Exculpatory clauses are void as against public policy if they affect the public interest
Indicate whether the statement is true or false
TRUE
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The most conceptually appropriate method of valuing a liability under the historical cost basis is to
a. discount the amount of expected cash outflows that are necessary to liquidate the liability using the market rate of interest at the date the liability was initially incurred. b. discount the amount of expected cash outflows that are necessary to liquidate the liability using the market rate of interest at the date financial statements are prepared subsequent to issuance. c. record as a liability the amount of cash or cash-equivalent value that the company would be required to pay to eliminate the liability in the ordinary course of business on the date of the financial statements. d. record as a liability the amount of cash or cash-equivalent proceeds actually received when a liability was incurred.
Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAOn January 1, Year 1, the Baker Company purchased an asset for $200,000. The asset had a $50,000 salvage value and a 10-year life. Baker uses the straight-line method. At the beginning of Year 3, the asset was sold for $174,000. Show how the sale will affect Baker's financial statements, assuming that Baker uses straight-line
depreciation.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows??????? What will be an ideal response?
The legal doctrine upon which Justice Cardozo based his decision in the Palsgraf case is the doctrine of:
a. res ipsa loquitur. b. foreseeability. c. negligence per se. d. assumption of the risk.
A company has just received a special, one-time order for 1,000 units. Producing the order will have no effect on the production and sales of other units. The buyer's name will be stamped on each unit, at a cost of $1.50 per unit. Normal cost data, excluding stamping, follows: Direct materials…………………………… $ 10 per unit Direct labor……………………………….. 16 per unitVariable overhead………………………… 4 per unitAllocated fixed overhead…………………. 12 per unitAllocated fixed selling expense…………… 8 per unit Prepare an analysis that indicates the selling price per unit this company will require to earn $3,000 on the order.
What will be an ideal response?