Answer: See explanation
Explanation:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
The first year's net earnings under the cash basis of accounting will be:
Service revenue = $23400
Less: Expenses = $14310
Net income = $9090
The first year's net earnings under the accrual basis of accounting will be:
Service revenue = $29500
Less: Expenses = $15500
Net income = $14000
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.
Answer:
$33,630
Explanation:
Given that the company's collection history shows that 43% of credit sales are collected in month of sale and the remainder (57%) is collected in the following month then, in the month of January, Cash collections in January from December credit sales would be equivalent to 57% of December Credit sales. Using the actual figures,
Cash collections in January from December credit sales would be
= 57% * 59,000
= $33,630
The economy is currently in long-run equilibrium. If the central bank increases the money supply, in the long run the price level will raises.
<h3>What is long-run equilibrium?</h3>
The term “long-run equilibrium” is used in economics to represent a theoretical idea in which all markets are in equilibrium and all prices and quantities have fully adjusted to achieve equilibrium.
The long-run differs from the short-run, which has some limitations and markets that are not entirely balanced.
Currently, the economy is in long-run balance. If the central bank expands the money supply, the price level will rise in the long run.
Therefore, in the long run, the price level will raise as the central bank increases the money supply.
To learn more about the money supply, refer to:
brainly.com/question/14041873
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Okay so, i don’t know, i’m so sorry.
