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Lady_Fox [76]
1 year ago
8

Multiple Choice Question Tresses, Inc., which has a December 31 year end, lent $1,000 on December 1 to an employee at 6% due in

6 months. When will Tresses record Interest Revenue? It will record ______. Multiple choice question. an adjusting entry on December 31 with a debit to Interest Receivable and credit to Interest Revenue for the interest generated in December a daily entry with a debit to Interest Receivable and credit to Interest Revenue for each day's interest generated interest earned on the payment date with a debit to Cash and credit to Interest Revenue for the 6 months of interest generated
Business
1 answer:
maria [59]1 year ago
3 0

Adjusting entry on December 31 with a debit to Interest receivable and credit to Interest Revenue for the interest generated in December.

<h3>What is an Adjusting entry?</h3>
  • Adjusting entries and journal entries used in accounting and accounting to assign income and expenditure to the period in which they actually occurred.
  • They are often made at the end of an accounting period. Under accrual-basis accounting, the revenue recognition principle serves as the foundation for adjusting entries related to unearned and accrued revenues.
  • Because they are done on balance day, they are occasionally referred to as balance day adjustments.
  • Revenues and related costs are recorded in the same accounting period according to the matching concept of accrual accounting.
  • The actual money, however, can be received or paid at a separate period.
<h3>What is Interest receivable?</h3>
  • The amount of interest that has been earned but has not yet been paid out in cash is known as interest receivable.
  • Many organizations won't record this number because they believe it to be irrelevant.

Therefore, it will record an Adjusting entry on December 31 with a debit to Interest receivable and credit to Interest Revenue for the interest generated in December.

Know more about Interest receivables here:

brainly.com/question/24696035

#SPJ4

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Answer:

C. As the year 2000 approached, investors became wary of computer programs that might not be able to handle the changing century, causing investors to panic and sell and sending stock prices plummeting.

Explanation:

im sorry if im wrong i did some reasearch and that what i found

3 0
2 years ago
Assuming that there are no income taxes, what would be the ROI and residual income, respectively, for this equipment, which has
anygoal [31]

Please see complete question below :

CPA-08299: Managers of the Doggie Food Co. want to add a bonus component to their compensation plan. They are trying to decide between return on investment (ROI) and residual income (RI) as the performance measure they will use. If Doggie adopts the RI performance measure, the relevant required rate of return would be 18%. One segment of Doggie is the Good Treats division, where the manager has invested in new equipment. The operating results from this equipment are as follows:

Revenues $ 80,000

Cost of goods sold 45,000

General and administrative expenses 15,000

Assuming that there are no income taxes, what would be the ROI and RI for this equipment that has an average value of $100,000?

ROI RI

Answer:

ROI =  20% and RI = $2000

Explanation:

Return On Investment(ROI) = Profit before Interest & Tax/Average Investment

Profit before Interest & Tax (PBIT) = Revenue -cost of goods sold- General & Adm expenses

PBIT= $ 80,000 - $45,000 -$15,000

      = $20,000

ROI = ($20,000/100,000) * 100% = 20%

Residual Income = PBIT - (Average Investment* Required Rate of Return)

                            =$20,000- (18%* 100,000)

                           =$20,000- $18,000

                           = $2000

5 0
3 years ago
Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per yea
emmainna [20.7K]

$45,000 per year is the economic cost of the time he contributes to the new business.

<h3><u>Explanation:</u></h3>

The difference between the accounting cost and the implicit cost refers to the economic cost. Implicit cost refers to the opportunity cost that the person incurs when he makes a choice. For example consider Geetha is spending something for watching a movie. The cost that she spends for the movie and the cost that can be forgone by her when she spends that for some other things will be included in the economic cost.

In the example given Jim  was earning d $70,000 per year and now he is paying himself  $25,000 per year for building a new business. Thus the economic cost will be $70,000 -$25,000 = $45,000 per year. Here the accounting cost is  $70,000  and the implicit cost is $25,000.

8 0
2 years ago
If the government tightens up on drug dealers and raises the costs of dealing illegal drugs, then the drug addicts' dollar expen
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Answer:

D

Explanation:

I'm sure the question was geared toward teaching you the difference between elastic and inelastic.

If your demand for a product does not change even if the price goes up, then the demand is considered to be inelastic.

However, the question posed to get this teaching point across made the answer almost impossible.  A drug addict's demand can drastically change from day to day depending on how readily that person can get hold of the money needed.  One day money may not be a problem so the expenditure will increase because their demand is price-inelastic.  The very next day the person may not be able to find any money at all.  Therefore, the expenditure will decrease because their demand is price-elastic

4 0
2 years ago
What could go wrong?
SpyIntel [72]

Answer:

brand risk, demand risk, price risk, product development

Explanation:

marketing risk is a potential for losses and failures in marketing.

brand risk : this is the risk that the product would lose it value due to competition and failures in declining brand awareness. it is likely to to affect a new product if prevailing measures are not taken to curb such risk.

demand risk: this is the risk that the demand for the product being advertised will fall or fail to materialized. this is likely to occur when there is a shift in customer needs or choice.

price risk: this is related to a risk that the price tag on the product campaign may vary higher than competitor price.

product development: this risk is related to launching and developing a new product. there is likely hood that new product has a higher percentage of not succeeding in the market.

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