Full economic costs of the activities
Why do most governments and not-for-profits budget on a cash or near-cash basis even though the cash basis does not capture the full economic costs of the activities in which they engage?
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Distinguish between the circumstances when an auditor might give an unqualified opinion with an explanatory paragraph, a qualified opinion, and an adverse opinion. Do you think a disclaimer is an acceptable substitute for a qualified or adverse op
The Milk Chocolate Division of Mmmm Foods, Inc. had the following operating results last year: sales (150,000 pounds of chocolate) $60,000. Variable expense $37500, contribution margin $22500, Fixed Expense $12,000. Profit $10,500. Milk Chocolate
Ronaldo Inc. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts this year's net income to be $600,000. If the company follows a residual dividend policy, what w
The Client also would like to know if it should merge with the competitor. Assuming the merger will pass the scrutiny from the DOJ, what do you suggest and why?
You are told that the market value of a perpetuity that pays $50 at the end of each year is $877.19. What is the appropriate discount rate associated with the perpetual cash flow?You are told that the market value of a perpetuity that pays $50 at
Do the values that you found confirm your expectations as to the different rates of return for the three types of investments?
What are some of the guidelines we should use for storing receipts and payments? What should we be doing for our tax records?
Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the purchase would be:
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