Circumstances under which randy decision would be acceptable

Assignment Help Accounting Basics

Reference no: EM13156485

R&R Equipment Company is preparing its annual financial statements in anticipation of applying for a loan. During the last week of the year, R&R received a shipment of inventory but has not paid for it. The invoice indicates that R&R owes $5,000 for the purchase. The owner of R&R, Randy Ray, has decided to omit this asset and the related liability from the year-end balance sheet, reasoning that it is okay because he is omitting both of them, which means there is no difference in owners' equity.

For this assignment you are to address the following:

* What is your opinion of Randy's reasoning?(1 Paragraph)

* Discuss circumstances under which Randy's decision would be acceptable under GAAP and circumstances under which it would definitely be unacceptable. (2 to 3 Paragraphs).

Reference no: EM13156485

Questions Cloud

Conclude that the mean waiting time is less than minutes : At the 0.05 significance level, can we conclude that the mean waiting time at the Warren Road MacBurger is less than 3 minutes?

What would you predict to occur in a knock-out mouse : What would you predict to occur in a knock-out mouse with a deletion in CD28?

Find the current set of reserve requirements : find the current set of reserve requirements that banks must meet. Then calculate the reserve requirements for banks with the following amounts of transactions deposits.

Calculate the ksp of the compound : The solubility of the ionic compound M2X3, having a molar mass of 214 g/mol, is 3.18 10-7 g/L. Calculate the Ksp of the compound.

Circumstances under which randy decision would be acceptable : Discuss circumstances under which Randy's decision would be acceptable under GAAP and circumstances under which it would definitely be unacceptable. (2 to 3 Paragraphs).

National income is initially at its equilibrium level : National income is initially at its equilibrium level when desired investment falls and a fall in national income, but not by as much as the fall in desired investment

Excluding both glycolysis and the citric acid cycle : Excluding both glycolysis and the citric acid cycle, how many ATP's are theoretically possible from oxidative phosphorylation as a result of the oxidation of 20 pyruvate molecules to form 20 acetyl Co A molecules? Show your work.

Cost-benefit analysis for college degree at university : Complete a cost-benefit analysis for a college degree at a university. Be sure to include all direct and indirect costs. Take into account the time value of money for future income.

Is there a systematic relationship : Using the World Bank classification of countries, select countries from the different categories and examine the data on output growth and education level. Is there a systematic relationship?

User Account

All Pages