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2 years ago

on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.

1 answer:

6 0

Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue.

What Are Short-Term Investments?

Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
Typically, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also specifically refer to financial assets of a similar kind, but with a few additional requirements, that are owned by a company.

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According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve in

sladkih [1.3K]

the horizontal portion of the aggregate supply curve.

What is GDP?

The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

Even while GDP is frequently estimated on a yearly basis, it can also be calculated quarterly. For instance, the government of the United States produces an annualized GDP estimate for both the calendar year and each fiscal quarter. Each piece of data in this report is presented in real terms, which means that it has been adjusted for price changes and is therefore net of inflation.

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5 0

2 years ago

For Accounts Payable denominated in a foreign currency, an increase in the direct exchange rate (dollar has weakened) results in

Gala2k [10]

True.

For Accounts Payable denominated in a foreign currency, an increase in the direct exchange rate (dollar has weakened) results in an exchange gain.

<h3>What is an exchange gain or loss?</h3>

A change in the exchange rate between the time an invoice was issued and the time it was paid results in an exchange gain or loss.
An exchange gain or loss results when an invoice is entered at one rate and paid at another.

The exchange rate at which the consumer pays for this invoice will ineluctably differ from the rate at which you recorded the invoice in your accounting system, even though you will have appropriately converted your prices.
The cash you receive will be considerably more than what you initially invoiced as a result.
This difference is known as an exchange gain or loss depending on which way the exchange rate has gone, i.e. whether the currencies involved have appreciated or depreciated in value (a gain or loss).

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6 0

2 years ago

What is the key to economics? Explain.

Lady_Fox [76]

Answer:

At the most basic level, economics attempts to explain how and why we make the purchasing choices we do.

Explanation:

this was a answer from my school

6 0

3 years ago

Read 2 more answers

Larned Corporation recorded the following transactions for the just completed month.

lara [203]

Answer:

1. Dr Raw materials $80,000

Cr Account payable $80,000

2. Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

Cr Raw materials $71,000

3. Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

Cr Cash $112,000

4. Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

Explanation:

Preparation of Journal entries

1. Based on the information given we were told that the amount of$80,000 in raw materials were been purchased on account which means that the Journal entry will be :

Dr Raw materials $80,000

Cr Account payable $80,000

(Raw materials purchased on account)

2. Based on the information given we were told that the amount of $71,000 in raw materials were been used in production in which the amount of $62,000 was for used for direct materials while the remaining was for indirect materials which means that the Journal entry will be:

Dr Work-in-Process $62,000

Dr Manufacturing overhead $9,000

(71,000-62,000)

Cr Raw materials $71,000

(raw material charged to production)

3. Based on the information given we were told that the Total labor wages amount of $112,000 were been paid in cash in which the amount of $101,000 was for direct labor while the remaining was for indirect labor which means that the Journal entry will be :

Dr Work-in-Process $101,000

Dr Manufacturing overhead $11,000

(112,000-101,000)

Cr Cash $112,000

(Wages charged to production)

4. Based on the information given we were told that the Depreciation of the amount of $175,000 was incurred on factory equipment which means that the Journal entry will be :

Dr Manufacturing overhead $175,000

Cr Accumulated depreciation $175,000

(Depreciation charged)

4 0

3 years ago

quisletYour 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to g

Ilia_Sergeevich [38]

Answer:

Nothing

Explanation:

The reason is that the contract is not formed between my brother and the car seller because the legal requirement to form a contract is 18. So the car seller lacks right to sue my brother for non complaince with the terms and conditions agreed.

6 0

3 years ago