A company buys new computer equipment for 10 000 pounds. At the same time it buys 3

Fantastic news! We've Found the answer you've been seeking!

Question:

A company buys new computer equipment for 10 000 pounds. At the same time it buys 3 pens for 40 pence each. Define the following accounting conventions and explain how they would affect the recording of these transactions?

Historic cost convention

Materiality convention

There are 10 marks available for this question: 2 for each definition and 3 for each explanation

Related Book For answer-question

International Marketing

ISBN: 978-1452226354

1st edition

Authors: Daniel W. Baack, Eric G. Harris, Donald Baack

See More Books

Posted Date: Sep 03, 2020 10:00 PM

See More Questions

Define internal pricing, shadow pricing, and explain how they are different from one another.
Define an extension and a composition, and explain how they might be combined to form a voluntary settlement plan to sustain the firm. How is a voluntary settlement resulting in liquidation handled?
Define objectives, strategies, and tactics, and explain how they differ.
29. According to cognitive dissonance theory, why do people change their attitudes to match their behaviour? (1 Point) People guess their attitude from the O behaviour they see themselves performing...
A cantilever beam AB of length L = 6 ft is constructed of a W 8 x 21 wide-flange section (see figure). A weight W = 1500 lb falls through a height h = 0.25 in. onto the end of the beam. Calculate the...
Kibitz Fitness received $30,000 from customers on August 1, 2019. These payments were advance payments of yearly membership dues. Required: At December 31, 2019, calculate what the balances in the...
Discuss why it is important to report significant changes in a patients condition to the treating physician.
Peabody Cruiselines is preparing its statement of cash flows [indirect method) for the year ended March 31, 2016. Consider the following items in preparing the company's statement of cash flows....
On January 1 5 , 2 0 2 3 , Dave Quinn, a U . S . citizen, formed a GmbH in Germany to own and operate a building in Hamburg, Germany. Briefly discuss the answers to the following questions: a ....
Can someone please summarize the case study below: if you know about the case IKEA Looks to Further Penetrate the U.S. Market 10 CASE Synopsis: IKEA is known around the world for its stylish,...
An event manager is planning for food services during a large event He wants to set up food kiosks all around the events venue All kiosk will have the same menu offering a limited number of freshly...
3. Consider a derivative that gives the buyer an option to receive the average of the past stock price values (including today's price) by paying. 100 dollars. The stock currently trades at S(0) =...
3. You want to buy a car for $50,000. The dealership offers you one of two incentive packages: An interest free loan for 3 years. This involves paying $12,500 immediately as a down payment, followed...
In your management role in the treasury of a major financial institution (bank), you are approached by two corporations (Company X and Company Y) seeking your assistance in arranging an interest rate...
Explain the concept of leverage in finance, and provide an example of how it affects a companys financial statements. Leverage refers to the use of borrowed funds to increase the potential return on...
Suppose a 0 . 3 6 6 kg object is sliding on a frictional surface with k of 0 . 0 9 0 . What is the magnitude of the force of friction in N ?
Given the nested if-else structure below, what will be the value of after code execution completes x = 0 a = 0 b = -5 if a > 0: if b < 0: x = x + 5 elif a 5: X = X + 4 else: X = X + 3 else: x = x +...
ABC company leased new advanced computer equipment to STU Ltd on 1 January 2019.STULtd has to pay annual rental of $290,000 starting at 1 January 2019. It is a four years lease with ultimate rental...
Describe a transition economy.
Discuss the value considerations, emotional considerations, and situational factors associated with prices for the following items, specifically as they would relate to international marketing:
Describe the differences and similarities between dumping, penetration pricing, and predatory pricing. How might Weber's Law be relevant to this discussion?
A construction contract differs from contracts that we generally deal with that focus on an easily defined physical object because the physical object can be examined. How is the object of a...
What does the owner contribute to the project and what does the contractor contribute to the project?
For what type of project is a line-of-balance schedule particularly suited? Identify specific examples.

A company buys new computer equipment for 10 000 pounds. At the same time it buys 3

Question:

Expert Answer:

a Historical cost Convention Historical cost refers to the cost at the time of aquisition Since accounting is basically the recording of past happenin... View the full answer

International Marketing

Students also viewed these accounting questions