Gadubhai Hawkeye Games Inc. buy $100K worth of raw materials from suppliers but does not paysuppliers yet. Which of the following statement is correct?O The transaction decreases revenue.O The transaction increases stockholder's equity.O The transaction increases asset.O The transaction does not have impact on liabilities.

The accrual concept recognizes revenues and expenses when they are earned or incurred, regardless of…

Answered: Hawkeye Games Inc. buy $100K worth of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 13Q: Coffee Partners decides to close due to the increased competition from the national chains. If after...

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A company should immediately recognize: A) any gain when it constructs a piece of equipment at a cost savings. B) any gain when it makes a bargain purchase. C) any gain when a company receives no cash for an asset received in an exchange. D) any loss when it ignorantly pays too much for an asset originally.
Who is responsible for the liabilities of a company and the risk of its value dropping to zero? a. Banks and Financial Institutions O b. None of these c. Suppliers O d. Creditors
Which of the following statements is/are true? O In the case of flat-rate write-offs on receivables, the sales tax must also be corrected. All deposits are income effective. O If a company's profit is to be reported as high, administrative costs are taken into account when determining the production costs. O Compared to straight-line depreciation, declining-balance depreciation means that profits tend to be higher in the future.
Unlimited liability meansa. there is no limit on the amount an owner canborrow.b. creditors will absorb any loss from nonpayment of debt.c. the business can borrow money for any typeof purchase.d. the owner is responsible for all businessdebts.e. stockholders can borrow money from thebusiness.
Which of the following statements is/are FALSE? A. Under IAS17, companies would often structure their leases as operating leases instead of finance leases as this provided lessees with a good source of off-balance-sheet funding. B. The capital maintenance concept has been put in place to protect creditors' interests from the risk that a business may go bankrupt and creditors may not be able to recover their claims. C. For business A (with closing inventory of £100m and profit of £20m) the impact of an X% change in closing inventory on profit is higher in proportionate terms than for business B (with closing inventory of £500m and profit of £200m). D. The total assets on the SOFP most often understate the value of the business, due to important intangible assets with subjective valuations missing from the SOFP and the assets shown on the SOFP appearing at their historical cost, when the cost model is used. E. Writing down the value of inventory on the SOFP and recognising increased cost…
Which of the following is not a reason a company would be willing to accept new business at a loss? A.) The company has the expectation that certain customers can influence other potential customers. B.) The company has the expectation that it will make up for it in later years and has the expectation that certain customers can influence other potential customers. C.) The company has the expectation that its estimates will prove incorrect and that the business will result in a profit. D.) The company has the expectation that it will make up for it in later years.
1. What is the relevant cost to make the part? State answer in total dollars NOT per unit and as a positive number. 2. Should Ran Corporation make the part? 3. What should Ran ignore? Why? 4. What would be the impact on total Net Income if Ran corporation accepted the supplier's offer? Show a negative for a loss, positive for a gain.
A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank depositsb. sale of treasury sharesc. sale of plant and equipmentd. sale of product T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: a. debited to APIC to the extent of the credit when the stock was issuedb. debited to retained earningsc. credited to APIC from previous treasury stock transactionsd. credited to APIC relating to the same issue Which of the following should be reported for capital stock? a. the shares authorizedb. the shares issuedc. the shares outstandingd. all of these
Compute the times interest ratio and use it to analyze liabilities. Show work
Identify whether the statement are True or False. 1. Insurance companies use replacement value as a basis to determine the appropriate insurance premium to be charged to their clients. * 2. To get book value per share, total liabilities are deducted from total assets, and the resulting figure is divided by total authorized shares * 3. For real properties, it is more important to look at the age of the asset than its size. * 4. Fair Market value is the term used to describe the value derived from the amounts reflected in the financial statements. * 5. Risk identification is important to allow investors to assess the impact of the risk on their investment. * 6. Brownfield investments are easier to evaluate as information is already available from prior years * 7. The book value method is a transparent approach since value can be easily verified by looking at the financial statements * 8. If there are no comparable assets found in the market, it is more appropriate to use the replacement…
Please answer with only simple explanation thank you! 1.) A gain or loss from one of the following transactions should not be included in determining income: receipt of interest from bank deposits sale of treasury shares sale of plant and equipment sale of product 2.) Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: debited to APIC to the extent of the credit when the stock was issued debited to retained earnings credited to APIC from previous treasury stock transactions credited to APIC relating to the same issue 3.) Which of the following should be reported for capital stock? the shares authorized the shares issued the shares outstanding all of these 4.) Which of the following would be classified in a different major section of a balance sheet from the others? capital stock…

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