Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The purpose of this exercise is to demonstrate the matching principle in a familiar setting. assume that you own a car that you drive about

The purpose of this exercise is to demonstrate the matching principle in a familiar setting. assume that you own a car that you drive about 24,140.1 km each year

a. list the various costs to you associated with owning and operating this car. make an estinmate of total annual cost of owning and operating the car, as well as the average cost-per-km you drive.

b. assume that you have a part-time job. you usually do not use your car in this job, but today your employer asks you to drive 160.934 km (round-trip) to deliver some important documents. Your employer offers to "reimburse you for your driving expenses" You already have a full tank of gas, so you are able to drive the whole 160.934 km without stopping and you dont actually spend any money during the trip. does this mean that you have incurred no "expenses" for which you should be reimbursed? explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, David Hatherly, Jon Simon

3rd Edition

0470018259, 9780470018255

More Books

Students also viewed these Accounting questions

Question

Does your message reiterate its main idea?

Answered: 1 week ago