Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods. To explain: Effect of time period assumption on business analysis.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

None

Need help

11) Amber Inc has 200,000 shares of $10-par common stock outstanding and 4,000 shares of $50-par 8% convertible preferred stock outstanding. For 2024, Amber reported net income of $700,000 after deducting income taxes at a 30% rate. If each share of preferred stock is convertible into 1 share of common stock, what would Amer report for diluted earnings per share? A $3.42 B $3.43 C D $3.35 $0.00 12) Yellow Co foresees the possibility of being unsuccessful in a lawsuit that may result in incurring a major loss associated with its related liability. Which of the following is correct? A If it is remote, and a guarantee was given, a disclosure is necessary, but not an accrual. B If it is probable, a disclosure is necessary, but not an accrual. с If it is probable, an accrual is necessary but not a disclosure. D If it is reasonably possible, neither accrual nor disclosure is necessary. 13) On Jan 1, Year 1, White Co grants its three top employees, Mr. Blue, Ms. Orange, and Mrs. Green, 3,000…

Answer 2

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Answer 6

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

Answer 7

Chapter 3, Problem 1Q

(a)

To determine

Time period assumption: According to time period assumption accountants divide the economic life of a business into artificial time periods.

To explain: Effect of time period assumption on business analysis.

Answer 8

(a)

Expert Solution

Explanation of Solution

Time period assumption affects accountant’s business analysis in following ways:

Recording of transactions in relevant time period.
Allocation of costs over the relevant time period.
Preparation of the financial statements periodically.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.

Answer 13

(b)

To determine

To explain: The terms fiscal year, calendar year, and interim periods.

Answer 14

(b)

Expert Solution

Explanation of Solution

Fiscal year: That time period which starts from first date of a month and ends after completion of 12 months is known as fiscal year. In simple words, the fiscal year is an accounting time period that is one year in length.

Calendar year: The year which starts from January 1 and ends on December 31 is termed as calendar year and many business organizations maintain their accounting period according to the calendar year.

Interim periods: Accounting periods are generally a month, a quarter, or a year. Monthly and quarterly time periods are called interim periods.