Answer:
The correct answer is d. net income will be understated.
Explanation:
The accumulated or accrued income will be represented by those that have been earned during a financial year but that have not been received or recorded in the payment, because the term has not yet expired. If they are not recognized within the accounting year, it is said that the income item is being underestimated, and for that reason the information in the financial statements is not being faithfully represented.
Answer:
$215,000
Explanation:
Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Any prior years adjustment in the revenue and expense will be recorded in the retained earning because it carry the accumulated profit all the prior years.
The premium on insurance for only one year should be recorded, but premium of 3 years is expense in 2020, from which there is an advance premium of 2 years.
Adjustment Value = $30,000 x 2/3 x (1-0.25) = $15,000
The adjustment should be added in the retained earning balance as it was expensed earlier.
Adjusted retained earning balance = $200,000 + $15,000 = $215,000
• For the first question, the answer is Letter C. The Gift and estate taxes are called wealth transfer taxes because gift and estate taxes are levied when a transfer of wealth or property takes place and are part of the unified transfer tax system.
• For the second question, the answer is Letter C. The tax base for the gift tax is reasonable market value of all gifts completed in the current year minus an annual donee elimination of $14,000, minus a marital deduction for gifts to spouse and charitable deduction if applicable, plus the value of all taxable gifts in preceding years. The tax base for the estate tax is the gross estate of the decedent, minus deductions for expenditures, and a marital or charitable deduction if applicable, plus taxable gifts made after 1976.
D. You should always check before if there would be delays
Answer:
i and iii
Explanation:
Nondiversifiable risk or systemic risk is risk that cannot be eliminated by diversifying investments in a portfolio. It is the risk inherent in the industry. it is measured by beta in the CAPM.
Diversifiable risks are risks that can be avoided by diversifying investments in a portfolio. It is also known as business risk
