Answer:
B. The service increased assets and increased stockholders’ equity.
Explanation:
Revenue is earned as immediately the service agreed by the parties involved has been delivered whether cash has been collected or not.
The accounting equation shows the relationship between the elements of the balance sheet namely the assets, liabilities and equity.
Given that Boone’s Cleaning Service performed cleaning services during December 2014, but had not collected any cash from its customers as of December 31, 2014, the amount earned is recognized in revenue and accounts receivables as credits and debits respectively.
The effect of this on the accounting equation is an increase in equity(via revenue earned) and an increase in assets (account receivables)
Answer:
The correct answer is letter "C": there is some government influence over the workings of the free market.
Explanation:
A mixed economic system combines aspects of capitalism and socialism. A mixed economy is designed to drive economic activity through capitalists ventures while money is collected via taxation to maintain a nation's infrastructure and offer public services such as primary education, social welfare policies, and health insurance. It is said mixed economies have a free market but the government puts hands on it to provoke the free-market atmosphere.
Answer:
The journal entry on maturity is as follows:
Dr bonds payable $240,000
Cr cash $240,000
Being redemption of bonds
Explanation:
At the end of the life of the bond,the bond premium or discount would have been fully amortized,hence the only entry left to be made is to debit bonds payable account with face value of the bond and a credit of the same amount to cash account to record the outflow of cash.
The face value of the bond is $240,000,hence the $240,000 is debited to bonds payable in order to finally cancel the debt obligation.
Answer:
We know that the amount of money that individuals want to hold will: falls; falls; rises.
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Explanation:
