Questions
1. Are the amounts at which fixed assets are reported in the balance sheet their approximate...

1. Are the amounts at which fixed assets are reported in the balance sheet their approximate market values as of the balance sheet date? Discuss.

2. Immediately after a used truck is acquired, a new motor is installed and the tires are replaced at a total cost of $5,750. Is this a capital expenditure or a revenue expenditure?

In: Accounting

A number of states, California and Illinois for example, have recently experienced fiscal problems because tax...

A number of states, California and Illinois for example, have recently experienced fiscal problems because tax revenue has not kept up with expenses. States and cities have defaulted on debt in the past. Give an argument for and against the idea of the federal government bailing out the cities and states.

In: Economics

Businesses can increase their bottom line (income) in a variety of way: growing the top line...

Businesses can increase their bottom line (income) in a variety of way: growing the top line (revenue) by selling more products or services or charging higher prices, and/or decreasing costs.  Explain how this this works in easy-to-understand language.  Please use a variety of examples in your explanation

In: Economics

Accounting conventions are common guidelines and practices—principles, assumptions, and constraints—followed by accounting professionals when recording business...

Accounting conventions are common guidelines and practices—principles, assumptions, and constraints—followed by accounting professionals when recording business transactions. These accounting conventions are standards used by all business organizations, so it is important to understand what they are and how to apply them.

  • Revenue recognition.
  • Cost effectiveness.

In: Accounting

- On your own words, explain the purpose and the importance of the income statement, and...

- On your own words, explain the purpose and the importance of the income statement, and prepare the income statement for Max company based on the following information taken from the trial balance in December 2018

Revenue

70,000

Supplies expense

3,000

Rent expense

6,000

Wages expense

22,000

In: Accounting

Evaluate the elasticity of demand for a car applying a minimum of two elasticity determinants. Does...

Evaluate the elasticity of demand for a car applying a minimum of two elasticity determinants. Does your product likely have an elastic or inelastic demand based upon your evaluation of factors influencing the price elasticity of demand? How will considering these elasticity determinants impact product revenue?

In: Economics

how to write a reflection in elasticity economics write a reflection of elasticity some examples of...

how to write a reflection in elasticity economics

write a reflection of elasticity

some examples of how sensitive are consumers to a change in price,how much less will they buy if prices are raised?

How much will they buy more if the prices are lowered?

Revenue, what happens to revenues is the prices change?

In: Economics

Skysong, Inc. began the year with retained earnings of $308000. During the year, the company issued...

Skysong, Inc. began the year with retained earnings of $308000. During the year, the company issued $417000 of common stock, recorded expenses of $1193000, and paid dividends of $80400. If Skysong ending retained earnings was $328000, what was the company’s revenue for the year? $1293400 $1213000 $1630000 $1710400

In: Accounting

Collect information on the budgets of each of Netherland and Malaysia for the 15 years from...

Collect information on the budgets of each of Netherland and Malaysia for the 15 years from 2004 and 2018. You need to collect information on the major components of revenue and expenses with smaller items put into the category “others”. Determine whether the country or federal budget was in surplus or deficit in each of the years.

In: Economics

The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020.


The following information has been provided on ABC, a Canadian controlled private corporation for the year ended December 31, 2020.

The following statement has been provided:

Sales


$895,000

Cost of sales

$450,000


General and administrative expenses

225,000


Research and development expenditures

75,000


Operating income


$145,000

Other income


35,000

Net income before taxes


180,000

Provision for income taxes – current and future


40,000

Net income after taxes


$140,000

You have been provided some notes on the above information:

The information in the following notes has already been reflected in the above income statement.

Amortization expense recorded in the financial statements   

$25,000

Landscaping costs re: factory premises

1,500

Interest on bank loan obtained for the purpose of purchasing common

shares in XYZ., a dividend-paying Canadian corporation

6,700

Legal costs of arranging an agreement among shareholders

2,200

Golf club membership fees

1,800

Meals and entertainment for clients

7,700

Management bonuses ($35,000 of the bonuses expensed in 2020, and shown as ‘‘Bonus Payable’’ on the Balance Sheet as at December 31, 2020 has not been paid at the time of filing the corporate tax return on June 30, 2021)

55,000

Interest and penalties on income tax assessments, expensed for accounting purposes

2,250

Dividends received

5,500

Required: You will need to calculate the income from business / property for tax purposes for 2020. Start with the net income after taxes figure of $140,000. Then make the necessary adjustments and make supporting notes (1, 2, 3, etc.) to explain why something should stay in the financial statements, or why it should be adjusted.

In: Finance