Identify the accounting assumption, accounting principle, or reporting constraint that mostappropriately justifies these procedures and practices. Use only one item per description.Choices:a. Full disclosure principleb. Time period assumptionc. Materiality constraintd. Cost principlee. Revenue recognition principlef. Conservatism constraintg. Matching principleh. Economic entity assumptioni. Monetary unitj. Going concernk. some other answer l as10. The cost of beverages taken home for the personal use of the owner is recorded as awithdrawal because of theprinciple.11. The local hamburger restaurant expenses all spatulas, french fry baskets, and othercooking utensils when purchased.12. Companies present sufficient financial information so that creditors and reasonablyprudent investors will not be misled.13. Resto Supplies, Inc. takes a P32,000 loss on a number of older ovens in its inventory; itpaid the manufacturer P107,000 for them but can sell them for only P75,000.14. A hotel receives advance payments of P2,500.000 from a conference organizer. This isnot a sale due to theprinciple.15. Hard Rock Cafe is a wholly owned subsidiary of Jollibee Foods Corporation., and HardRock Café's operating results and financial condition are included in the consolidatedfinancial statements of PepsiCo. (Do not use full disclosure.)

Solution Note : Dear student as per the Q&A guideline we are required to answer the first…

Answered: 10. The cost of beverages taken home…

10. The cost of beverages taken home for the personal use of the owner is recorded as a withdrawal because of the principle.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 15. The earned income credit is a refundable credit. True False

A: The earned income credit is a tax credit available to the low income taxpayers in United States.…

Q: 6. Which of the following is not determined by the shipping terms? a. When legal title or…

A: Free on Board (FOB) is a term used to indicate when the ownership of goods transfers from buyer to…

Q: Which clothing expenses are deductible and which ones are not? Provide reasons for both deductible…

A: The expense which is allowed to reduce from the gross taxable income is called as deductible…

Q: What amount should be presented as a deduction from cost of goods sold?

A: The GAAP principles require that the inventory should be valued at the lessor amount of its laid…

Q: Why should an individual not use an installment sale as opposed to a cash sale?

A: Under the normal method of accounting cash is collected from sale of goods or services and…

Q: A seller recognizes the amount of returns from right to return sales as a/an ________. Group of…

A: The question is asking about how a seller recognizes the amount of returns from right to return…

Q: Which of the following would not overstate current-period net income?a. Capitalizing an expenditure…

A: Net income: Net income refers to the income earned by the company after providing for all the…

Q: Payment must be probable in order for a compensated absence to be accrued. True False

A: The term "probable" is pivotal in the context of accruing liabilities, especially concerning…

Q: 4 Blossom Company includes 1 coupon in each box of soap powder that it packs, and 5 coupons are…

A: 3 Golden rules of accounting are Real account : As per real account rule we should what comes in…

Q: Required: Victoria's 2020 tax return was due on April 15, 2021, but she did not file it until June…

A: 1. Non Filing / Late Filing Penalty : 5 % per month ( or fraction there of ) on additional tax due.…

Q: Bodily injury and property damage liability policies protect an insured for Loses for which the…

A: Bodily injury and property damage liability policies protects the insured when insured is at fault…

Q: Which of the following is most likely to be reported as an accrued liability? Multiple Choice…

A: Accrued liability is a sort of obligation of an entity that the entity has not paid yet. In other…

Q: I need to know why is "increase in prepaid rent" deducted?

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Under what circumstances is it appropriate to recordgoodwill in the accounts? How should goodwill,…

Q: t of spoilage chargeable to Revenue is (recognized as expenses)?

A: Process Costing - Process costing is an accounting technique generally employed by businesses that…

Q: The expense for warranty costs is recorded in the period ________. A. when cash is paid to repair…

A: The warranty costs is recorded during the sale of the product. During the time of sale of a product…

Q: The following information was taken from the 20X1 financial statements of Eiger Corporation, a maker…

A: Cash flow from operating activities consists of cash flows (inflows and outflows) from day to day…

Q: A situation where money is left over after all obligation have been paid

A: The term obligations refer to any debt that is yet to be paid or any financial obligation that is…

Q: Ma1. On the Form 7202, in what section are the dates of work missed due to COVID-19 entered?…

A: As per IRS, Form 7202 is used for entering sick leaves and family leaves for certain self-employed…

Q: Which of the following represents amounts owed for goods, supplies, or services purchased? Group of…

A: The question is asking to identify the term that represents the amounts that a company owes for…

Q: why home ownership expenses can be itemized but expenses for renters cannot?

A: There are expenses which have been allowed by the tax authority over which the taxpayer can claim as…

Q: The PRIMARY function of an umbrella liability insurance policy is to provide coverage for • A.…

A: Umbrella Insurance is extra insurance that provides protection beyond existing limits of other…

Q: A dwelling unit is considered as used for personal purposes on any day that it is rented to someone…

A: A dwelling unit would be considered as that is used for the persoal purpose if it is rented to some…

Q: account, we will ____ it. A. Debit B. Credit

A: A contra asset account is a type of asset account with a balance that can be either negative or…

Q: Which of the following is not considered a type of compensatory damages? O Unjust enrichment Extra…

A: Unjust enrichment is not considered a type of compensatory damages. Compensatory damages aim to…

Q: What are some of the possible consequences should a home owner allow the policy to lapse?

A: If the policyholder of the property insurance fails to make multiple payments, then the homeowners…

Q: Mandarin Manufacturing Company uses a process cost system with FIFO method of costing to account for…

A: Forming Deptt Process A/c Particular Units Amounts Particular Units Amounts…

Q: uge to or loss of a dwelling and personal property of of g protects the beneficiary against the…

A: The objective of the question is to understand the various aspects of insurance and how it works. It…

Q: What is the fair market value of an item? a)the amount that a buyer would pay for the item under a…

A: The Fair Market Value (FMV) refers to the current price that an interested buyer in the open market…

Q: Are donation of goods considered an expense or cost of sale on statement of profit and loss or other…

A: Donation is a part of voluntary activity. It is not part of business consideration. Anything given…

Q: When a company purchases prepaid rent, it

A: Prepaid rent is the amount of rent which is paid by the entity in advance against which the property…

Q: Accounting Tom can use the 1031 like kind exchange rules to exchange his personal vehicle for…

A: The answer for the True or false question and relevant explanation are presented hereunder : 1031…

Q: Which of the following is not a liability?a. Income taxes payableb. Accrued warranties payablec.…

A: Liability are the obligations which are to be paid in current period or in future.

Q: What is the loss on factoring to be recorded by Rosewell Company? Prepare the journal entry to…

A: Factoring is the process of selling a company’s accounts receivables to a third party at a lower…

Q: 1. Which of the following organizations is least likely to have a liability called Deferred Revenue?…

A: Deferred Revenue, also known as Unearned Revenue, is a liability that arises when a company receives…

Q: 1. Identify any issues pertaining to financial regulations that would cause people to lose their…

A: Financial regulations are the supervisions and management regulations that are levied on the…

Q: Identify issues pertaining to any financial regulations that cause persons to loose their home?

A: In case of a default unlimited liability might cause a shareholder to loose their home.

Q: Which of the following fringe benefits is taxable?

A: Answer is option d. job-placement assistance

Question

Identify the accounting assumption, accounting principle, or reporting constraint that most
appropriately justifies these procedures and practices. Use only one item per description.
Choices:
a. Full disclosure principle
b. Time period assumption
c. Materiality constraint
d. Cost principle
e. Revenue recognition principle
f. Conservatism constraint
g. Matching principle
h. Economic entity assumption
i. Monetary unit
j. Going concern
k. some other answer

l as
10. The cost of beverages taken home for the personal use of the owner is recorded as a
withdrawal because of the
principle.
11. The local hamburger restaurant expenses all spatulas, french fry baskets, and other
cooking utensils when purchased.
12. Companies present sufficient financial information so that creditors and reasonably
prudent investors will not be misled.
13. Resto Supplies, Inc. takes a P32,000 loss on a number of older ovens in its inventory; it
paid the manufacturer P107,000 for them but can sell them for only P75,000.
14. A hotel receives advance payments of P2,500.000 from a conference organizer. This is
not a sale due to the
principle.
15. Hard Rock Cafe is a wholly owned subsidiary of Jollibee Foods Corporation., and Hard
Rock Café's operating results and financial condition are included in the consolidated
financial statements of PepsiCo. (Do not use full disclosure.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17. Is this true or not? Can you please explain to me why?
Please kindly answer What Latin legal maxim translates to “owner bears the risk of loss”?
Q#3: How is accidental loss of goods treated in final account in case: • Goods had not been insured or Goods have been insured and the insurance company has claims associated with it.
Let’s say someone applies for an apartment and the landlord informs them that based on their credit report, they are not going to rent them an apartment. According to FCRA, what information must they legally provide you about that decision.
12 Which of the following would not be reported as charges for services on the statement of activities? Multiple Choice Parking fines. Business permits. Registration fees. Grant for summer programs.
Can you provide the statement of profit and loss please Thanks in advance
Hi, Does Rent Revenue go under sales or under other income and expenses?
Unlimited liability means: a. No restriction on personal liability b. Restriction on personal liability c. Restriction on sharing profit d. Restriction on sharing loss
3. Do you think garnishment at one's job is effective, in paying back the debt?
This concept states that income should be recognized when earned regardless of being received and expense is recognized when incurred regardless of being paid.