All categories

3 years ago

Rent expense that is paid with cash appears on which of the following statements?

Business

1 answer:

GaryK [48]3 years ago

6 0

Answer:

(E) Both B and D

Explanation:

Any expense related to current year will be part of income statement, as whether paid or not, therefore, option B is correct.

Now, when any expense is paid in cash it decreases the cash balance and accordingly shall be shown as part of operating activities in cash flow statement.

Under indirect method of cash flow statement, net income is considered under which, rent expense is already deducted, therefore, no separate treatment required, and in direct method, the treatment is to deduct such cash paid under operating activities.

Thus, it will also be part of cash flow statement.

Therefore, correct option is

(E) Both B and D

You might be interested in

Why is it important to look at external sources of information when exploring product and service information?

kolbaska11 [484]

Internal data is from within the company, like operations and sales figures. External data comes from looking at the market, such as consumer trends, and marketing research. It is important to consider external data because it gives companies a better picture of their customers and competitors.

5 0

3 years ago

June 1 Stockholders invested $21,800 cash in the business in exchange for common stock. 2 Purchased a used van for deliveries fo

True [87]

Answer:

June 1st

Cash 21,800 debit

Common Stock 21,800 credit

June 2nd

Van-automobile 14,200 debit

Cash 4,000 credit

Note payable 10,200 credit

June 3rd

Rent expense 400 debit

Cash 400 credit

June 5th

Accounts receivables 5,200 debit

Sales Revenue 5,200 credit

June 9th

Dividends 300 debit

Cash 300 credit

June 12th

Supplies 200 debit

Accounts Payable 200 credit

June 15th

Cash 1,400 debit

Accounts receivables 1,400

June 17th

Gasoline expense 200 debit

Accounts Payable 200 credit

June 20th

Cash 1,300 debit

Service Revenue 1,300 credit

June 23th

Note payable 600 debit

Cash 600 credit

June 26th

utilities expense 350 debit

cash 350 credit

June 29th

accounts payable 200 debit

cash 200 credit

June 30th

salaries expense 1,730 debit

cash 1,730 credit

Explanation:

Rules to perform journal entries:

credit = debit

also there should be at lease one account on debit and one in credit.

We must also remember that debits must be enter first.

Also, each acount must represent a single event or stuff. It cannot represent both stuff.

7 0

4 years ago

Which of the following most correctly demonstrates the opportunity cost of

Svetllana [295]

The opportunity cost of choosing to live in a rural area instead of an urban area is the accessibility to greater choices which is in terms of entertainment, food, and shopping. Thus, statement B is correct.

<h3>What do you mean by opportunity cost?</h3>

In microeconomic theory, the opportunity cost of a particular activity alternative is the loss of price or advantage that could be incurred through engaging in that activity, relative to engaging in an alternative activity providing a better return in value or advantage.

The opportunity cost of choosing to live in a rural area instead of an urban area is the accessibility to greater choices in terms of entertainment, food, and shopping. Thus, statement B is correct.

Learn more about Opportunity cost here:

brainly.com/question/1549591

#SPJ1

3 0

2 years ago

Our credit card company quotes you a rate of 14.9%. interest is billed monthly.What is the actual rate of interest you are payin

Anna11 [10]

Answer:

15%

Explanation:

because most company don't want to calculate interest of decimal number so they rounded it

8 0