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MrRissso [65]
3 years ago
14

If a journal entry and posting for accrued interest that incurred during this year but will be paid until next year is accidenta

lly omitted, what would be the impact on the financial statements?
Business
1 answer:
leva [86]3 years ago
7 0

Answer:

The correct answer is: Net Income would be overstated and Balance Sheet liabilities would be understated.

Explanation:

The Income Statement is a report that measures a company's financial performance over a specific accounting period. The Income Statement is also known as the Profit & Loss Statement and Earnings Statement. The Income Statement reflects the company's <em>revenues and expenses</em> during a certain period.

Thus, <em>if deferred interest is not recorded in the Income Statement, the Expenses and Liabilities will be understated and the Net Income would be overstated</em>.

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To protect certain fledgling industries, the government of country Z banned imports of the types of products those industries we
KIM [24]

Answer;

A

Explanation:

two types of industries are made mention of in this question.

1)Local Fledgling Industries

2)Export Dependent Industries,who are being forced to buy products from local industries now.

Since the Government has placed a ban on the importation of the products that are being made by the local fledgling industries. The implication of this is that:

1. Buyers of those import products will experience a rise in the Cost of those products as the competition faced by the Fledging industries decreases.

2. Competing becomes difficult for Export dependent industries. This is because of inflation. They now have to buy the same product at an inflated cost, thereby reducing profits.

7 0
3 years ago
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Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt
Fittoniya [83]

Answer:

a. Mullineaux's WACC = 0.60*12 + 0.05*5 + 0.35*7*(1 - 0.35)

WACC = 7.2 + 0.25 + 0.35*7*0.65

WACC = 7.2 + 0.25 + 1.5925

WACC = 9.0425%

WACC = 9.04%

b. After tax cost of debt = 7*(1 - 0.35)

After tax cost of debt = 7*0.65

After tax cost of debt = 4.55%

So since after tax cost of debt of 4.55% is less than the preferred cost of 5%, company should use debt in its capital structure.

8 0
3 years ago
What are the function of a refrigerator ​
USPshnik [31]

Answer:

The Purpose of Refrigeration. The fundamental reason for having a refrigerator is to keep food cold. Cold temperatures help food stay fresh longer. The basic idea behind refrigeration is to slow down the activity of bacteria (which all food contains) so that it takes longer for the bacteria to spoil the food.

3 0
3 years ago
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Which of the following loans typically have the highest interest rate? Car loan, credit card, payday loan, mortgage
Ann [662]
Payday loans typically have the highest interest rate. APEX
3 0
3 years ago
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g A monopoly may exist because Question 21 options: a) government has refused to grant a public franchise. b) one firm has the e
matrenka [14]

Answer:

B. one firm has the exclusive ownership of a scarce resource.

Explanation:

Monopoly can be regarded as market structure whereby a single seller thrives, this is a structure whereby the seller sells a unique product in the market. As far as monopoly market is concerned, no competition is been encontered by the manufacturer , because he is the only one selling goods with no close substitute. As a result of this there is restrictions of the entry of other sellers in the market.

It should be noted that monopoly may exist because one firm has the exclusive ownership of a scarce resource.

5 0
3 years ago
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