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borishaifa [10]
4 years ago
5

Aster Inc. purchased inventory worth $6,500. The company pays $3,000 immediately and commits to paying the balance within fiftee

n days. Which amount will it record for the payment under the accrual-basis accounting method?
A. $6,500
B. $3,000
C. $3,500
D. $9,500
Business
1 answer:
MatroZZZ [7]4 years ago
4 0

Answer:

$3500

Explanation:

The amount that will be recorded under the accrual-basis accounting will be $3500. accrual - basis accounting is a type of accounting method that is used to record both expenses incurred and income earned by a company.

The accrual-basis accounting tends to match revenue earned and debts incurred by a company hence its advantage is that a company will easily know how profitable they are. in Accrual- basis accounting foreseen/estimated debts like the remaining balance from the $6500 debt which is $3500 is recorded under the accrual-basis account.

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Martinez Corporation engaged in the following cash transactions during 2012. Sale of Land and Building…………………. $191,000 Purchase
anastassius [24]

Answer:

$40,000

Explanation:

Cash flow from financing activities;          Amount in $

Issuance of common stock                       247,000

Retirement of bonds                                (100,000)  

Payment of interest on debt                   (12,000)

Cash dividend paid                                 (95,000)

Net cash flows                                          40,000    

Dividends received are shown in operating cash flows where as capital assets are shown in investing activities.

3 0
3 years ago
Tomo, Inc. has prepared its third quarter budget and provided the following data:: Jul Aug SepCash collections $50,000 $39,600 $
dexar [7]

Answer:

The firm will needto borrow 6,500 to achieve their minimum cahs balance and pay  their budgeted expenditures

Explanation:

                       July

beginning          $     4,500

receipts                  $   50,000

disbursement+  $  (56,000)*

subtotal                  $     (1,500)

minimun                         $5,000

Financing needs: 5000 - (-1500)  = 6,500

payment/loan  $6,500

*sum of cash payment for purchase of materials, operating expenses and capital expenditures

3 0
3 years ago
Suppose a city that operates local electric and natural gas companies wants to raise revenues by increasing its rates for electr
leva [86]

Answer: Inelastic

Explanation:

Price elasticity could be defined as when the desire for a product changes as it's price changes. When people's desires changes or they are no longer interested as the price for the commodity goes up. Inelastic demand is defined as when the buyers demand does not change or is not influenced as the price of the commodity goes up, rather the demand decreases than increasing. The price rise will increase city revenues if the elasticity of demand for electricity and natural gas is elastic.

7 0
4 years ago
Before a three-for-one stock split, the shares outstanding were 5,000 shares at $12 par.
Artemon [7]

After the three is to one split, for every one old share, there will be three new shares.

So number of new shares = 5000*3 = 15,000 shares

Since the number of shares increased three fold, the price per share will decrease by three fold.

So the price per share after split = 12/3 =$4

So, after the split, there will be 15,000 shares at $4 per share

6 0
3 years ago
Fran buys 1,000 shares of stock issued by Miller Brewing. In turn, Miller uses the funds to buy new machinery for one of its bre
zhenek [66]

Answer: d. Fran and Miller are both investing.

Explanation: An investment is the action of using a quantity of resources in a project or business to make a profit.

Both Fran and Miller are investing, because Fran wants to take advantage of his savings by buying the shares to make them grow and Miller wants to invest in his business, to be able to increase production or get a better result than he currently maintains.

5 0
3 years ago
Read 2 more answers
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