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Why would reclassifying period costs as product costs increase this period's reported earnings?
Wiki User
∙ 9y ago
You will increase the period's earnings because as a product costs, they may not be reported in the same period. Changing period costs to product costs improves how a company looks on paper, but does nothing for their actual financial position.
Wiki User
∙ 9y ago
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Which accounting assumption assumes that all accounting information is reported monthly or yearly?
By definition the time period assumption presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Answer is Time period assumption
What is the journal entry in the declaration of dividends?
The journal entries for different time periods are recorded as the following: 1 - When the dividend is declared: [Debit] Retained Earnings XXXX [Credit]Dividend Payable XXXX 2 - When the dividend is paid: [Debit] Dividend Payable XXXX [Credit] Cash/bank XXXX
What are the proper procedures for a change to the LIFO method of inventory valuation?
Company should adjust its financial statements for each prior period presented. Thus, financial statement info about prior periods will be on the same basis as the new accounting pricipal. It adjusts the carrying amounts of assets and liabilites as of the beginning of the first year presented. It will reflect the cumulative effect on prior periods. Company should also adjust an opening balance of retained earnings or net assets as of the beginning of the first year presented.
If total liabilities decreased by 30000 during a period of time and owners equity increased by 35000 during the same period the amount and direction increase or decrease of the periods change?
If total liabilites increased would assests or stockholders equity?
When are Kmart pay periods?
Biweekly.
What happens as periods increase on the periodic table?
the principal energy levels of valence electrons increase.
What is the accrual concept?
The accruals concept of accounting states that transactions are to be recognised when they occur, and reported in the periods to which they relate.
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
Does women's sexual desire increase during periods times?
Yes
What factors associated with earnings quality?
The key question is "Is this real sustainable earnings?" (high quality) or is it earnings due to some accounting quirk or one-time event which would not be expected to continue in future periods? Is it even honest reporting or were the books adjusted to make management look good and achieve desired bonuses?
Why did speciation rates increase at the Triassic-Jurassic periods?
Because trees died.
What causes the increase of heartbeat and respiration during periods of high emotion?
During periods of high emotion, the sympathetic nervous system is activated, leading to the release of stress hormones such as adrenaline. This triggers an increase in heart rate and respiration to prepare the body for "fight or flight" response. This physiological response is meant to provide the body with the energy needed to cope with the stressful situation.
What is the Use of financial leverage?
Financial leverage means the use of borrowed money to increase production volume, and thus sales and earnings.It is measured as the ratio of total debt to total assets. The greater the amount of debt, the greater the financial leverage.Since interest is a fixed cost (which can be written off against revenue) a loan allows an organization to generate more earnings without a corresponding increase in the equity capital requiring increased dividend payments(which cannot be written off against the earnings).However, while high leverage may be beneficial in boom periods, it may cause serious cash flow problems in recessionary periods because there might not be enough sales revenue to cover the interest payments.Called gearing in UK.
What is an employee earnings record?
It is a record of all the earnings and deductions an employee had for a specific period of time. The record has information pertaining to pay rate, paid hours, type of pay, what deductions were taken from pay such as taxes and deductions. It also contains dates of pay periods and pay dates.
What event could cause the power of the president to increase?
Under periods of marshall law or invasion
Do breathing exercises increase oxygen intake for long periods of time?
i'd say no. its more for concentration.
What event or periods experienced the greatest increase in organized crime in the United States?
the Prohibition Erathe Prohibition Era
