Classify the transaction as material

Assignment Help Financial Accounting
Reference no: EM131219165

Explain whether you would classify the transaction as material and explain why or why not. Rainbow Records expenses all capital equipment under $25,000 on the basis it is immaterial. The company has followed this practice for a number of years. its average yearly capital expenditures over the last 5 years is $25 million. Please be thorough.

Reference no: EM131219165

Questions Cloud

Part level submission : (Part Level Submission) The Solo Hotel opened for business on May 1, 2014. Here is its trial balance before adjustment on May 31. SOLO HOTEL Trial Balance May 31, 2014 Debit Credit Cash $ 2,708 Supplies 2,600 Prepaid Insurance 1,800 Land 15,208 Build..
Difference in the cash flow reporting requirements : Use the Internet or the Strayer Library to research the difference in the cash flow reporting requirements between US GAAP and IFRS. Analyze the impact of erroneous classifications in the Operating Activities section of the statement of cash flows, d..
Responsible for explaining cost estimation techniques : Imagine you are responsible for explaining cost estimation techniques and subsequent uses of cost information to team members outside of your department. How would you describe their interrelationship? Include charts, external references, etc. as app..
How much of the payment is taxable dividend : Blue Moon Incorporated is owned 100% by Maggie Hayes. The corporation redeemed 25% of her stock for $130,000 cash. The corporation’s E&P is $110,000. Her stock basis is $80,000. How much of the payment is a taxable dividend?
Classify the transaction as material : Explain whether you would classify the transaction as material and explain why or why not. Rainbow Records expenses all capital equipment under $25,000 on the basis it is immaterial. The company has followed this practice for a number of years. its a..
An application of the accrual basis of accounting : As of January 31, Hudson Corporation owes $600 to U-Rent-It for equipment used during January. If no adjustment is made for this item at January 31, how will Hudson's financial statements be affected? Which of the following is not an application of t..
What are your nominal and real rates of return : Suppose you buy a bond for $1,020 with a 15-year maturity paying an annual coupon of $80. A year later interest rates have dropped and the bond’s price has increased to $1,050. What are your nominal and real rates of return? Assume the inflation rate..
Diversification into silver mining stocks-automotive stocks : An investor is currently fully invested in gold mining stocks. Which action would do more to reduce portfolio risk: diversification into silver mining stocks or into automotive stocks? Why?
Assets and liabilities-what was their fair value : Grant Company acquired all of Bedford Corporation's assets and liabilities on January 1, 20X2, in a business combination. At that date, Bedford reported assets with a book value of $630,000 and liabilities of $368,000. If the book value of Bedford's ..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Jamie Lynn is the RM

Jamie Lynn is the RM at a 250-room full-service hotel property. Her comp set includes?ve full- and limited-service properties

  Compliance with planning and supervision provision of GAAS

Auditor's record of compliance with the planning and supervision provision of GAAS

  What is the retailers effective cost of trade credit

A large retailer obtains merchandise under the credit terms of 2/15, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

  Quality-of-earnings qoe analysis attempts to evaluate

quality-of-earnings qoe analysis attempts to evaluate whether the reported earnings of a company reflect its true

  Review whole foods market

Summarize the company s financial performance for 2010. Do you think they satisfied stockholder expectations

  The total costs

Fill in the costs in the table below.If the shop repairs 12 cars in a week, the total costs are $.If the shop repairs 0 cars in a week, the total costs are $.

  What is opinion of current level of accounting regulation

Discuss the above quotation. Explain and evaluate the arguments for and against regulation. What is your opinion of the current level of accounting regulation?

  What will be the firms cash cycle

Suppose that Tucker Industries has annual sales of $5.20 million, cost of goods sold of $2.80 million, average inventories of $1,135,000, and average accounts receivable of $520,000. Assuming that all of Tucker's sales are on credit, what will be the..

  Classification and regression tree

Describe the interesting and uninteresting information that these rules provide and what are possible reasons for the classification tree's failure to find a good predictive model?

  The consistency concept

The consistency concept:

  Stan is an auditor for cartman& kenny

1.Stan is an auditor for Cartman& Kenny, CPA. He has recently beenassigned to a new private client called Southpark Services, a provider of Web management services. Southpark has clients throughout the United States. The company manages the clients' ..

  How does job-order costing apply to washburn guitar

How does job-order costing apply to Washburn guitar? What are some examples of costs tracked during the manufacturing process? What are some examples of source documents used by Washburn in its process?

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!

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