The opportunity cost was the camera, as it was the next best thing in his decision. The trade-off was the video games, as it was the first thing eliminated in his decision. There can be many trade-offs in a decision but only one opportunity cost, as trade-offs are everything eliminated and opportunity costs is the option that is not chosen out of the last two choices.
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(c) Obligations that a company expects to pay within the next year or operating cycle, whichever is longer.
(d) Information that is complete, neutral, and free from error. (e) The primary accounting standard-setting body in the United States.
Andswer:
The question is related to the Concept of Materiality. The concept is used to judge and measure whether an event or a transaction is able to influence the decisions of an investor.
In this scenario, the answer is (c) Obligations that a company expects to pay within the next year or operating cycle, whichever is longer.
Because the size and the nature of such obligations may influence investors to invest or not in the company.
Explanation:
Answer:
5 for pf students
Explanation:
Pf
b. As a conditional promise to give of $10,000.
c. As temporarily restricted support of the present value of $10,000.
d. As temporarily restricted support of $10,000.
Answer:
a. It should not be accounted for until it is received.
Explanation:
When a donor make a promise to make a donation of certain amount of money to a not-profit-organization, the amount is referred to as a pledge.
There are two important variations of a pledge depending on the conditions attached to it. These variations have to be considered when the pledge is being accounted for. The following are the two variations:
1. Unconditional pledge: This occurs when a pledge is committed to by a donor without any reservation. In this case, the funds will be recorded as revenue and an account receivable by the not-for-profit organisation that is receiving it.
2. Conditional pledge: This occurs when a pledge is committed to by a donor but with a condition to be met attached to it. That is, the donor promises the organisation certain amount of money contingent upon some future event. In this case, the not-for-profit organisation will not record anything. The organisation has to wait until the condition is met. When the condition is eventually met, the pledge will then be recorded as revenue and an account receivable.
The answer:
Since a pledge of $10,000 received by the League has a condition attached to it that the donation will not be received for three years, that is, it will not be received until after three years, the pledge is considered as a conditional pledge. Therefore, the League will not record anything until after it receives the pledge.
Therefore, the Cats and Dogs League should not be accounted for until it is received.
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