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2 years ago

Adjusting Entries are:

Business

2 answers:

LekaFEV [45]2 years ago

6 0

Answer:

The answer is B.

Explanation:

Some business transactions are so huge or large to the extent that there might be omission or error in recording transactions when they occur.

Adjusting entries are done to update entries for previously unrecorded expenses or revenues. They are usually done at the end of the months.

Since accrual methods are the most preferred, they are done to make Financial statement achieve the objective of 'completeness'

julia-pushkina [17]2 years ago

4 0

Answer: B. updating entries for previously unrecorded expenses or revenues.

Explanation: Adjusting entries are updating for previously unrecorded expenses or revenues. They are entries used in recording business transactions that have taken place but have not yet been appropriately recorded in accordance with the accrual method of accounting—that recognizes revenue in the period in which it was earned and not when cash is received. It is also given as an entry in the general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the accounting period. The matching principle is used to match expenses to the related revenue within the same accounting period.

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Indicate the effect of each transaction during the month of October 2016 and the balances for the accounting equation after all

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Answer:

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3 years ago

Product modification occurs even when changes are made to a product's aesthetic appearance rather than its quality and functiona

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False :
because a product modification occurs when changes are made in how the product functions, its quality, or some aesthetic characteristic of the product.
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2 years ago

What is price elastic of supply

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2 years ago

During 2020, LAL Corp. had the following cash flows: (1) received cash of $5,000 billed to a customer in 2020; (2) earned $20,00

Juliette [100K]

Answer: $21,000

Explanation:

Financing activities refer to those that a company engages in, in relation to capital needed to run the affairs of the business which means it included Equity and Debt.

Financing Activities: Interest paid, dividends paid, money borrowed from bank, stock repurchase

Net cash flows from financing = Money borrowed from bank - Interest paid - dividends paid - Stock repurchase

= 50,000 - 6,000 - 8,000 - 15,000

= $21,000

4 0

2 years ago

The following are the income statements of the Hancock Company for two consecutive years. Increases in which expenses contribute

dsp73

Answer:

Increase in Administrative Expense of $3,300 additional led to loss in the year 2016.

Explanation:

As for the provided details:

Particulars 2016 2015

Revenue $30,000 $20,000

Cost of goods sold $17,800 $12,000

Gross margin $12,200 $8,000

Operating Exp

Selling Exp $4,800 $4,600

Admin. Exp $7,800 $3,000

Total operating exp $12,600 $7,600

Net Income ($400) $400

As we see the major difference which is irrelevant is in administration expense, that is because difference in cost of goods sold is somewhere justified as, when it calculated as a percentage of sale that is $12,000/$20,000 = 60%

Thus for year 2016 also the expense shall be $30,000 $\times$ 60% = $18,000

Thus, it is justified but for administrative expense $3,000/$20,000 = 15%

For 2016 = $30,000 $\times$ 15% = $4,500

But since it is very much exaggerated, by $7,800 - $4,500 = $3,300 this is the main reason of loss.

5 0

3 years ago