Answer: 4. The expenses incurred during a period are matched with the revenues that those expenses generated.
Explanation:
The accrual basis of accounting works by matching accounting transactions to the period that they occur in. For instance, if revenue is sold in year 1 but the cash for it is only received in year 2, the revenue will be recorded for year 1.
The matching principle falls under the accrual basis and matches the expenses in a period to the revenue that the expenses generated in that same period. This is why the expenses in the income statement are only those that occurred in the current period and expenses for future periods are put in the balance sheet.
Answer:
Option (B) is correct.
Explanation:
There is a positive relationship between the inflation rate and the nominal interest rate. When there is an increase in the inflation rate then as a result nominal interest rate also increases at a same rate. This means that people desire to hold less money because of higher nominal interest rate.
Suppose that nominal interest on a savings account is at 5% and inflation rate is at 3% then this means that money in the savings account grows at a 2% and this 2% is a real interest rate.
Answer:First and last months rent
Explanation:
<u>Explanation</u>:
Primates are known for their <em>exceptional display of intelligence</em>. This intelligence is seen in the kind of tools they use.
For example;
- chimpanzee are observed using stones for nut cracking,
- <u>probes</u> to obtain insects and
- <u>spears</u> to kill bushbabies.
- While the capuchin monkey also uses stones to dig for food.