Explain why the profit computed using historical cost accounting usually differs from that when calculated using replacement
Question:
Explain why the profit computed using historical cost accounting usually differs from that when calculated using replacement cost accounting and current purchasing power accounting.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
Replacement cost accounting is used to compute profit for a company that replaces its ...View the full answer
Answered By
James Warinda
Hi! I’m James Otieno and I'm an experienced professional online tutor with countless hours of success in tutoring many subjects in different disciplines. Specifically, I have handled general management and general business as a tutor in Chegg, Help in Homework and Trans tutor accounts.
I believe that my experience has made me the perfect tutor for students of all ages, so I'm confident I can help you too with finding the solution to your problems. In addition, my approach is compatible with most educational methods and philosophies which means it will be easy for you to find a way in which we can work on things together. In addition, my long experience in the educational field has allowed me to develop a unique approach that is both productive and enjoyable.
I have tutored in course hero for quite some time and was among the top tutors awarded having high helpful rates and reviews. In addition, I have also been lucky enough to be nominated a finalist for the 2nd annual course hero award and the best tutor of the month in may 2022.
I will make sure that any student of yours will have an amazing time at learning with me, because I really care about helping people achieve their goals so if you don't have any worries or concerns whatsoever you should place your trust on me and let me help you get every single thing that you're looking for and more.
In my experience, I have observed that students tend to reach their potential in academics very easily when they are tutored by someone who is extremely dedicated to their academic career not just as a businessman but as a human being in general.
I have successfully tutored many students from different grades and from all sorts of backgrounds, so I'm confident I can help anyone find the solution to their problems and achieve
0.00
0 Reviews
10+ Question Solved
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
Question Posted:
Students also viewed these Business questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The idea of using the difference between the market value of the firm and accounting book values as an indicator of market power and/or valuable intangible assets stems from the pioneering work of...
-
As a brand manager, for a product of your choice, develop a strategy for launching the product in a manner most likely to capture the attention of the product's primary target market. Write a...
-
A common type of lawsuit against public accountants is for the failure to detect a defalcation. State the auditors responsibility for such discovery. Give authoritative support for your answer.
-
Does the belief that women are not suited for politics vary by gender and/or educational attainment? GSS 2010 respondents were asked if they believe that women were not suited for politics (FEPOL)....
-
\((3.8+\sqrt{5})+13=3.8+(\sqrt{5+13})\) Identify the property of real numbers that is being illustrated.
-
Depreciation?SYD, Act., SL, and DDB the following data relate to the Plant Assets account of Eshkol, Inc. at December 31, 2010. *In the year an asset is purchased, Eshkol, Inc. does not record any...
-
Merchandise is purchased for $6,000 on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $200. What is the required payment if paid on September...
-
You have discovered that one of your closest friends at work has stolen a large sum of money from the company. Would you do nothing? Go directly to an executive to report the incident before talking...
-
McKee Ltd commenced trading on 1 January 20X0, selling a single type of imported DVD player. The companys opening statement of financial position is shown below: All assets are shown at cost on 1...
-
Describe the main conceptual differences between current cost accounting and current purchasing power accounting.
-
Calculate the test statistic and p-value for each sample. State the conclusion for the specified a. H0: = 200 versus H1: 200, = .025, x-bar = 203, s = 8, n = 16 b. H0: 200 versus H1: < 200, =...
-
Quary Company is considering an investment in machinery with the following information. Initial investment Useful life Materials, labor, and overhead (except depreciation) Depreciation-Machinery $...
-
What is personal selling in marketing communication channels? Explain it and give significant examples.
-
What are the regulatory frameworks governing the use of CRISPR-Cas9 in research and clinical applications, and how do they vary across different countries and regions ?
-
1. What is family support, how is it different from spousal support and child support, and what is its primary reason? 2. What is a Duke order? Under what circumstances will a court make a Duke...
-
Laws and regulations are important to the proper functioning of a public procure ment department. All relationships between suppliers and governments must incorporate the legal officer must...
-
What are the two reasons for recording closing entries?
-
Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...
-
In recent years, the McFarlane Company had severe cash flow problems. In 20X0, the company suspended payment of cash dividends on common stock . In 20X1, it ceased payment on its $3million par value...
-
ExxonMobil repurchased common shares during 2011 and, as a result, the Treasury Stock account increased by $20,324 million. The market price of ExxonMobil shares averaged $81.50 per share during the...
-
In what respects is preferred stock similar to debt and in what respects is it similar to common stock?
-
. 1. Harry Corporation manufactures Products J, K, L and M from a joint process. Additional information is as follows: If Processed Further Product Units Produced Market Value at Additional Marke...
-
Salrose Software Inc. has assembled the following data for the year ended December 31, 2020. (Click the icon to view the current accounts.) Requirement (Click the icon to view the transaction data.)...
-
Income Statement One Stop, Ltd. Income Statement Year Ended October 30, 2020 Revenues: Sales revenue Dividend revenue Expenses: EA $ 226,000 14,800 $ 240,800 Cost of goods sold 109,000 Salary expense...
Study smarter with the SolutionInn App