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2 years ago

Assume a company has a $350 credit (not cash) sale. how would the transaction appear if the business uses accrual accounting?

1 answer:

6 0

The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

<h2>What is meant by accrual accounting?</h2>

This is what is also referred to as accrual based accounting. This type of accounting is one that has the transactions and all recorded in the books of accounts in such a way that they would reflect even though the service or the goods for which the payment is being made has not been received.

Hence from the explanation that we have here, the The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

Read more on accrual accounting here: brainly.com/question/14921038

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Develop an estimate for each of the following situations:_________. a. The cost of a 500-mile automobile trip, if gasoline is $3

kirill [66]

Answer:

A.$325

B.657000 hours

Explanation:

We can calculate the cost of a 500-mile automobile trip by adding the cost of gasoline burnt and the cost of wear and tear during the trip. Total number of hours of 75 years old can be calculated by multiplying the number of hours in a day with the total number of days in a year.

DATA

Gasoline per gallon = $3

Vehicle wear and tear = $0.50/mile

Miles per gallon = 20 miles

Hours in a day = 24hours

Days in a year = 365

Number of years = 75

Requirement A

Cost of a 500 mile automobile trip = Cost of gasoline + Cost of vehicle wear ]

Cost of a 500 mile automobile trip = $75 + $250 = $325

Working

Cost of gasoline = (500 miles / 20 miles) * $3 per gallon = $75 Cost of vehicle wear and tear = 500 miles * $0.50 per mile = $250

Requirement A

Total number of hours in 75 years of human life = Life in years x Number of days in a year x Number of hours in a day

Total number of hours in 75 years of human life = 75 years * 365 days * 24 hours = 657000 hours

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4 years ago

The term ________ refers to a company's efforts to reach distribution channels and target customers through communications such

amm1812

Answer:

A)social marketing

Explanation:

Social marketing involves all the activities a company does in order to reach more clients.

Activities such as relations, marketing through social media, personal selling (through the use of personal connections), direct marketing, etc.

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4 years ago

painting is acquired by an individual for use in his home. The painting is not of investment quality. It is later sold at a loss

lubasha [3.4K]

Answer:

The correct answer is e. a. and b.

Explanation:

Capital assets are assets of a permanent nature used in the production of income, such as machinery, buildings, equipment, land, etc. It must be distinguished from inventory.

Painting is a capital asset, but it is also a personal use activity asset sold at a loss. The loss is not deductible.

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3 years ago

If I make a lot of claims on my insurance, my insurance cost will probably go up.

tangare [24]

Answer:

true

Explanation:

because there will be so many claims that each time you make a claim it costs more.

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4 years ago

Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, a

noname [10]

Answer:

Miller-bond:

today: $ 1,167.68

after 1-year: $ 1,157.74

after 3 year: $ 1,136.03

after 7-year: $ 1,084.25

after 11-year: $ 1,018.87

at maturity: $ 1,000.00

Modigliani-bond:

today: $ 847.53

after 1-year: $ 855.49

after 3 year: $ 873.41

after 7-year: $ 918.89

after 11-year: $ 981.14

at maturity: $ 1,000.00

Explanation:

We need to solve for the present value of the coupon payment and maturity of each bonds:

Miller:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 80.000

time 12

rate 0.06

$80 \times \frac{1-(1+0.06)^{-12} }{0.06} = PV\\$

PV $670.7075

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 12.00

rate 0.06

$\frac{1000}{(1 + 0.06)^{12} } = PV$

PV 496.97

PV c $670.7075

PV m $496.9694

Total $1,167.6769

In few years ahead we can capitalize the bod and subtract the coupon payment

after a year:

1.167.669 x (1.06) - 80 = $1,157.7375

after three-year:

1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855

If we are far away then, it is better to re do the main formula

after 7-years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 80.000

time 5

rate 0.06

$80 \times \frac{1-(1+0.06)^{-5} }{0.06} = PV\\$

PV $336.9891

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 5.00

rate 0.06

$\frac{1000}{(1 + 0.06)^{5} } = PV$

PV $747.26

PV c $336.9891

PV m $747.2582

Total $1,084.2473

1 year before maturity:

last coupon payment + maturity

1,080 /1.06 = 1.018,8679 = 1,018.87

For the Modigliani bond, we repeat the same procedure.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 30.000

time 24

rate 0.04

$30 \times \frac{1-(1+0.04)^{-24} }{0.04} = PV\\$

PV $457.4089

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 24.00

rate 0.04

$\frac{1000}{(1 + 0.04)^{24} } = PV$

PV 390.12

PV c $457.4089

PV m $390.1215

Total $847.5304

And we repeat the procedure for other years

7 0

4 years ago