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.
| The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. Provided money can earn interest, any amount is worth more the sooner it is received (“Time Value of Money,” n.d.). | Provide a real-world example for the time value of money. | An example would be depositing money into a savings account now and letting it earn interest. This amount of money will be worth more later because it will earn interest.
Due to the lack of substance of a patent and the long term benefit a patent can provide, a patent is classified as an intangible asset for accounting treatment. FASB Accounting Standard Codification subtopic 350 discusses accounting for intangible assets. The costs associated with an intangible asset are amortized over the useful life of the asset. The useful life is determined by the expected period of time the asset is expected to contribute to future cash flows of the reporting entity (ASC 350-30-35-2). Legal or contractual obligations can also help determine the useful life of an intangible asset.
How does the change in accounts payable plus the change in accrued liabilities per the balance sheet compare to the amount reported on the cash flow statement? Shouldn’t these be the same? The change in accounts payable+change in accrued liabilities on the balance sheet is greater than the change on the cash flow statement. It does seem that they should be the same in a more simple case. However, this case is far from simple as shown by the answer to requirement 9.
(0.5 points) Simple interest is gained only on the principal amount of an account. What is compound interest? (0.5 points) Compound interest is interest that is added to the principal in the account, so that the interest you receive starts to generate its own interest. What is the time value of money? (0.5 points) The time value of money is the assumption that money is worth more the sooner it is received.
Problem 3.2 A – How does the income statement differ from the one presented in Exhibit 3.1 The largest difference between income statement for this question in compared to Exhibit 3.1 B – Did Best Care spend $367,000 on new fixed assets during the fiscal year 2011? If not, what is the economic rationale behind its reported depreciation expense? No, they were not new fixed assets for 2011. In accordance with GAAP, Best Care would derive by taking the historical cost, less the salvage value and dividing by the life expectancy in years. In addition it is considered a non-cash expense since the actual payment could have occurred many years before the expense is calculated.
Quick ratio Current ratio measures the current assets to be turned into cash to meet its debts in one year. Quick ratio is a more immediate measure of liquidity to obtain the cash. Again, Premier Investments Ltd dropped sharply on quick ratio from 3.48 to 1.40. However, David Jones Ltd only got 1.29and 1.18 for quick ratio. It is a bad signal for David Jones Ltd that is lower than 1.
C. Points paid in the form of prepaid interest on a refinance are deductible over the life of the loan. D. None of the above statements is correct. 71. Which of the following statements regarding the break-even point for paying discount points in order to get a lower interest rate on the loan is correct? A All else equal, the break-even point for paying points on an original mortgage is longer than the break.
H&R Block will charge a convenience fee to take the tax preparation fee out of the person’s tax refund. You don’t get your refund any sooner like you do with the RALS but you don’t have to pay for the fees that day. They are accused of targeting the working poor and minorities with these services as they promote a quicker way of getting tax refunds at the expense of the borrower. These services are charging annual interest rates of more than 100% when you add in all the fees including finance charges, administrative fees, and check processing fees. The named plaintiffs Anthony Johnson and Phyllis Robinson say H&R Block "aggressively" marketed its loans at "exorbitant triple-digit interest rates to working poor and minorities" with "finance charges, that when properly calculated in accordance with the Truth in Lending Act, often exceeded 100 percent
If every penny lost was recovered then you would have lot of money. So why do we still choose to let them fall to the bottom of our bags, or in between the car seats, or the bottom of a junk drawer without the slightest care? Pennies play a big role in our currency, and should not be eliminated. Pennies are worth more than people seem to think. Yes, the penny is only worth one cent.