What impact does materiality have on the determination of how a cost related to a plant asset is reported on the financial statements?
When an expenditure is incurred, a determination must be made as to whether the cost is a capital or revenue expenditure. Capital expenditures are reported as assets, whereas revenue expenditures are reported as expenses. If the dollar amount of the expenditure is small, the cost of accounting for the item as a capital expenditure (and subsequent depreciation) may outweigh the benefits. A company may create a company policy that treats expenditures below a certain amount as expenses.
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(CMA adapted, Dec 93 #17) Norton Inc has a 2 to 1 current ratio. This ratio would increase to more than 2 to 1 if
a. a previously declared stock dividend were distributed. b. the company wrote off an uncollectible receivable. c. the company sold merchandise on open account that earned a normal gross margin. d. the company purchased inventory on open account. e. none of the above.
Sergei owns some property that has an assessed value of $242,675. Calculate the tax due if the tax rate is 51.50 mills. (Round your answer to the nearest cent if necessary)
A. $12,497.76 B. $11,592.10 C. $1,249.78 D. $11,584.97
Opponents of drug testing base their argument on the ________Amendment
Fill in the blanks with correct word
The limited liability company is the only form of organization that allows members to share liability.
Answer the following statement true (T) or false (F)