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3 years ago

What effect will this adjustment have on the accounting records?

Business

1 answer:

12345 [234]3 years ago

6 0

Answer:

a.Increase Net Income

Explanation:

Unearned Revenue

The Accrual Principle requires Incomes and expenses to be recorded in the period they occur or incur.

Revenue not earned has not yet occurred and can not be recognized hence no effect on revenues reported for the period.

Fees earned

Fees earned represents increases in economic benefits from non primary activities of the company.

This has the overall effect of increasing Net income in the reporting period

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The King Corporation has total annual revenue of $800,000; expenses other than depreciation of $350,000; depreciation expense of

tatiyna

Answer:

Results are below.

Explanation:

<u>First, we will determine the net income for tax purposes:</u>

Sales= 800,000

Expenses other than depreciation= (350,000)

Gross profit= 450,000

Depreciation= (200,000)

EBT= 250,000

Tax= (250,000*0.34)= (85,000)

Depreciation= 200,000

Net income= 365,000

<u>Now, for reporting purposes:</u>

Gross profit= 450,000

Depreciation= (130,000)

EBT= 320,000

Tax= (320,000*0.34)= (108,800)

Depreciation= 130,000

Net income= 341,200

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3 years ago

While walking along a beach, Daniel notices that several girls are wearing large, round plastic sunglasses and the boys are wear

Shkiper50 [21]

Answer:

the correct answer should be A.

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4 years ago

g the three types of unemployment are A. voluntary, structural, and cyclical unemployment. B. frictional, structural, and cycl

Inga [223]

Answer: The three main types of unemployment are cyclical, frictional and structural unemployment. B

Explanation:

B. Cyclical and frictional are both related as they tend to cause more hardship because of its severity.

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3 years ago

A busy downtown hotel is distributing questionnaires to past visitors in order to develop ideas about how to improve its confere

ElenaW [278]

Answer:

The correct option is A. The hotel is collecting primary data.

Explanation:

Primary data can be defined as a kind of data that is collected from original resources rather than from articles or past researches. The easiest ways through which primary data can be collected is by surveys, interviews, questionnaires etc.

Based on the results from the primary data, results or conclusions can be drawn. For example, in the above question, the hotel is distributing questionnaires which is a source of primary data. Based on the results from these questionnaires, conclusions will be drawn and decisions will be made to improve the conference facilities and services.

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4 years ago

5. One-year interest rates are 2% in the U.S. and 5% in Canada. “Jackie the carry trader” borrows $3,000,000 to execute a carry

pogonyaev

Firstly convert $3000000 into CAD

So, CAD is 3405221.33938

Invest CAD in Canada 5% for 1 year
In t= 1yr realize canadian investment with interest so, CAD on maturity

= CAD 3405221.33938 (1+ 0.05)

= CAD 3575482.40634

Again now convert CAD into US $ so, equivalent US $ realised on conversion = CAD 3575482.40634 * $0.865/ CAD

= $ 3092792.28148

US repayment = $ 3000000*(1+ 0.02)

= $ 3060000

That's why,

Profit over the year = $3092792.28148- $3060000

= $32792.28148

B) doesn't depreciates relative to USD

C) appreciates relative to Canadian dollar

D) BEEX = US$ borrowings to be repaid with interest/ CAD realized with interest on maturity

= $3060000/ CAD 3575482.40634

= 0.8558

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7 0

2 years ago