User Account

All Pages

What would be the change to the total value of liability

Assignment Help Financial Accounting
Reference no: EM132823962

Consider the following worksheet with information extracted from a financial statement:

2020               

                             Assets             Liabilities            Equity

Reported ($)       500 000             100 000             400 000

Problem 1: You believe the firm has omitted a provision pertaining to a lawsuit. You assess this provision is valued at $50 000 and that it will be paid in the next six months. Using the worksheet approach and assuming a corporate tax rate of 30 per cent, what would be the change to the total value of the liability account?

Option 1: An increase of $35 000
Option 2: A decrease of $65 000
Option 3: An increase of $65 000
Option 4: A decrease of $35 000

Reference no: EM132823962

Questions Cloud

What beta would it need to have : If you think the stock will rise to $117 per share by the end of the year, at which time it will pay a dividend of $1 per share, what beta would it need to have
When might an analyst disregard preferred dividends : When might an analyst disregard preferred dividends? To ensure measurement consistency in calculating the ROE denominator, an analyst should
Communicate and embrace diverse perspectives : As leaders, we must effectively engage with people whose beliefs or world views are vastly different from our own.
How do you plan to include parents in reading literacy : How do you plan to include parents in reading and writing literacy? Explain how you will communicate with parents regarding a struggling reader.
What would be the change to the total value of liability : Using the worksheet approach and assuming a corporate tax rate of 30 per cent, what would be the change to the total value of the liability account?
Analyse occupational health and safety management system : Analyse occupational health and safety management system and Evaluate human factors contribution to accidents in the oil and gas industry
How much will be in the account three years : You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. How much will be in the account three years
Why relationships and family partnerships are essential : A research-based rationale* as to why relationships and family partnerships are essential to effective programs and practices within the early childhood field.
Prepare journal entries to record the November transactions : Natalie decides to operate Cookie Creations as a proprietorship. Prepare journal entries to record the November transactions

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd