A liability (such as salaries payable) will be increased. Expenses are increased. Net income is reduced.
<h3>What is liability?</h3>
What a person or business owes is known as a liability, and the amount owed is typically monetary. The transmission of economic rewards, such as money, products, or services, settles liabilities over time. Having to pay anything to someone else under the law is known as having a liability. To pay for a business's continuous operations, liabilities are incurred. Accounts payable, accumulated costs, owed wages, and owed taxes are a few examples of liabilities.
What your business has that has the potential to generate future financial benefits are its assets.
What you owe other people is your liability. To put it simply, assets increase your financial security while liabilities decrease it.
Obligations aren't always a terrible thing. Some loans are taken out to buy new equipment, such as machinery or automobiles, which aids small businesses in running and expanding.
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Answer:
When revenue has been received but the service has not been rendered, the revenue will not be recognized and will instead be treated as a liability called unearned revenue.
Date Account Title Debit Credit
Oct. 31 Cash $7,720,000
Unearned Ticket revenue $7,720,000
Date Account Title Debit Credit
Nov. 5 Unearned Ticket Revenue $1,930,000
Ticket Revenue $1,930,000
<u>Working </u>
Ticket revenue = 1/4 * 7,720,000
= $1,930,000
Answer:
The amount of cash provided by financing activities during the year is $545,000
Explanation:
Cash flow from financing activities is the cash inflows and outflows related to the fund of the business.
Cash Flow from financing activities
Inflows
Sold common stock $560,000
Sold preferred stock <u>$56,000 </u>
Total Cash inflows $616,000
Outflows
Company purchased treasury stock $47,000
Paid dividends on common and preferred stock <u>$24,000 </u>
Total Cash inflows <u>($71,000)</u>
Net Cash flows <u>$545,000</u>
Answer:
c.About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.
Explanation:
In a long run, The demand is more elastic than in a short run, this is because the consumers have both more time and number of substitutes to switch to. So almost 50% of long-run decrease in quantity demanded is due to less driving by people, while rest 50% is due to people switching to more fuel-efficient cars.
