Answer:
C. Interest expense 90
Explanation:
In accrual method of accounting, expenses and revenue is recognised when they are incurred or earned and not necessarily when cash has gone out or come in.
Adjusting entries are used to recognise expenses or revenue at a particular period.
If Mama's pizza borrowed $6,000 in May 2021. Principal and interest is due in October 2021 (that is in 6 months).
The interest for the 2 months May and June will be calculated.
Accrued interest will be
I = principal* rate*time
I= 6,000* 0.09* 2/12
I= $90 for the 2 month period
Answer:
a) Jackie's accounting profit of just zero, her revenue have to be $5000
b) The revenue would give Jackie an economic profit of just zero is $67,000
Explanation:
a) $5,000 is the only cost that would have to add to the accounting profit calculation, which is the cost of upgrading her computer equipment every year as she runs the business out of a room in her home. For her accounting profit to be just equal to zero, her total revenue would have to be $5,000 to meet the requirement.
b) Total revenue is $67,000, which includes the cost of equipment upgrade, the opportunity cost of not renting out the room, and the opportunity cost of Jackie’s time. All the costs that will add to the calculation for the economic profit of the company. Jackie’s total revenue would have to be $67,000 to be just zero to meet the requirement.
Answer:
Your credit report will contain things like personal information, credit account history, credit inquiries, and public records.
Explanation:
Answer:
The correct option is C,when they are viewed from the perspective of the parent firm.
Explanation:
In translating the foreign currency denominated subsidiary into parent's company presentation currency,the values of the subsidiary assets and liabilities change in order that the group financial performance(income statement) and position(balance sheet ) can be presented in one single uniform currency such that it is much easier for stakeholders to view the combined entity results in one single document.
This would accord the stakeholders to take important decisions on the entity as whole ,for instance a buy/divest decision.
Answer:
the annual financial advantage (disadvantage) for the company of eliminating this department is $18,500
Explanation:
the computation of the annual financial advantage (disadvantage) for the company of eliminating this department is as follows:
Annual financial Advantage (disadvantage) = $37000 - ($74000 - $18500)
= $37000 - $55,500
= $18,500
Hence, the annual financial advantage (disadvantage) for the company of eliminating this department is $18,500
