How to assume that an economic entit
Discuss why it is necessary for accountants to assume that an economic entity will remain a going concern. If an entity was perceived to be short term, what effect would that have on the accounting system?
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Miller Engine Research is expanding its research and production capacity to introduce a new line of fuel technology for car engines. Current plants call for the expenditure of $100 million on four projects of equal size.
A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments.
A firm is considering the purchase of a machine which will cost $30,000. It is estimated that the annual savings of $6,000 will result from the machine's installation.
The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units;
The store had $3,000 of ski boots in inventory at the beginning of October, and expects to have $2,000 of ski boots in inventory at the end of October to cover part of anticipated November sales. What is the budgeted cost of goods sold for October
Selling hotdogs. During a typical month, the stand reports a profit of $9,000 with sales of $50,000, fixed costs of $21,000 and variable costs of $0.64 per hot dog.
Issac Co sells merchandise on credit to Sonar Co in the amount of 9600. The invoice is dated on April 15 with terms of 1/15, net 45. If Sonar Co chooses not to take discount by when should the payment be made.
The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year 2012 are as follows: January 1 finished goods, $765,000;
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