Answer:
The answer is Accrual-basis accounting.
Explanation:
in cash basis accounting, transactions are recorded exactly at the moment when the cash is received or paid. so there won't be any issue with receivables and payable and there won't be any clash between the accounting time period and the transactions.
But in accrual based accounting, there can be instances where the time period and the time of transaction collide. for an example, if the year ends at on Dec-31st and the payments for sales are due by then, it becomes a receivable and accounted for like that.
because of this, there could be mismatches or mistakes in the accounting process when it's done under the accrual basis.
Answer:
The "normal" status of an account is due to the implicitly of the formula:
<em>assets = liabilities + equity.</em>
- The allowance for doubtful accounts is a contra account to accounts receivable,
- Accumulated depreciation is a reduction of fixed assets,
- And dividends are a reduction of equity
The accounts above are called "contra asset" accounts meaning that: is a negative asset account that offsets the asset account with which it is paired.
Answer:
c. interest expense of $107,361 and depreciation expense of $89,468.
Explanation:
The computation is shown below
The interest expense on lease is
= 8% of $1,342,016
= $ 107,361
ANd, the depreciation expense is
= (present value of lease payments at the closing of 10 years) - (salvage value) ÷ life of the asset
= ($1,342,016 - $0) ÷ 15 years
= $89,468
Hence, the option c is correct
Answer:
Problem Recognition.
Information Search.
Evaluation of Alternatives.
Purchase Decision.
Purchase.
Post-Purchase Evaluation
Explanation:
1. Problem Recognition: This relates to the existence and realization of the <u>need gap</u> between what they have and what they want.
2. Information Search: This is the next stage where the consumer begins to search for how to close the need gap.
3. Evaluation of Alternatives: After searching for available information on potential way(s) to meet the existing need, the product of the search could reveal numerous alternatives from which a choice will be made after thorough evaluation
Purchase Decision: This is the point where the choice is made from the available alternatives to buy one or not to buy any at all.
Purchase: After the decision, the purchase is made
Post-Purchase Evaluation: After a purchase decision, it is imperative that the customer gives feedback on whether or not they are satisfied with the decision that was made or not, to buy the product.
