in cash from customers, and the remaining $6,000 was still outstanding at year-end. The company incurred operating expenses of $15,800, out of which $12,000 were paid in cash, and the remaining $3,800 was still owed on account at year-end. Additionally, the company prepaid $2,400 for insurance coverage that would not be used until the second year of operations.
To summarize the financial statements for Gomes Company in its first year:
Service Revenue:
$28,000 recognized
$22,000 received in cash
$6,000 outstanding at year-end
Operating Expenses:
$15,800 incurred
$12,000 paid in cash
$3,800 still owed on account at year-end
Prepaid Expenses:
$2,400 prepaid for insurance coverage
learn more about financial statements here
https://brainly.com/question/28871574
#SPJ4
What type of contract is the dog training contract?
Multiple Choice
Bilateral and unenforceable.
Unilateral and express.
Bilateral and implied.
Bilateral and express.
Unilateral and implied.
The type of contract that is the dog training contract is bilateral and express.
What is a bilateral contract?Bilateral Contract: It is a legally binding agreement between two parties in which both parties agree to perform certain obligations or exchange something of value. A bilateral contract is a type of contract in which both parties exchange a promise to do something.
The dog training contract is bilateral in nature because it involves a mutual agreement between two parties: the dog owner and the dog trainer. Both parties agree to fulfill certain obligations in exchange for payment. It is express because the terms and conditions of the contract are explicitly stated in the agreement.
Learn more about Bilateral Contract here: https://brainly.com/question/29869984
#SPJ11
The private cost of producing a good will differ from the social cost:
A. when there is an externality, such as acid rain generated by the production of electricity.
B. when there is an externality, such as lower crime rates generated by the consumption of education.
C. when there are property rights, where individuals or businesses have exclusive use of their property.
D. when there is no externality, such as in the production of ice cream
A. when there is an externality, such as acid rain generated by the production of electricity.
When there is an externality, the private cost of creating a thing might be different from the social cost. Externalities are costs or benefits that are felt by a person not involved in the transaction. For instance, the manufacturing of electricity may result in acid rain, which is a harmful externality that has an impact on those who are not directly involved in the production of power. Only production and distribution costs are included in the private cost of producing energy. The negative externality of acid rain is included in the social cost of producing power, which must also be taken into account. As a result, producing energy has a larger societal cost than a private one; this discrepancy is referred to as the external cost.
learn more about social cost here:
https://brainly.com/question/24262274
#SPJ4
george heinrich uses 1,500 per year of a certain sub-assembly that has an annual holding cost of $45 per unit. each order placed costs george $150. he operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order. for this sub-assembly, find:
George Heinrich uses 1,500 per year of a certain sub-assembly. Its annual holding cost is $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive that order.
To find: Economic Order Quantity, Number of orders to be placed in a year, Reorder Point Calculation
Solution:
We know that,Economic Order Quantity (EOQ) = √((2DS) / H)
Where,
D = Annual Demand of unitsS = Ordering Cost per orderH = Holding Cost per unit per year∴ EOQ = √((2 × 1,500 × 150) / 45)= √10000
= 100 units
Number of orders to be placed in a year = Annual Demand / EOQ= 1500 / 100= 15 Orders/year
Reorder Point Calculation:
Reorder Point = (Lead Time demand) + Safety Stock
Where,
Lead time = time between placing the order and receiving it.Safety Stock = the extra amount of stock that is held in case demand increases or there is a delay in the delivery of the order.Lead time demand = Daily demand × lead time
= 1500/300 × 6
= 30 units
Safety Stock = (Maximum usage per day × Maximum lead time in days) - Lead time demand
= (1500/300) × 1 - 30
= 120 - 30
= 90
∴ Reorder Point = (Lead Time demand) + Safety Stock
= 30 + 90
= 120 units
The Economic Order Quantity is 100 units. The number of orders to be placed in a year is 15 Orders/year. The reorder point is 120 units.
Learn more about Reorder Point: https://brainly.com/question/14952739
#SPJ11
items a company intends to sell in the normal course of business, has in production for future sale, or uses currently in production, are all examples of what?
Items a company intends to sell in the normal course of business, has in production for future sale, or uses currently in production are all examples of inventory.
Inventory represents goods that a company holds for sale to customers or for use in its production processes. It is reported as a current asset on the company's balance sheet and is typically categorized as raw materials, work-in-progress, or finished goods.
Maintaining proper inventory levels is important for companies to ensure they can meet customer demand while also managing costs associated with holding inventory.
Learn more about business at: https://brainly.com/question/24553900
#SPJ11
Write the name of any five organic fertilizers and describe any one them.
One example of an organic fertilizer is compost. Compost is made from decomposed organic materials such as kitchen scraps, yard waste, and other biodegradable materials.
What is Fertilizers?
Fertilizers are substances added to soil or other growing mediums to provide essential plant nutrients that are deficient or absent in the soil. They are used to enhance the growth, yield, and quality of crops, and can be organic or inorganic in nature. Fertilizers contain essential plant nutrients such as nitrogen, phosphorus, and potassium, as well as other secondary and micronutrients that are important for plant growth and development. The use of fertilizers can help increase agricultural productivity and improve food security, but it is important to use them responsibly to minimize negative impacts on the environment.
Compost
Manure
Bone meal
Fish emulsion
Blood meal
Learn more about Fertilizers from the given link
https://brainly.com/question/27428418
#SPJ9
cullumber company produces golf discs which it normally sells to retailers for $7 each. the cost of manufacturing 20,200 golf discs is: materials $ 10,100 labor 29,088 variable overhead 22,018 fixed overhead 39,794 total $101,000 cullumber also incurs 4% sales commission ($0.28) on each disc sold. mcgee corporation offers cullumber $4.80 per disc for 4,800 discs. mcgee would sell the discs under its own brand name in foreign markets not yet served by cullumber. if cullumber accepts the offer, it will incur a one-time fixed cost of $5,030 due to the rental of an imprinting machine. no sales commission will result from the special order. assume there is sufficient capacity to accommodate the special order. (a) prepare an incremental analysis for the special order. (enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) reject order accept order net income increase (decrease) revenues $enter a dollar amount $enter a dollar amount $enter a dollar amount materials enter a dollar amount enter a dollar amount enter a dollar amount labor enter a dollar amount enter a dollar amount enter a dollar amount variable overhead enter a dollar amount enter a dollar amount enter a dollar amount cost of equipment rental enter a dollar amount enter a dollar amount enter a dollar amount net income $enter a total amount $enter a total amount $enter a total amount (b) should cullumber accept the special order? cullumber should select an option the special order .
Based on the incremental analysis, it is more beneficial for Cullumber to accept the special order, as it would result in an increase in net income of $8,442. Therefore, Cullumber should accept the special order.
Incremental analysis is a decision-making technique used in managerial accounting that evaluates the financial impact of a specific decision by comparing the expected outcomes of different alternatives. It involves examining the potential costs and benefits of a proposed change or decision and comparing them to the costs and benefits of the status quo or alternative choices. The goal is to determine the incremental effect of a particular decision on the overall financial performance of the organization.
Incremental analysis typically involves comparing the relevant costs and revenues associated with each alternative and considering factors such as the timing of cash flows, the level of risk involved, and the impact on other areas of the business.
Learn more about Incremental analysis: brainly.com/question/17215395
#SPJ11
consider the market for lattes. if scientists discover that steamed milk, which is used to make lattes, prevents heart attacks, what would happen to the equilibrium price and quantity of lattes
The discovery of the health benefits of steamed milk would result in an increase in the equilibrium price and quantity of lattes in both the short and long run. The increase in price would be partially offset by the lower cost of production for lattes, and the increase in quantity would be driven by the increased demand for lattes.
The discovery that steamed milk prevents heart attacks would have a significant impact on the equilibrium price and quantity of lattes. In the short run, the demand for lattes would increase significantly, as more people become aware of the health benefits of steamed milk.
In the long run, however, the effects would be more significant. The increased demand for lattes would cause the equilibrium price to rise and the quantity of lattes to increase beyond what would be expected in the short run. This is because, with more people aware of the health benefits of steamed milk, more people would be willing to purchase lattes at a higher price.
Know more about equilibrium price here:
https://brainly.com/question/28527601
#SPJ11
bries corporation is preparing its cash budget for january. the budgeted beginning cash balance is $18,600. budgeted cash receipts total $186,000 and budgeted cash disbursements total $189,200. the desired ending cash balance is $30,600. to attain its desired ending cash balance for january, the company should borrow: group of answer choices $0 $15,200 $30,600 $46,000
The company should borrow $15,200 to attain its desired ending cash balance for January.
A corporation is a type of business structure that is owned by shareholders or stakeholders. Corporations can earn money, be taxed, and have their own legal standing apart from their owners. Shareholders in corporations, who may or may not work for the company, are usually not personally responsible for the company's debts or legal issues.
Here, the budgeted beginning cash balance is $18,600, budgeted cash receipts are $186,000, budgeted cash disbursements are $189,200, and the desired ending cash balance is $30,600.
To calculate how much the company should borrow: Expected ending cash balance: Beginning cash balance + Cash Receipts - Cash Disbursements = Expected cash balance. Therefore, the expected cash balance for the company can be calculated as: 186,000 - 189,200 + 18,600 = 15,400.
The expected cash balance is $15,400, which is less than the desired ending cash balance of $30,600. As a result, the company must borrow the difference between the two figures:$30,600 - $15,400 = $15,200. Hence, the company should borrow $15,200 to attain its desired ending cash balance for January.
To know more about company , refer here
https://brainly.com/question/29354835#
#SPJ11
for managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass. group startstrue or false
False . Managers who reason at stages 2 and 3 are more likely to take a utilitarian approach to their ethical decision-making and focus on the outcomes for the organization rather than their own personal rewards, recognition, or compliance with the company's rules.
At these stages, the manager is likely to weigh the costs and benefits to the organization and make a decision that maximizes the good for the organization. They are likely to consider the impact of their decision on stakeholders, and focus on producing a result that is fair and has the least negative impact on people, the environment, and other stakeholders.
Know more about Stakeholders here
https://brainly.com/question/30463383#
#SPJ11
which accounting error category would improper accounting for unrealized gains and losses on investments in debt and equity securities be classified as? group of answer choices other comprehensive income. revenue recognition. expense recognition. equity.
The accounting error category that improper accounting for unrealized gains and losses on investments in debt and equity securities would be classified as is Other Comprehensive Income (OCI).
Unrealized gains and losses refer to the profits or losses that an investor has yet to realize because they are only paper profits or losses. These unrealized gains and losses may be recorded in the balance sheet or in a separate financial statement referred to as Other Comprehensive Income (OCI).
Accounting for unrealized gains and losses on investments in debt and equity securities should be recorded in Other Comprehensive Income (OCI) because the gains or losses are not realized, that is, they are not yet recognized in the income statement.
Other Comprehensive Income (OCI) is an income statement component that reflects gains and losses that do not yet appear in the income statement. OCI is a term used in accounting to describe gains or losses on transactions or investments that are recognized outside of traditional earnings. OCI represents changes in equity that result from any financial activity outside of the company's common business operations.
Know more about Comprehensive Income here:
https://brainly.com/question/14814430
#SPJ11
there are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. one such example of a good that experienced this transition is a crt television, also known as a tube television. in the 1980s, more income for a household usually resulted in more crt tvs being purchased. today, more crt tvs are purchased by households that have experienced a reduction in income. why does this happen? group of answer choices households have usually purchased enough tvs so income has little impact the crt tv becomes a normal good because the good becomes perceived as being of a lower quality than a flat-screen tv the crt tv becomes an inferior good because as a consumer receives more purchasing power, they purchase more of the product the crt tv becomes an inferior good because the good becomes perceived as being of a lower quality than a flat-screen tv
Goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good happens because: the good becomes perceived as being of a lower quality than a flat-screen TV.
In the 1980s, households usually purchased more CRT TVs as more income was available. Nowadays, however, as households' purchasing power decreases, they purchase more CRT TVs. The same commodity has seen its economic status shift from being a normal good to an inferior good over time. Thus, the commodity is an inferior good, which is why it is now seen as cheaper and purchased more as income decreases. The commodity becomes an inferior good due to a change in consumer behavior.
Consumers may perceive the good as inferior, leading to a decrease in demand as their income increases. Alternatively, the good may be viewed as superior, resulting in an increase in demand as income decreases. If the good is viewed as superior, it becomes a normal good, whereas if it is viewed as inferior, it becomes an inferior good.
To know more about Goods refer to-
brainly.com/question/29426090#
#SPJ11
Complete question
There are a number goods that over time, for a variety of reasons, transition from being a normal good to an inferior good or from being an inferior good to a normal good. one such example of a good that experienced this transition is a crt television, also known as a tube television. in the 1980s, more income for a household usually resulted in more crt tvs being purchased. today, more crt tvs are purchased by households that have experienced a reduction in income. why does this happen?
if all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be
If all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be an increase in efficiency. This is because efficiency is calculated as the ratio of output to input.
What is the efficiency?The resources used in production include things like labor, materials, and equipment. If these resources are increased by 20 percent, it means that there is more of each resource available to be used in the production process. This can lead to an increase in the amount of output that can be produced.
Output, on the other hand, is the amount of goods or services that are produced in a given time period. If output increases by 20 percent, it means that more goods or services are being produced with the same amount of resources. This can also be an indication of increased efficiency.
In summary, if all resources used in the production of a product are increased by 20 percent and output increases by 20 percent, then there must be an increase in efficiency. This is because efficiency is calculated as the ratio of output to input.
Learn more about Efficiency here:
https://brainly.com/question/30280642
#SPJ11
paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. what is the total deductible amount of these expenditures?
Paris can deduct the total amount of her expenditures for her talent agency as a sole proprietorship. The total deductible amount is the sum of the individual expenses.
Here are the expenses Paris incurred this year:
- Advertising expenses: $2,500
- Office supplies: $750
- Legal and professional fees: $3,500
- Office rent: $4,000
- Travel expenses: $1,250
Total deductible amount = $2,500 + $750 + $3,500 + $4,000 + $1,250 = $11,500
As a sole proprietorship, Paris can deduct the full amount of her expenditures for the year. This means that her total deductible amount for her talent agency is $11,500. By deducting these expenses, Paris can reduce her overall tax burden and increase her net profits.
To deduct her expenses, Paris must complete Form 1040, Schedule C. This form is used to report income and expenses from a sole proprietorship. She should enter the total amount of expenses she incurred during the year on line 22, “Total Expenses.”
It is important for Paris to keep accurate records of all of her expenses for her talent agency. This includes receipts, invoices, and any other documents that prove the expenses were incurred. These documents will help her if she is audited by the IRS.
By deducting all of her eligible expenses, Paris can reduce her overall tax burden and maximize her net profits.
For more about expenditures:
https://brainly.com/question/30063968
#SPJ11
the debt ratio indicates the percentage of: multiple choice total liabilities classified as current. total assets financed by long-term mortgages. revenue consumed by interest expense. total assets financed by creditors.
The debt ratio indicates the percentage of total assets financed by creditors.
What is the Debt Ratio?
Debt ratio is a financial ratio that compares a company's total liabilities to its total assets. The debt ratio determines the percentage of a company's assets that are financed by creditors.
In other words, the debt ratio is the company's debt-to-assets ratio. In terms of financing, it is critical to assess the debt-to-asset ratio since it demonstrates how much debt is being used to finance the company's assets.
Hence, it is vital to maintain the debt ratio to keep the firm's financial health in check. Therefore, the correct answer is option D, "total assets financed by creditors."
To learn more about debt ratio, refer below:
https://brainly.com/question/14553933
#SPJ11
actual overhead totaled $72,000. during the year, the company produced 8,500 units of product using 14,000 machine hours and 60,000 direct labor hours. how much manufacturing overhead was allcoated to the product during the year?
The manufacturing overhead allocated to the product during the year was $73,500.
The manufacturing overhead that was allocated to the product during the year can be found by using the predetermined overhead rate. The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead cost by the estimated activity level.
Once the predetermined overhead rate is calculated, it can be used to allocate manufacturing overhead to each product produced during the year. Here's how to calculate the manufacturing overhead allocated to the product during the year.
Calculate the predetermined overhead rate. Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated activity level Predetermined overhead rate = $84,000 ÷ 16,000 machine hours Predetermined overhead rate = $5.25 per machine hour
Calculate the manufacturing overhead allocated to the product during the year. Manufacturing overhead allocated = Predetermined overhead rate x Actual activity level Manufacturing overhead allocated = $5.25 per machine hour x 14,000 machine hours Manufacturing overhead allocated = $73,500Therefore, the manufacturing overhead allocated to the product during the year was $73,500.
for more such questions on manufacturing
https://brainly.com/question/1082619
#SPJ11
he three types of accounting changes are a change in multiple select question. accounting estimate. fiscal years. reporting entity. corporate structure. accounting principle.
The three types of accounting changes are a change in accounting estimate, change in fiscal years, and change in reporting entity or corporate structure. The correct answer is fiscal years, reporting entity, corporate structure
A change in accounting estimate is when the estimate used to value an asset or liability is adjusted due to the company having additional information or changing the estimate used to value an asset or liability. A change in fiscal year is when the company changes the length of the year for reporting purposes, such as extending it to a 13 month period instead of 12 months.
A change in accounting estimate is when the company’s accounting practices are changed due to new information or changing the estimate used to value an asset or liability For example, if a company purchases a building, they may make an estimate on the building’s value at the time of purchase. If the company later discovers that the building’s value has changed, they must make an accounting change in order to accurately reflect the asset’s value.
A change in fiscal year is when the company changes the length of the year for reporting purposes. This type of change may be necessary due to changes in a company’s business cycle, such as if the company experiences a sudden increase or decrease in revenue or expenses. For example, a company may change from a 12-month reporting period to a 13-month period in order to more accurately capture their financial performance.
In conclusion, the three types of accounting changes are a change in accounting estimate, change in fiscal years, and change in reporting entity or corporate structure. Each of these types of changes requires the company to update their financial statements in order to accurately reflect their new legal or financial position.
To learn more about accounting changes here:
https://brainly.com/question/29486363#
#SPJ11
Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs
The Statute of Frauds is a law that requires certain types of contracts to be in writing and signed by the parties in order to be enforceable.
It varies depending on the jurisdiction, but typically includes contracts for the sale of goods over a certain value, contracts for the transfer of real property, and contracts that cannot be performed within one year.
In this scenario, since the contract is for the sale of an apartment, it is likely governed by the Statute of Frauds. However, the misrepresentation by Lyra regarding the commission is an issue of fraud and not necessarily related to the Statute of Frauds. Moe may have a legal claim for fraud against Lyra due to her misrepresentation of the commission, which could potentially void the contract or lead to damages being awarded to Moe.
Learn more about Statute of Frauds at: https://brainly.com/question/28027511
#SPJ11
regal, incorporated, currently has an eps of $2.34 and an earnings growth rate of 6.5 percent. the benchmark pe ratio is 26. what is the target share price five years from now?
The target share price of Regal, Incorporated, after five years will be $103.74.
The EPS (Earnings per share) of the company is $2.34. The earnings growth rate of the company is 6.5%.The benchmark P/E ratio is 26. To find the target share price, we have to use the price-earnings ratio formula which is given below.
P/E Ratio = Market price per share / Earnings per share. We can calculate the market price of the share using the above formula, Market price per share = P/E Ratio × Earnings per share. Market price per share = 26 × 2.34 = $60.84. Now, to find the target share price after five years, we have to calculate the expected earnings per share after five years.
The expected earnings per share after five years can be calculated using the formula given below.Expected EPS = EPS * (1 + Earnings growth rate) ^ Number of years. Expected EPS = 2.34 * (1 + 6.5%) ^ 5 = 2.34 * 1.407 ^ 5 = $3.99.
Now, we can calculate the target share price five years from now using the formula given below. Target Share Price = P/E Ratio * Expected EPS. Target Share Price = 26 * $3.99 = $103.74, Therefore, the target share price of Regal, Incorporated, after five years will be $103.74.
To know more about share price , refer here
https://brainly.com/question/30974050#
#SPJ11
since the merger, lafargeholcim has seen a rapid decline in its performance, so a new ceo was brought in. he immediately announced plans to focus on fewer markets, among other new directives. this is indicative of which form of restructuring? a. downsizing b. downscoping c. outsourcing d. downgrading
The form of restructuring indicative of the situation in which LafargeHolcim, after the merger, saw a rapid decline in its performance and subsequently brought in a new CEO who announced plans to focus on fewer markets, among other new directives is downscoping. So, the correct answer is B. downscoping .
Downscoping is a restructuring strategy in which a firm divests some of its businesses or subsidiaries, thereby concentrating on a smaller set of core businesses or subsidiaries. A company that employs this strategy may reduce its product lines, lay off employees, or sell assets or entire business divisions.
The objective of downscoping is to streamline a company’s operations by reducing the number of businesses, products, and markets that it has to deal with, which could help to improve the performance of the core businesses while reducing costs incurred by the other, non-core businesses.
Downscoping helps to redirect a company’s focus towards its core businesses or strengths, which could lead to increased efficiency and profitability. Therefore, the correct answer option is B. downscoping .
To know more about restructuring, refer here
https://brainly.com/question/28153769#
#SPJ11
an organization that effectively competes in the product market is able to sell its goods and services at a quantity price that will
An organization that effectively competes in the product market is able to sell its goods and services at a price that will bring a sufficient return on investment (ROI).
In economics, the quantity price is a term used to describe a company's fixed prices for bulk items. The quantity price is offered to customers who buy goods in bulk, and it is usually a lower cost than the standard unit cost.
Quantity discounts are frequently used by firms to boost sales and revenues. Bulk pricing is a type of volume discount that firms provide to consumers who purchase in larger amounts.
To achieve a sufficient ROI, the organization must have a clear understanding of its target market and the price points that will be acceptable to its customers.
This may involve conducting market research to identify customer preferences and willingness to pay, as well as analyzing the pricing strategies of competitors.
Thus, an organization that effectively competes in the product market is able to sell its goods and services at a price that will bring a sufficient return on investment (ROI).
Learn more about return on investment (ROI) here:
https://brainly.com/question/11913993
#SPJ11
why is advertising for a single firm that currenty makes a considerable profit with no competitors (yet) in a market a possible attempt to discourage new entrants into the market?
The reason advertising for a single firm that currently makes a considerable profit with no competitors (yet) in a market is a possible attempt to discourage new entrants into the market is that the advertising helps to create a barrier to entry.
By advertising heavily, established firms can create a perception of quality, reliability, and trust that new entrants find difficult to match or surpass. This can make it harder for new entrants to gain market share and establish themselves as legitimate competitors.
Advertising can also help to create economies of scale that make it difficult for new entrants to match the production, distribution, and marketing costs of established firms. Hence, advertising for a single firm that currently makes a considerable profit with no competitors (yet) in a market is a possible attempt to discourage new entrants into the market.
To know more about advertising , refer here
https://brainly.com/question/3163475#
#SPJ11
if consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when income increases to $43,000, the mpc is
The correct answer is MPC=0.8.
The Marginal Propensity to Consume (MPC) is the ratio of the change in consumption to the change in income. This suggests that when income rises by one unit, consumption rises by a certain fraction of that unit.
The following formula shows how to calculate MPC:
MPC = Change in consumption/Change in income
Given: When income is $35,000, consumption is $30,000.
When income increases to $43,000, consumption rises to $36,000.
Therefore: Change in income = $43,000 - $35,000 = $8,000
Change in consumption = $36,000 - $30,000 = $6,000
Substituting the given values in the formula: MPC = $6,000/$8,000MPC = 0.75
Therefore, the MPC is 0.75 or 0.8.
to know more about Marginal Propensity to Consume refer here:
https://brainly.com/question/19089833#
#SPJ11
all other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. true/false
The reason is that compound interest includes interest on the interest, while simple interest does not which is False.
All other factors being equal, the compound interest method will typically result in a higher amount of earned interest than the simple interest method over the course of a year. This is because with compound interest, the interest earned is added to the principal, resulting in a larger base on which to calculate interest in subsequent periods. With simple interest, the interest earned is not added to the principal, so the interest earned each period remains the same.
Interest is the cost of borrowing money or the compensation received for lending money. There are two methods used to calculate interest: simple interest and compound interest. Simple interest is calculated as a percentage of the original principal amount borrowed or invested, and it remains the same throughout the life of the loan or investment.
The formula for simple interest is I = PRT, where I is the interest earned, P is the principal amount, R is the interest rate, and T is the time period. For example, if you borrow $1,000 at a simple interest rate of 5% per year for one year, you will owe $1,050 at the end of the year.
Learn more about compound interest: https://brainly.com/question/28020457
#SPJ11
when the price of a bottle of sunscreen decreases from $14.00 a bottle to $12.00 a bottle, what is the change in total revenue? $ c. when the price of a bottle of sunscreen decreases from $10.00 a bottle to $6.00 a bottle, what is the change in total revenue? $ d. when the price of a bottle of sunscreen decreases from $4.00 a bottle to $2.00 a bottle, what is the change in total revenue?
The final answer for the total revenue is $100, $-100 and $100 for the price of a bottle of sunscreen decreases from $14.00 a bottle to $12.00 a bottle, the price of a bottle of sunscreen decreases from $10.00 a bottle to $6.00 a bottle and the price of a bottle of sunscreen decreases from $4.00 a bottle to $2.00 a bottle, respectively.
Here's the solution to all the questions:
Given,Initial price of a bottle of sunscreen = $14.00
New price of a bottle of sunscreen = $12.00
Change in total revenue = Initial revenue - New revenue
Now, we need to find out the initial revenue and new revenue for each question.
A)Initial price of a bottle of sunscreen = $14.00
Initial quantity of bottles of sunscreen = 100
Total revenue = Price * Quantity
= $14.00 * 100
= $1,400
New price of a bottle of sunscreen = $12.00
New quantity of bottles of sunscreen = 125
Total revenue = Price * Quantity
= $12.00 * 125
= $1,500
Change in total revenue = $1,500 - $1,400
= $100
B)Initial price of a bottle of sunscreen = $10.00Initial quantity of bottles of sunscreen
= 100
Total revenue = Price * Quantity
= $10.00 * 100
= $1,000
New price of a bottle of sunscreen = $6.00
New quantity of bottles of sunscreen = 150
Total revenue = Price * Quantity
= $6.00 * 150= $900
Change in total revenue = $900 - $1,000
= $-100
C)Initial price of a bottle of sunscreen = $4.00
Initial quantity of bottles of sunscreen = 100
Total revenue = Price * Quantity
= $4.00 * 100
= $400
New price of a bottle of sunscreen = $2.00
New quantity of bottles of sunscreen = 250
Total revenue = Price * Quantity
= $2.00 * 250
= $500
Change in total revenue = $500 - $400
= $100
Therefore, The change in total revenue when the price of a bottle of sunscreen decreases from $14.00 a bottle to $12.00 a bottle is $100.The change in total revenue when the price of a bottle of sunscreen decreases from $10.00 a bottle to $6.00 a bottle is $-100.The change in total revenue when the price of a bottle of sunscreen decreases from $4.00 a bottle to $2.00 bottle is $100.
Learn more about revenue: https://brainly.com/question/16232387
#SPJ11