Answer:
The answer is $155,000
Explanation:
Solution
Given that:
The Malpractice claims should accumulate an estimated loss by a charge to operations as soon as both the following conditions are :
1. There is a possibility that an asset has been weakened or a liability has been incurred.
2. The loss can be reasonably estimated
Thus
The Basic premium is = $150,000
The Additional premium is = $80,000 for first year as result of claims
So,
The insurance expense in first year is given as follows:
150,000/2 + 80,000
= 75,000+80,000
= $155,000
Therefore the amount of insurance expense that should appear on the financial statements at the end of the first year is $155,000
Answer:
A decrease in the balance of retained earnings.
Explanation:
Treasury stock transactions might cause: A decrease in the balance of retained earnings.
Treasury stocks refer to a transaction of redemption of shares. which is when a company buys back its own shares. This transaction leads to a reduction in the number of shares reported in the balance sheet and also retained earnings.
<u>The logic is that the company would have to use its own retained earnings to buy back its own shares.</u>
<u>This explains why treasury stock is subtracted from shareholders equity of which retained earnings is part, in the balance sheet.</u>
Answer:
increasing salary for fullfilling their demand
The answer is A. When both sides agree. You both have to agree to the same thing or there is no comprimise its just two peoples opinions...