2- Give two examples of two financial ratios that will be affected by this technique (SPE). Explain your answer.
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 1...
A: Hence, option 3rd and 4th is correct
Q: The Bankruptcy Code exempts (limited to a certain dollar amount) which type of property? jewelry fam...
A: Bankruptcy is a type of insolvency in which people who are unable to pay their debts seek relief fr...
Q: Which of the following are reasons why a company is involved in leasing to other companies? I. Inte...
A: Solution: Following are the reason due to which company is involved in leasing to other companies: 1...
Q: Prepare journal entries to record each of the following transactions. The company records purchases ...
A: Payment made = Purchases - discount amount Where, Discount amount (if payment made witin discount p...
Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks...
A:
Q: On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration...
A: Solution Working note - 1- NCI beginning 750000 NCI income 534750 NCI share dividend -28...
Q: On 1 November, 2016, Eastern Company wrote off an account receivable of HK$10,300 as worthless becau...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Which of the following are considered separate financial statements? a. Those presented by a parent...
A: Separate financial statements are a special class of financial statements that have to be prepared u...
Q: During the tax year ending on 30 June 2016, XYZ Ltd, a resident Australian company, received a frank...
A: In this question , we will calculate XYZ Ltd's tax payable or refundable for the 2016 tax year.
Q: Farah operates service apartment. She just received the 31 May 2020 bank statement from National Ban...
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with...
Q: Discuss the residual value of the leased asset. How does it impact the PV of rental payments compu...
A: Residual value is the estimated fair value of the leased asset at the end of the lease, and can be e...
Q: Suppose the first installment is to be made on December 31, 2021 instead, can Jackie declare his inc...
A: Installment sales is the sales which the company has made and as per terms of the sale that the paym...
Q: On September 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to t...
A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the c...
Q: 5 employees left. How much is the salaries expense in 20x3? *
A: No of employees 100 No o Shares option for each employee 1000 Shares Fair Value of share Op...
Q: Product W4 $16,000 $5,920 lle expenses xpenses for the entire company were $42,760.
A: Overall Break even point = total fixed cost/ weighted contribution Margin Overall Break even point ...
Q: The amortization of bond premium on long-term debt should be presented in a statement of cash flows ...
A: Solution: Under indirect method of statement of cash flows, operating activities section starts from...
Q: Teal Company, a major retailer of bicycles and accessories, operates several stores and is a publicl...
A: The financial statements are prepared on accrual basis hence we need to convert it into cash basis t...
Q: n a finance lease, the lessee records interest expense only. lease expense only. amortization expe...
A: Solution: Finance lease is the giving right to use the asset along with the buy option at the end of...
Q: On March 1, 2002, ABC Co. issued P700,000 of 10% bonds to yield 8%. Interest is payable semiannually...
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.
Q: 15. Acacia Corporation would like to market a new product at a selling price of Ph 15 per unit. Fixe...
A: Profit volume Ratio: When it comes to profit, the Profit Volume (P/V) Ratio is a measurement of the ...
Q: right-of-use asset is increased by lease prepayments made by the lessee and initial direct costs i...
A: Solution: Right to use asset is the lessee's right to use or operate a leased asset during the lease...
Q: 2. CVP analysis allows management to determine the relative profitability of a product by * Keeping ...
A: CVP Analysis is one of the cost volume profitability analysis which shows changes in profits level o...
Q: manufacturing company applies factory overhead based on direct labor hours. At the beginning of the ...
A: Solution: Applied overhead is the overhead which is applied to production based on predetermined ove...
Q: When Sheffield counted its inventory on June 30, it determined that there were 120 books with a tota...
A: Journal entry is a primary entry that records the financial transactions initially. The company woul...
Q: 27. Which of the following is an advantage of captive leasing companies over the other players in t...
A: Captive lease company: It implies to a leasing business that is operated and controlled by the subsi...
Q: Which of the following would be classified as a financing activity on a statement of cash flows? S...
A: Solution: Financing activity section of statement of cash flows reflects the net cash flows used to ...
Q: On January 1, 2022, BTS Company purchased as debt investments at amortized cost, P1,000,000 of JK Co...
A: Interest revenue is the amount of revenue earned as interest during the given period. Effective inte...
Q: Example 2-17 Nancy Seigle earns a monthly salary of $3,100 for a 35-hour week. For overtime she rece...
A:
Q: Prepare a CVP income statement assuming these changes have been made.
A: Income statement refers to a statement which shows the revenue and expense of the company of a parti...
Q: 4 Use the following to calculate pretax income (IBT): $ 5,000 Sales revenue Interest revenue 300,000...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: 2- What is the different between Account payable and Account receivable?
A: Accounts payable (AP) are money due by a company to its vendors, whereas accounts receivable are fun...
Q: 31. The classifications of a lease by the lessee are operating and finance leases. operating, sal...
A: A lease is a contract that describes the terms under which one party agrees to rent another party's ...
Q: Narcisco Publications established the following standard price and costs for a hardcover picture boo...
A: budget is prepared by the business in order to know expenses incurred and revenue earned by the busi...
Q: On January 1, 2021, ABC Corporation was authorized to issue 2 classes of stocks: 50,000 preference s...
A: Delinquent: Delinquency is a situation or condition when a party has failed to pay a scheduled liabi...
Q: The basic difference between a direct-financing lease and a sales-type lease is the allocation of ...
A: A lease is an agreement that describes terms and conditions. It is an agreement, where one party agr...
Q: Entries for Selected Corporate Transactions Morrow Enterprises Inc. manufactures bathroom fixture...
A: Stockholder's Equity - Stockholder' Equity includes Common Stock, Preferred Stock, Paid in Capital i...
Q: rchase a new car, the “stic
A: Here the purchase includes FOB destination.
Q: On 31 May 2022, Mars's closing inventory count was valued at a cost of $750,000. This included some ...
A: We know that general provision of valuation of inventory is "Inventory is valued at Cost of Net real...
Q: This problem has 4 questions. On December 1, 2018, AAA Corporation issued a five-year, non-convertib...
A: Given details: Face value of the bonds = P5,000,000 Issue price = P5,386,072 6-months Period = 5 yea...
Q: Question 3 The following are examples of operating cash flows, EXCEPT: O Lease payments O Licensing ...
A: Cash flow statement is the summary showing the cash receipts and payments in relation to financing, ...
Q: If the imputed charge is charge is 15% and Webb wants to achieve a residu target of P2,000,000, what...
A: Introduction:- The following formulas used to calculate as follows under:- Residual income = Net inc...
Q: Required: Prepare the journal entries on December 31, 2016, May 11, 2017 and June 12, 2017.
A: Journal entries refers to the official book of a company which is used to record the day to day tran...
Q: 80% investment in Sarah Company. The acquisition cost was equal to Piolo equity in Sarah net assets ...
A: The question is related to Consolidation. The details are as under Share of Piolo Company in Sarah ...
Q: In a statement of cash flows, the cash flows from investing activities section should report the a...
A: the assignment of accounts receivable. Financing activity a major repair to machinery charged to a...
Q: Complete the cost of sales section by supplying the missing amounts (A- J) IN THE BLANKS BELOW based...
A: Formulas used in cost accounting are: Goods available for sale = Merchandise Inventory Beginning + P...
Q: 2. Gabriela Company’s auditor discovered that the company inadvertently overstated ending Inventory ...
A: Inventory means the goods in which the business deals. Inventory should be valued correctly as it i...
Q: Question Six: If the cost of an item of inventory is $50, the current replacement cost is $45, and t...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Sp...
A: It is an arrangement between two parties in which one party (lessor) allows another party (lessee) t...
Q: National Inc. has been hit hard due to pandemic. The company’s analysts predict that earnings and d...
A: Answer) Formula: Price of share today = Next Expected Dividend/ (Cost of Equity – Growth rate) C...
Q: Stellar Industries and Pearl Inc. enter into an agreement that requires Pearl Inc. to build three di...
A: Journal entries (JE) refers to the entries which are recorded in the original or first book of accou...
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- Define the following "ratios" by using the appropiate mathematical expression . Give 1 sentence reason for it's use. P/E ratio Quick Ratio Debt RatioHow would you use financial statement analysis? Is there one ratio that you feel is more valuable than another?Return on Assets, or ROA, can be expressed as the product of two ratios. Which two?
- 1. Provide a Short-term Solvency Ratio Analysis based on D/E Ratio, Equity Ratio, and Debt ratio. 2. Provide a Long-term Solvency Ratio Analysis based on D/E Ratio and Debt Ratio.6. The relationship between two financial variables can be expressed in: * a) Pure ratio b) Percentage c) Rate or time d) Either of the above4. There is a difference in return on Total Assets and the return on Total Equity. a. What is the difference between the two? b. Which ratio of the two is normally higher?
- What is “benchmarking” and how is it used in financial ratio analysis? Provide an example.The return on equity will be <List A> and the debt ratio will be <List B> under Arrangement #2, as compared with Arrangement #1. Your answer must be supported with a solutionExplain an example how to calculate accounting rate of return.