Explain the phrase Generally Accepted Accounting Principle.

Question

Brar Incorporated supplied the following financial information for analysis: Depreciable assets (purchased at the beginning of year 1) $ 4,500,000 Profits before depreciation (all in cash flows at end of year): Year 1 960,000 Year 2 1,400,000 Year 3 2,100,000 Replacement cost of depreciable assets at end of: Year 1 $ 5,000,000 Year 2 6,200,000 Year 3 7,600,000 The assets are depreciated at a rate of 12% per year and have no salvage value. What is the ROI for year 2 using historical cost, net book value? Multiple Choice 26.60% 24.72% 25.15% 22.64% None of these.

Answer 1

Question

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

b.

To determine

Explain the major sources of GAAP.

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

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Brar Incorporated supplied the following financial information for analysis: Depreciable assets (purchased at the beginning of year 1) $ 4,500,000 Profits before depreciation (all in cash flows at end of year): Year 1 960,000 Year 2 1,400,000 Year 3 2,100,000 Replacement cost of depreciable assets at end of: Year 1 $ 5,000,000 Year 2 6,200,000 Year 3 7,600,000 The assets are depreciated at a rate of 12% per year and have no salvage value. What is the ROI for year 2 using historical cost, net book value? Multiple Choice 26.60% 24.72% 25.15% 22.64% None of these.

Bella Brands operates with two divisions, Aftershave and Deodorant. The Aftershave Division produces a chemical that the Deodorant Division also uses. The Aftershave Division also sells this chemical to other firms for $27 per ounce. The cost information for the Aftershave Division is as follows: Variable costs per ounce $ 6.00 Fixed costs per ounce $ 15.00 Monthly production capacity 30,000 ounces If the Aftershave Division is operating at full capacity and can sell all of the chemical that it can produce, what is the minimum transfer price that the Aftershave Division will accept? Multiple Choice None of the choices is correct. $6.00 per ounce $21.00 per ounce $15.00 per ounce $27.00 per ounce

Please provide the accurate answer to this financial accounting problem using appropriate methods.

Answer 2

Question

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

b.

To determine

Explain the major sources of GAAP.

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

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Answer 3

Question

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

b.

To determine

Explain the major sources of GAAP.

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

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Answer 4

Question

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

b.

To determine

Explain the major sources of GAAP.

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

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Answer 5

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

b.

To determine

Explain the major sources of GAAP.

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

Answer 6

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

Answer 7

Chapter 1, Problem 4E

a.

To determine

Explain the phrase Generally Accepted Accounting Principle.

Answer 8

b.

To determine

Explain the major sources of GAAP.

Answer 9

b.

To determine

Explain the major sources of GAAP.

Answer 10

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

Answer 11

c.

To determine

Explain whether .there is a single comprehensive list of generally accepted accounting principles

Answer 12

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

Answer 13

d.

To determine

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

Answer 14

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Ch. 1 - Prob. 1STQ Ch. 1 - 2. To understand and use accounting information in...Ch. 1 - 3. Purposes of an accounting system include all of...Ch. 1 - Prob. 4STQ Ch. 1 - Prob. 5STQ Ch. 1 - 6. Financial accounting information is...Ch. 1 - Prob. 7STQ Ch. 1 - Prob. 8STQ Ch. 1 - Prob. 9STQ Ch. 1 - Prob. 10STQ

Explain the phrase Generally Accepted Accounting Principle.

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Explain the phrase Generally Accepted Accounting Principle.

Explain the major sources of GAAP.

Explain whether .there is a single comprehensive list of generally accepted accounting principles

List the types of accounting reports that are prepared in conformity with generally accepted accounting principles.

Chapter 1 Solutions