Reference no: EM131002035
Each of the following statements represents a decision made by the accountant of Growth Industries:
a. A tornado destroyed $200,000 in uninsured inventory. This loss is included in the cost of goods sold.
b. Land was purchased 10 years ago for $50,000. The accountant adjusts the land account to $100,000, which is the estimated current value.
c. The cost of machinery and equipment is charged to a fixed asset account. The machinery and equipment will be expensed over the period of use.
d. The value of equipment increased this year, so no depreciation of equipment was recorded this year.
e. During the year, inventory that cost $5,000 was stolen by employees. This loss has been included in the cost of goods sold for the financial statements. The total amount of the cost of goods sold was $1,000,000.
f. The president of the company, who owns the business, used company funds to buy a car for personal use. The car was recorded on the company's books.
Required:
State whether you agree or disagree with each decision.
|
Affect prices for concert tickets-rates for radio programing
: In 2005, Clear Channel (an owner of popular radio stations) spun off concert promoter Live Nation into an independent company. How would this affect prices for concert tickets or rates for radio programming?
|
|
Comment on when united airlines should record the purchase
: a. Comment on when United Airlines should record the purchase of these planes. b. Comment on when Boeing should record the revenue from selling these planes. c. Speculate on how firm the commitment was on the part of United Airlines to accept deliver..
|
|
What kinds of unwanted reactions might you encounter
: What kinds of unwanted reactions might you encounter when trying to convince the business committee to accept your proposal for a new service
|
|
Three different types of waste that can be found
: From the second e-Activity, compare and contrast the lean service system found with Southwest Airlines to a full-service airline such as United Airlines, British Airways, and other large carriers in terms of cabin service, boarding process, baggag..
|
|
Accountant of growth industries
: Each of the following statements represents a decision made by the accountant of Growth Industries: a. A tornado destroyed $200,000 in uninsured inventory. This loss is included in the cost of goods sold.
|
|
Statements about high-technology businesses is true
: Which of the following accurately brings out the distinction between small business and larger firms? A(n) _____ is a precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals. Which of the foll..
|
|
Income from the mining of mineral deposits usually decreases
: Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract. Determine the future worth in year 10 of a mineral lease that yielded income of $14,000 in years 1 through 4 and then amounts that decreas..
|
|
What are the broader implications of the study
: INTRODUCTION/RATIONALE: Why did the authors perform the study? What did they aim to test? RESULTS: What did the authors find? DISCUSSION: What are the broader implications of the study? Why are the findings important
|
|
Health system bear when it agrees to a bundled payment
: An insurance market consists of high-risk patients, who average $40,000 in spending per year, and low-risk patients, who average $1,000 per year. Overall, low-risk patients represent 90 percent of the population. What would average spending be for a ..
|