THE ANSWER WOULD BE FALSE IVE TRIED TRUE AND IT WAS WRONG!
Question Completion:
If Delicious Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.
Answer:
Delicious Catering
Using the Accrual method, Delicious Catering would have recorded for the month a net income of $1,670.
Explanation:
Data and Calculations:
Prepaid Rent for 3 months = $1,500
Rent expense for the month = $500 ($1,500/3)
Utilities expense = $190
Service Revenue:
Cash for meals = $2,400
Credit 2,000
Total $4,400
Salary Expense = !,700
Depreciation expense = $340
Kitchen Equipment = $2,500
Income Statement for the month of May:
Service Revenue $4,400
Expenses:
Rent $500
Utilities expense 190
Salary expense 1,700
Depreciation expense 340
Total expenses $2,730
Net Income $1,670
Answer:
The correct answer is b) Actual cash value.
Explanation:
Insurance industry’s ACV is define as "the cost to replace with new property of like kind and quality, less depreciation. Courts have varied in their rulings as to whether or not depreciation includes obsolescence (loss of usefulness as a result of outmoded design, construction, etc.)."
Answer:
d. there is a shortage and the interest rate is below the equilibrium level.
Explanation:
If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied, there is less money available for loans than the required, which characterizes a shortage. Higher interest rates decrease the demand while lower rates increase demand; if demand is higher than supply, the interest rate is lower than the equilibrium rate.
Therefore, there is a shortage and the interest rate is below the equilibrium level.
