What way should this machinerys purchase

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QUESTION

Acme Industries purchases new Machinery, that manufactures a product, and pays a total of $500,000 including all reasonable and necessary costs associated with purchasing the machinery.

Assuming that Acme made a rational economic decision in purchasing this machinery, answer the following

i) In what way should this Machinery's purchase, and use over time, conform with the Accrual Concept in accounting and the Matching Principle ?

ii) Acme also employs 5 people and pays them total wages of $250,000 each year.

In what way should the wages conform with both the Accrual Concept and the Matching Principle ?

NOTE Do NOT simply give definitions as this is NOT what the questions are asking

The answers MUST be in your own words, not from a textbook or any other source.

Verified Expert

in this context there is a case study provided which requires some analysis relating to machinery being treated under the above mentioned 2 concepts of accounting and salaries of employees also being treated for the same concepts.

Reference no: EM131957177

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len1957177

4/25/2018 3:51:59 AM

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len1957177

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len1957177

4/25/2018 3:51:31 AM

GENERAL . INSTRUCTIONS ; I Please read carefully I This assignment comprises a single IlneStion, • Length of the assignment MUST NOT exceed a single A4 page with 1.5 swing. • The AIM of this assignment is for students to demonstrate p roblem solving skills through self initiative and the ability to indepen_rhOv .r.esearchi, by taking an 'ethical' responsibility to complete this small task on their own without collaboration with others_ WHY ??? We need to reinforce the fact, that when employed., you will be given tasks to be corn Dieted by the deadline set by management, regardless of whether or not you are familiar with the task„ or theory related to the tack at Bend i.e. tough luck.

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