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3 years ago

The failure to properly record an adjusting entry to accrue an expense will result in an:

1 answer:

5 0

The failure to properly record an adjusting entry to accrue an expense will result in an understatement of expenses and an understatement of liabilities. This is further explained below.

<h3>What are expenses?</h3>

Generally, expenses are simply defined as what it would take or what it would cost to do anything.

In conclusion, Incorrectly recording an accrual adjustment entry will result in a misstatement of both costs and liabilities.

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A common practice for government entities, particularly schools, is to issue short-term (promissory) notes to cover daily expend

diamong [38]

This shorter payback period is positive and beneficial to the consumer, as it allows for harmony with amortization expenses.

We can arrive at this answer because:

A short payback period is beneficial because of its relationship to amortization, as long-term debt allows this amortization to take place.
These amortization expenses allow the cost of long-term assets to be represented in the payment.
However, when the short-term payback period allows for amortization, causing the asset's value to be reduced by the amount that will be paid by the consumer.

In this case, we can state that in cases like the one shown in the question above, the short payback period is very beneficial and interesting to the consumer, as it can promote economic benefits.

More information:

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3 years ago

The following information pertains to Carla Vista Company.

Setler [38]

Answer:

Bank account reconciliation:

Bank account balance $7,738

+ Deposits in transit $3,110

<u>- Outstanding checks $696 </u>

Reconciled bank account $10,152

Cash account reconciliation:

Cash account balance $7,774

+ Note (or account) collected $2,426

Reconciled cash account $10,152

Adjusting journal entries:

July 31, 202x, bank fees expense

Dr Bank fees expense 48

Cr Cash 48

July 31, 202x, bank fees expense

Dr Cash 2,426

Cr Notes (or accounts) receivable 2,426

3 0

3 years ago

. Currency options sold through an options exchange contain which of the following? a) a commitment to the owner and are standar

Debora [2.8K]

Answer: a) a commitment to the owner and are standardized.

Explanation:

Futures are generally traded through Exchanges as opposed to Forwards which are not.

Futures are a commitment to the owner to buy or sell an underlying asset and as they are sold at Exchanges, they are standardized to allow for easier trading. The prices that the sellers are to get are certain as the Exchange protects the transaction.

Unlike Forwards that can be tailor made to the specifications of the owner, Futures come as already made and standardized and so are not tailor made. This is to enable as many participants as possible.

This is why option A is correct because Futures contain a commitment to the owner and are standadized as well.

4 0

3 years ago

Elite Trailer Parks has an operating profit of $282,000. Interest expense for the year was $39,200; preferred dividends paid wer

AleksAgata [21]

Answer:

(a) $5.87 per share ; $1.585 per share

(b) $110,700

Explanation:

(a) Earnings per share:

= (Operating profit - Interest expense - tax - preferred dividends) ÷ common stock outstanding

= ($282,000 - $39,200 - $61,700 - $29,500) ÷ 25,800

= $151,600 ÷ 25,800

= $5.87 per share

Common dividends per share for elite trailer parks:

= Dividend paid ÷ common stock outstanding

= $40,900 ÷ 25,800

= $1.585 per share

(b) The increase in retained earnings for the year:

= $151,600 - common dividend paid

= $151,600 - $40,900

= $110,700

8 0

3 years ago

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan r

Sunny_sXe [5.5K]

Answer:

Date Account Title Debit Credit

31 Dec. Pension Expense $122,600

Unfunded pension liability $122,600

(To record the quarterly pension cost)

15 Jan. Unfunded pension liability $122,600

Cash $122,600

(To record the payment of accrued pension liability)

6 0

3 years ago