
Concept explainers
Explain what it means to say that an accounting class is not the same as a math class.

Accounting: Accounting is the process of recording, summarizing, and reporting all the financial transactions of a company over a period of time, to be used by the various decision makers of the company.
To Explain: That an accounting class is not the same as math class.
Explanation of Solution
Accounting class is very much different from the math class. In math operations, like addition, subtraction, and others are followed to derive value for the unknown variables, to formulate the theories and for other operations. On the contrary, accounting follows a systematic procedure of recording the various transactions of a company, which shall be used by the management, investors and creditors.
Want to see more full solutions like this?
Chapter 1 Solutions
Financial Accounting
- Hillwood Textiles computes its plantwide predetermined overhead rate annually based on direct labor hours. At the beginning of the year, it was estimated that 42,000 direct labor hours would be required for the period's estimated level of production. The company also estimated $525,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.00 per direct labor hour. Hillwood’s actual manufacturing overhead cost for the year was $670,000, and its actual total direct labor hours were 43,200. Compute the company’s plantwide predetermined overhead rate for the year.arrow_forwardAccurate Answerarrow_forwardElizabeth Appliance Company had a net income of $68,400 and net sales of $480,000. Compute the relationship of net income to net sales.arrow_forward
- Using the weighted-average valuation method the equivalent units produced by the department were _________Units.arrow_forwardI am looking for the correct answer to this general accounting question with appropriate explanations.arrow_forwardPlease help me solve this general accounting question using the right accounting principles.arrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegePkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
