D. The seller's price to the buyer is fixed or determinable. Original AACSB: Analytic AICPA BB: Legal AICPA FN: Research Bloom's: Knowledge Difficulty: Medium 7-27 Chapter 07 - The Revenue and Collection Cycle 3. "Bill and Hold" refers to an arrangement where A. Sales are recorded but are not shipped. B.
Judgement Case 9-1 – Inventory costs; lower of cost or market; retail inventory method Requirement 1 Theoretically, Hudson should account for the warehousing costs related to its wholesale inventories as a part of inventory. All of the necessary costs associated with preparing, and in this case storing, items for sale are to be included in inventory. The key here is that the warehousing cost is related to a particular set of items and for that reason it is important to account for the warehousing cost with the inventory in order to satisfy the matching principle. The matching principle “requires that revenues and any related expenses be recognized together in the same period” (The matching principle). By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold.
The sum of the market or appraised values of identifiable assets acquired less the fair value of liabilities assumed exceeded the cost to Easton. After revaluing noncurrent assets to zero, there was still some “negative goodwill.” Proper accounting treatment by Easton is to report the amount as A. part of current income in the year of combination. B. a deferred credit and amortize it. C. an extraordinary gain. D. paid-in capital.
By having this documentation showing that they were monitoring their PAH levels on a regular basis and had documentation showing that their levels were within the allowable range, would have shown Mrs. Bates that Alumina had done it due diligence to be in compliance with the regulations. This documentation could have saved the company the expense of arbitration and the cost of the settlement. The Erehwon Reporter could have shielded themselves from the tort liability of libel defamation if they would have done some research on the pollution in Lake Dira before printing the story. They would uncovered that the PAH levels were elevated because of the additional traffic on the water ways and not from Alumina. Because of this information, they would not have move forward with the report accusing Alumina of being solely responsible for the
The nature of the contingency, b. An estimate of the possible loss or range of loss or a statement that such an estimate cannot be
2 .Decline Curve Analysis:- 2-1 Use and Application of Decline Curve Analysis:- Decline curve analysis results in confidence estimates of ultimate recovery by extrapolation of performance trends. It is used to determine the remaining oil reserves and the remaining production life for the cumulative production. Time is normally selected as independent variable for extrapolating purposes. The following variables (rate, pressure, water cut) must be a continuous function of the independent variable and change in some uniform manner. Reserves:- Reserves are estimated volumes of crude oil, condensate, natural gas, natural gas liquid, and associated substances anticipated
7-20 47. An NOL carryforward is used in determining the current year’s NOL. ANS: F An NOL carryforward is not used in determining the current year’s NOL. PTS: 1 REF: p. 7-21 48. The excess of nonbusiness capital losses over nonbusiness capital gains must be added to taxable income to compute the net operating loss of an individual.
Creating a budget will allow Guillermo to know the exact amount of money that he has to allocate to specific expenses. “Performance reports provide feedback by comparing results with plans and by highlighting variances, which are deviations from plans.” (Horngren at el. 2008, p. 13) Guillermo can use performance reports to determine if changes that he makes positively or negatively affect his bottom line. By using both budgets and performance reports Guillermo should be able to outline a plan that will balance company/organizational goals, personal goals, and maintain profitability. Ethics Influence Regulations and standards such as Generally Accepted Accounting Principles (GAAP), Foreign Corrupt
1. Elizabeth Royte’s question “For now, what should we be drinking?” is answered throughout the excerpt by saying that tap water is no better than bottled water. Although bottled water labels say their water comes from the best of the best types of filter, its often a lie and comes from the same type of water that comes through your tap water, according to Royte. She supports her conclusion throughout the whole excerpt with specific example and evidence. Although she has a water filter in her tap water, she believes it is almost the same without one.
Taxable Supply – is everything which is not exempt or outside the scope of VAT. It includes sales and purchases of most goods and services. There is three different rates that VAT can be charged. Business – For vat to apply the taxable supply must be made in the course or furtherance of a business carried on by a taxable