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
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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
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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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