All categories

1 year ago

What accounting method should hariette choose when she runs the profit and loss report?

1 answer:

4 0

Hariette should choose cash basis of accounting when she runs the profit and loss report. A company's reporting guidelines and practices for revenues and expenses make up its accounting method. Cash accounting and accrual accounting are the two primary accounting techniques.

Revenues and costs are recorded in cash accounting when they are received and paid. There are three different accounting methods: modified cash basis, cash basis, and accrual basis. Let's briefly review the fundamentals before we discuss which types of firms use certain accounting techniques.

If you only consider popularity, accrual accounting comes out on top since it is both the most popular and the most accurate techniques.

To learn more about accounting, click here.

brainly.com/question/13310721

#SPJ4

You might be interested in

Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, Januar

drek231 [11]

Answer:

$31,000

Explanation:

Calculation for the cash received from Dividend

Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable

Hence,

Using this formula

Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable

Let plug in the formula

= 3,100+32,300-4,400

=31,000

Therefore the amount of cash received from dividend will be $31,000.

Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.

4 0

3 years ago

You are given the following information about a portfolio you are to manage. For the long term, you are bullish, but you think t

Ira Lisetskai [31]

Answer:

sell 1.714

Explanation:

The computation of the number of contract buy or sold to hedge the position is shown below:

As we know that

Number of contracts = Hedge Ratio

Hedge Ratio = Change in Portfolio Value ÷ Profit on one future contract

where,

Change in the value of the portfolio is

For that we need to do following calculations

Expected Drop in Index is

= (1200 - 1400) ÷ 1400

= -14.29%

And, Expected Loss on the portfolio is

= Beta × Expected index drop

= 0.60 × (-14.29%)

= -8.57%

So, the change is

= 1000000 × (-8.57%)

= -$85,700

And, the profit is

= 200 × 250 multiplier

= 50,000

So, the hedging position is

= -$85,700 ÷ 50,000

= -1.714

This reflects the selling position

3 0

2 years ago

If the elasticity for computers at the current price is at 6.4, what would happen to total revenues if a computer manufacturer d

MA_775_DIABLO [31]

They would go down drastically fast.

5 0

3 years ago

Read 2 more answers

a bacteria population starts with 200 bacteriaa and grows at a rate of r(t) = (450.268)e 1.12567t bacteria per hour. How many ba

Virty [35]

Answer:

11,513

Explanation:

Data provided in the question:

Initial bacteria = 200

Growth rate r(t) = $(450.268)e^{1.12567t}$

Now,

Total growth after 3 hours = $\int\limits^3_0 {(450.268)e^{1.12567t}} \, dt$

Total growth after 3 hours = $450.268\int\limits^3_0 {e^{1.12567t}} \, dt$

Total growth after 3 hours = $450.268[\frac{e^{1.12567t}}{1.12567}]^3_0$

[ ∵ $\int{d(e^x)}{dt}=\frac{e^x}{\frac{dx}{dt}}$ ]

Thus,

Total growth after 3 hours = 400 × $[{e^{1.12567t}]^3_0$

Total growth after 3 hours = 400 × $[{e^{1.12567(3)}-e^{1.12567(0)}]$

Total growth after 3 hours ≈ 11313

Hence,

Total bacteria after 3 hours = Initial bacteria + Total growth after 3 hours

= 200 + 11313

= 11,513

4 0

3 years ago

2. Chico Co. sold $4 million of 10-year bonds on December 31, 2015, with interest payable June 30 and December 31 at an annual r

Aleonysh [2.5K]

Answer:

The requirement of the question is provided below:

a. What were the proceeds received by Chico upon the sale of the bonds?

b. Prepare the entry made by Chico to record the sale of the bonds on December 31, 2015.

The proceeds from the issue is $4,498,488.41

The entries are:

Dr Cash $4,498,488.41

Cr Bonds payable $4,000,000

Cr Premium on bonds payable $498,488.41

Explanation:

The first task here is to determine the proceeds from the issue, which can be done using the present value formula in excel.

=pv(rate,nper,pmt,fv)

rate is the effective rate of 10% divided by 2,since coupon is paid twice a year.

nper is the time to maturity of 10 years multiplied by 2

pmt is the coupon payment paid twice a year, that is :12%/2*$4000,000=$240,000

fv is the value expected by investors upon redemption that is $4 million

=-pv(5%,20,240000,4000000)

pv=$4,498,488.41

5 0

3 years ago

Read 2 more answers