Define the entity concept and the historical cost concept of financial accounting.

You are analyzing a project with an initial cost of £48,000. The project is expected to return £11,000 the first year, £36,000 the second year and £38,000 the third and final year. There is no salvage value. The current spot rate is £0.6211. The nominal return relevant to the project is 12 percent in the U.S. The nominal risk-free rate in the U.S. is 4 percent while it is 5 percent in the U.K. Assume that uncovered interest rate parity exists. What is the net present value of this project in U.S. dollars?

What is the difference between cost-push and demand-pull inflation?

What is the determing factor in how accounts are considered into the calculation of the cost to retail ratio ( when finding the ending inventory using the conventional retail method) ?                   

to achieve time, quality or cost reduction targets, organization may:

Fargo's property plant and equipment consist of a building with cost of $ 840,000 and a salvage value of $40,000 with a 15 year life purchased on 6/1/14 and equipment that cost $88,000 and salvage value of $4,000 with a 5 yr life purchased on 9/1/17. Fargo incurred delivery and installation charges of 8,000 on equipment. Fargo spent 39,000 painting the building during 2019. On 1/1/19 fargo revised estimate on life of building. fargo now estimates that the building will be in service until 12/31/31.

On 10/1/16 Fargo exchanged the piece of equipment for a similar piece of equipment with Rock company. The new equipment has salvage a salvage value of $5000 and is expected to be taken out of service at the same time the old equipment would have been. Transaction had no commercial substance. Fair value of equipment they gave up was 47,000 the fair value of the equipment received from Rock was 40,000 in addition to the equipment they received 7,000 cash

1. Prepare journal entry to record the transaction on Fargos books

2. Fargo considers depreciation to be admin expense. compute depreciation for building and equipment 2019. fargo computes depreciation to nearest month and uses 200% declining balance method for both Can someone show me how to do this step by step

Baird Bros. Construction is considering the purchase of a machine at a cost of $203,000. The machine is expected to generate cash flows of $38,000 per year for 10 years and can be sold at the end of 10 years for $28,000. Interest is at 12%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: a. What is the net present value of the cash flows?

b. Determine if Baird should purchase the machine. Yes No

21.       Which of the following is a direct cost of a specific department in a retail store?
            A.        company president’s salary
          B.        rent on the store
            C.        utilities for the store
            D.        cost of the department’s inventory

22.       You have tickets to go to Mexico (Cancun specifically) over spring break. Just this week your best friend informs you that s/he is getting married over spring break and would like you to be in the wedding as an attendant. Which of the following is a sunk cost that should not be relevant to your decision as to whether be in the wedding or go on the trip to Mexico?

1. The cost of the airline tickets to Mexico
2. The amount of refund you could get on the airline tickets to Mexico
3. The cost of the clothing you will have to buy/rent to be in the wedding.
4. The fact that you have never been anywhere for Spring Break and were really looking forward to going to Mexico

23.       If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pounds are desired for inventory at January 31, and 360,000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

a.   300,000 pounds

b.   480,000 pounds

c.   240,000 pounds

d.   420,000 pounds

24.       In a production budget, total required production units are the budgeted sales units plus

a.   beginning finished goods units.

b.   desired ending finished goods units.

c.   desired ending finished goods units plus beginning finished goods units.

d.   desired ending finished goods units minus beginning finished goods units.

25.       In most cases, prices are set by the

a.   customers.

b.   competitive market.

c.   largest competitor.

d.   selling company.

One year ago, a machine was purchased at a cost of $2,000, to be useful for 6 years. However, the machine has failed to perform properly and has a cost of $500 per year per year for repairs, adjustments, and shutdowns. A new machine is available to accomplish the functions desired and has an initial cost of $3,500. Its maintenance costs are expected to be $50 per year during its service life of 5 years. The approximate market value of the present machine has been roughly $1,200. If the operating costs (other than maintenance) for both machines are equal, show whether it is economical to purchase the new machine. Perform a before-tax study using an interest rate of 12%, and assume that the salvage values will be negligible.