All categories

3 years ago

What is a real account?

Business

1 answer:

olga_2 [115]3 years ago

4 0

Answer:

A real account is an account that will not close at the end of the considered year. So apparently, balances in real accounts are carried over to become the the start of balances of the next year/period. Real accounts are also permanent accounts.

You might be interested in

1. The beta for Eastman Kodak is 1.10. The current six-month treasury bill rate is 3.25%. Estimate the cost of equity for Eastma

Afina-wow [57]

Answer:

1) Cost of equity is 12.501%

2) Price of bond is $935.82

3) Price of semi-annual bond is $934.96

Explanation:

1) Given:

Beta = 1.1

Risk free rate (Rf) = 3.25%

Market risk premium (Rp) = 8.41%

Using CAPM to compute cost of equity:

Re = Rf + β (Rp)

= 3.25 + 1.1(8.41)

= 12.501%

2) Price of bond is present value of bond.

Face value (FV) = $1,000

Maturity (nper) = 10 years

Coupon rate = 8%

Coupon payment (PMT) = 0.08× 1000 = $80

Discount rate (rate) = 9% or 0.09

Using spreadsheet function =PV(rate,nper,pmt,FV)

Price of bond is $935.82. It is negative as it's cash outflow

3) Price of semi-annual bond is present value of bond.

Face value (FV) = $1,000

Maturity (nper) = 10×2 = 20 periods

Coupon rate = 8% ÷ 2 = 4%

Coupon payment (PMT) = 0.04× 1000 = $40

Discount rate (rate) = 9% ÷ 2 = 4.5% or 0.045

Using spreadsheet function =PV(rate,nper,pmt,FV)

Price of semi-annual bond is $934.96

7 0

3 years ago

On August 1 of Year 1 Accounting Associates (AA) collected $1,200 cash for consulting services to be provided for one year begin

igor_vitrenko [27]

Answer:

c) Unearned Revenue $ 500, Revenue $ 500

Explanation:

When the cash was received on August 01, no accounting services were provided so the entry would have been:

Cash Debit $ 1,200

Unearned revenue Credit $ 1,200

Unearned Revenue is a liability account

On December 31, a recognition needs to be made for the services revenue earned and hence the amount for 5 months amounting is debited to unearned revenue and revenue credited with $ 500.

6 0

3 years ago

behaving in an acceptance manner within a workplace environment is refered to as a workplace etiquette. true or false

Goryan [66]

This statement is true

3 0

3 years ago

What is not typical of traditional costing systems?

charle [14.2K]

Answer: The options are given below:

A. Use of a single predetermined overhead rate.

B. Use of direct labor hours or direct labor cost to assign overhead.

C. Assumption of correlation between direct labor and incurrence of overhead cost.

D. Use of multiple cost drivers to allocate overhead.

The correct option is D.

Explanation: The traditional costing system refers to the allocation of factory overhead to products, and this is based on the total amount of production resources that have been consumed.

When using the traditional costing system, the overhead is usually applied based on either the total number of direct labor hours consumed or the total number of machine hours used.

The traditional costing systems treat overhead costs as a single pool of indirect costs. Traditional costing is optimal when indirect costs are low when in comparison with direct costs.

7 0

3 years ago

Abigail does not feel that the company is paying her enough money to live on, despite the fact that she works hard. The quality

Yanka [14]

The correct answer is hygiene factors. Hygiene factors is being describe as the job dissatisfaction that an individual feels for the job that he or she is in. The individuals are adequately addressed by this, they are likely not to be dissatisfied or will be satisfied.

5 0

3 years ago