1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
konstantin123 [22]
3 years ago
5

The Blue Nile Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 15 comma 000 for twelv

e months of advertising. How much advertising expense should Blue Nile Law Firm record for the two months ending February 28 under the a. cash​ basis
Business
1 answer:
Arada [10]3 years ago
6 0

Answer:

a. Cash basis $15,000

b. Accrual basis $2,500

Explanation:

Under the cash basis of accounting, expenses are recorded or recognized in the books not necessarily when incurred but when cash is paid. This is not in line with the matching concept which requires that expenses be recognized the  period it is incurred as well as the resulting revenue.

Hence, the $15,000 paid on January 1  would have been recognized as an expense for the two months ending February 28 using the cash basis.

Using the accrual basis, monthly expense

= $15,000/12

= $1,250

Hence advertising expense for 2 months

= 2 * $1,250

= $2,500

You might be interested in
HELP HELP HELP 10 POINTS
kobusy [5.1K]
First drop down box: Mission
Second drop down box: Measurement
4 0
3 years ago
Investments and loans base their interest calculations on one of two possible methods: the the interest and interest methods. Bo
Ghella [55]

Answer:

  • Compound Interest ⇒ FV = PV x (1 + I ) ^N
  • Simple Interest ⇒ FV = PV x I x N

Explanation:

With compound interest the rate of growth needs to be compounded which is why the time period is used to exponentially adjust it.

With simple interest there is no compounding so the value is simply the interest that will be earned every period (which is a constant value) multiplied by the number of periods and the amount to be invested.

3 0
3 years ago
Measuring business activities and reporting those measurements to external parties is the function of ______ accounting.
Andru [333]

Answer:

Financial

Explanation:

Basically, there are two forms of accounting for measuring business activities namely; Financial accounting and Management accounting.

Financial accounting involves the measurement of the business activities over a period using a defined framework or standard such as US GAAP, IFRS, etc. This is usually presented in a form of statements called the financial statements and is used by internal and external stakeholders such as Government, creditors, shareholders etc.

Management account is usually prepared for management purposes and measures the company's actual activities against the budget or plan.

The right answer is financial accounting.

3 0
3 years ago
If import restrictions remain in effect after an infant industry becomes competitive in the domestic​ market, consumers in this
sertanlavr [38]

Answer: higher than

Explanation: The stockholders of companies in the infant industry gain when they are protected from world competition

-Consumes in that country will therefore pay a price higher than the world price.

8 0
3 years ago
In Marubeni America Corp. v. United States, the federal appellate court ruled that the Nissan Pathfinder was, for tariff classif
Hitman42 [59]

Answer: the tariffs will vary depending on the classification.

Explanation:

Tariff is a form of tax that is usually imposed on the imports that are brought from other countries to a particular country.

With regards to information provided in the question, the classification of goods is significant because the tariffs will vary depending on the classification.

6 0
3 years ago
Other questions:
  • In the context of statutorily mandated arbitration, why has arbitration become widespread during the last few decades?
    13·1 answer
  • What is the change in quantity supplied when price increases from $0.75 to $1.50?
    7·1 answer
  • Complete the following sentence.
    12·1 answer
  • Quince products is a small company in southern california that makes jams and preserves. recently, a sales rep from one of the c
    7·1 answer
  • 1. Why do companies frequently expand their business operations into other countries?
    6·1 answer
  • On January 1 2016, Paulus Company purchased 75% of Sweet Corporation for $500,000. Sweet’ stockholders’ equity on that date was
    14·1 answer
  • Modern Railways Co. operates a cargo railroad service between New York and Boston. A train owned by Modern Railways derails due
    14·1 answer
  • Suppose that the price of labor is $7 for a firm, while the price of capital for a firm is $10. Also suppose that the Marginal P
    12·1 answer
  • Evaluating your data involves examining it in terms of reliability, relevance, expertise, adaptability, and biases.
    12·1 answer
  • Katniss works for the Panem Bureau of Economic Analysis. Panem produces three goods: bread and axes, as well as wheat, which is
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!