Westlawn Company discloses the following for the year ended May 31, 2020: Sales $486, eee 5, eee 12,1ee Sales discounts Sales returns Gross profit from sales 115, eee Loss 23, see Requlred: a. Calculate the net sales. Net sales b. Calculate the total operating expenses. Total operating expenses c. Calculate the cost of goods sold.

Q: Fair Value measurement

A: Fair value is the estimated selling price of an asset or settlement price of a liability.

Q: What exactly does the word "noncontrolling interest" imply in this context?

A: Non-controlling Interest: Non-controlling interest is the equity not attributable, directly or…

Q: Information produced using fair value as the measurement base is considered:   I. More neutral.…

A: Answer:- Fair value method meaning:- When a buyer and a seller voluntarily agree on a price for an…

Q: What are the two cases where Garner VS Murray rule is not applicable?

A: Generally, as per the Garner vs Murray rule, any capital loss incurred due to bankruptcy of the…

Q: Explain when you would issue a reservation of rights?

A: A reservation of rights is generally issued by insurance companies.

Q: Describe the approaches for measurement of fair value.

A: When measuring fair value of fixed assets, intangible assets, specified financial assets or…

Q: What is preemptive rights offering?

A: Preemptive rights:  A contractual clause that provides the shareholders with a right to purchase the…

Q: Provide the pros and cons of Sarbanes –Oxley Act (SOX).

A: Pros of Sarbanes Oxley Act 1. Crucial information cannot be witheld from customers By requiring that…

Q: What are the two prerequisites for the application of EAC

A: The Answer is about the two prerequisites for the application of EAC:

Q: What are the two preconditions for the use of EAC?

A: It is also called as EAC, is the yearly expense of owning and preserving a asset that is calculated…

Q: Explain THREE problems associated with the reliability and measurement of fair values.

A: Introduction: Fair value reporting is a difficult financial reporting standard because financial…

Q: critically discuss the advantages and disadvantages of rights issue.

A: Right issues is raising money from existing shareholders by providing more equity to existing…

Q: Why does FASB like the retrospective approach? Does it always have to be used?

A: The FASB stands for the Financial Accounting Standards Board. It is a non-profit organization that…

Q: How fair value measurement?

A: Fair Value In Accounting term Fair Value means the recognition of amount which are actually value…

Q: Describe the levels of fair value hierarchy?

A: Fair value:   A value which is determined based on the market situation, business demand, and the…

Q: What is a contra-asset? Give an example of one.

A:

Q: Discuss the rules for related party loss limitations.

A: The IRS has define rule regarding the transactions with the related parties and the treatment of…

Q: IFRS may be overridden in wide circumstances to achieve fair presentation Select one: True False

A: The objective of financial reporting is true and fair reporting of financial statements.

Q: What is the difference between a conditional and unconditional contribution?

A: Step 1 Contribution can be defined as something which a person contributes for achieving something.…

Q: Would the above decision change if they applied the IRR method? When do the two methods give…

A: Data given:   Scenario A Scenario B Year Free Cash Flow ($) Free Cash Flow ($) 0 -87000…

Q: Doctrine of Precedent?

A: Judicial precedent refers to the way in which the law is made and amended through the decisions of…

Q: What are the two primary reasons for using preemptive rights?

A: The right of the shareholders of a company to buy additional shares in any future issue of the…

Q: What are circumstance-imposed scope limitation and client-imposed scope limitation?

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Determine the theoretical ex-rights price?

A: The determination of the theoretical ex-rights price is generally done when stocks are issued and…

Q: What is the GAAP definition of fair value?

A:

Q: Distinguish a contigent liability from a provision.

A: Liabilities: It refers to the debt that company owes to someone. It can be short term or long term.

Q: Explain how compound interest differs from simple interest.

A: Interest is the amount of money that a financial institution or money lender receives for lending…

Q: Compare and contrast a condition precedent and condition subsequent.  Provide an example of each.

A: Condition precedent is an event that must occur before there is a duty to perform that contact on…

Q: When should the defender be replaced?

A: When should the defender be replaced?

Q: What two conditions must valid entities meet?

A: Entity:   Entity in the context of database management implies anything regarding which data is…

Q: what is the fair value?? long definition

A: The anticipated price at which an item is purchased or sold when both the buyer and the seller…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.