Answer: C. purchase of EFGH separately; and the sale of ABCD separately
Explanation:
Answer:
The correct answer is letter "C": The adjusting entry for deferred revenues increases revenues and decreases liabilities
Explanation:
Deferred Revenue is accrued payments that a corporation collects for goods or services that it has not yet produced or dispatched. Another term for deferred revenue is unearned revenue. Whereas normal payments for goods or services are recorded as revenue on the company's Income Statement, deferred revenue is recorded as a liability until the product is shipped.
For accounting purposes, <em>the adjusting entry for the deferred revenue by increasing an asset account (cash) with a debit and by increasing a liability account (unearned revenue) with a credit.</em>
Answer:
The answer is C. only liable on pre-formation debt until a novation occurs.
Explanation:
The corporation and the third-party agree to release the promoter from liability and to substitute the corporation in place of the promoter as the party liable on the contract. May be express or implied.
Answer:
6%
Explanation:
Data provided as per question is as given below:-
Redeemed amount = $1,000
Sale value of Bond = $687.25
Number of year = 5
The computation of interest rate is as shown below:-
Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1
= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1
= (1.338) ^ (0.2) - 1
= 0.06
= 6%
Answer: Congress gives too many tax breaks to corporations.
Explanation:
Normative statements are said to be statement of opinion and not fact.
Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.
The other options are statements of fact.
