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Aleonysh [2.5K]
3 years ago
5

Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid

the $4,800 premium on a two-year insurance policy with benefits beginning on that date. The company uses the accrual basis. How much insurance expense will be reported on the company's income statement for the year ended December 31, 2019? a) $200 b) $2,200 c) $4.600 d) $4,800
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

Correct answer is letter B, $2,200

Explanation:

Using accrual basis method, revenue and expenses will be recognized when incurred.

The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)

An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.

($4,800 / 24 months = $200 x 11 months = $2,200)

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Franchisee

Explanation:

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This business arrangement is legally binding an it gives right to the use of the business name , logo ,and model to third party retail outlet.

This explains the type of business arrangement that Sana is planning , considering the explanation given in the question.

8 0
4 years ago
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: When you go looking for a job after graduation, what sources do you expect to use? Why?
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Answer:

you can use different types of research n ask people about information

Explanation:

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3 years ago
Indicate whether each of the following creates a demand for or a supply of European euros in foreign exchange markets:__________
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Answer:

A: Demand of euros in foreign market.

B: Supply of Euros

C: Demand of Euros

D: Demand of Euros

E: Supply of Euros

F: Demand of Euros

G: Supply on Euros.

4 0
3 years ago
Stock R has a beta of 1.8, Stock S has a beta of 0.75, the expected rate of return on an average stock is 9%, and the risk-free
PIT_PIT [208]

Answer:

Stock R more beta than Stock S = 4.2%

Explanation:

given data

Stock R beta = 1.8

Stock S beta = 0.75

expected rate of return = 9% = 0.09

risk-free rate = 5% = 0.05

solution

we get here Required Return

Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta  ...........1

Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B

Required Return (Re) =

so here

Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8

Stock R = 0.122  = 12.2 %

and

Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75

Stock S =  0.08 = 8%

so here more risky stock is R and here less risky stock is S

Stock R is more beta than the Stock S.

Stock R more beta Stock S =  12.2 % - 8%

Stock R more beta Stock S = 4.2%

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3 years ago
3 Balance sheet items for Nadew Travel Service were as follows at Dec. 31, 2018. Accounts payable Br. 23,100 Land Br. 90,000 Acc
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Answer

1, 2018. Accounts payable Br. 23,100 Land Br. 90,000 Accounts receivables 52,000 Notes payable 100,900 Building 54,800

Explanation:

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