The accrual-based income statement superior to a cash-based income statements in measuring profitability because It reports the expenses incurred in generating the revenues regardless of when the cash was paid.
What distinguishes the accrual basis of accounting from the cash basis of accounting?
When money is received or spent, it is recorded as revenue using the cash foundation of accounting. When using the accrual basis of accounting, revenues are recorded as they are earned and expenses as they are incurred.
What is an income statement with an accrual basis?
Accounting on an accrual system records revenue and corresponding costs as they are incurred, rather than when money is exchanged. Accordingly, businesses report revenue when it is earned rather than when it is received.
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Answer: Percentage increase is 87.02%.
Explanation: Percentage increase is calculated by subtracting the value in 2012 from the value of exports in 2011 and then dividing it by the value in year 2011.
a. Subtract value in 2012 from value in 2011
b. Divide the answer in part a by value in 2011.
c. Multiply the answer in part b by 100.
We have the percentage increase.
Answer:
Rent expense= $30,900
Explanation:
Non-refundable fee expense for year 2016 = $10,500 / 5
Non-refundable fee expense for year 2016 = $2,100
Annual rent expenses = Monthly rental * 12 month
Annual rent expenses = $2,400 * 12
Annual rent expenses = $28,800
Rent expense for year ended June 30, 2016 = Annual rent expense + Non-refundable fee expense for the year
Rent expense = $28,800 + $2,100
Rent expense = $30,900
With the straight line equation, we can assume y = household spending, x is the income earned monthly, and b would be the base amount spent per month ($1000). m = 1/2 of the income that is spent (additional spending).
Therefore our equation takes shape as follows:
y = 1/2($income) + $1000
In 2019, Sauder should record interest expense of $63,397.
Explanation:
- The equipment has an estimated useful life of 7 years and no salvage value. Sauder uses the straight-line method of depreciation for all of its fixed assets.
- The minimum lease payments were determined to have a present value of $833,972 at an effective interest rate of 10%.
- The easiest way to calculate the record interest expense is that to multiply a debt of a company by the average interest rate of its debts.
- Interest expense can be considered both as liability and also an asset.
- These items can be taken on the balance sheet, which can be completed from the accounting software.
- Interest occurred, but it has not been paid as according to the balance sheet date, it is referred to as the accrued interest. An interest rate that has incurred.
- In 2019, Sauder should record interest expense of $63,397.
