When the value of a country's exports exceed the value of its imports, the country is experiencing:

Accounting and financial reporting for state and local governments use, in different places, either the economic resources measu

Agata [3.3K]

The differences in measurement focus and basis of accounting related:

<h3>What is Accrual Accounting?</h3>

Accrual accounting is the process of recording the transactions whenever the expenses or revenues are incurred. This helps the employees not to miss the transactions that occur daily. The revenue recognition will be appropriate under this method.

(A) Differences in conceptual differences :

The economic resources measurement focus measures all economic resources, including capital assets and long-term debt.

The current financial resources measurement focus measures financial resources and does not recognize long-term assets and liabilities. The accrual basis of accounting recognizes revenues When earned and expenses when incurred. (when goods or services are used).

The modified accrual basis of Accounting recognizes revenues when measurable and available to finance Expenditures of the current period. The modified accrual basis of accounting recognizes expenditures generally when the fund liability is incurred except for payments of interest on long-term debt Which are recognized when due.

(B) Differences in Revenue Recognition:

Under accrual accounting revenues based on exchange transactions are recognized when earned. Revenues based on non-exchange transactions are recognized according the provisions of GASB Statement 33.

Under modified accrual accounting, revenue recognition is modified to require that the amount be measurable (determinable) and available to finance expenditures of the current period.

(C) Differences in Expense/Expenditure Recognition:

Under accrual accounting, expenses are recognized when incurred. Expenses are often matched with revenues those expenses generate, in the case of exchange transactions. Accruals are required for interest and other expenses, regardless of when cash is to be transferred.

Under modified accrual accounting, expenditures (not expenses) are recorded generally when goods or services are received.

(D) Differences in recognition of fixed assets:

Under the economic resources measurement focus and accrual accounting, fixed assets are capitalized and depreciated .

Under the current financial resources measurement focus and modified accrual accounting, fixed assets are not capitalized or depreciated; rather fixed assets are charged to expenditures when received.

(E) Differences in the recording of long-term debt:

Under the economic resources measurement focus and accrual accounting, long-term debt is recorded as a liability; repayments are recorded as a reduction of that liability.

Under the current financial resources measurement focus and modified accrual accounting, long-term debt is not recorded as a liability.

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7 0

1 year ago

A manufacturer reports the information below for three recent years.

evablogger [386]

Answer:

Fixed Overhead in ending inventory = (2,200 * $1.20) = $2,640

Fixed Overhead in ending inventory = (1,700 * $1.20) = $2,040

Fixed overhead in beginning inventory = (2,200 * $1.20) = $2,640

Fixed Overhead in ending inventory = (1,800 * $1.20) = $2,160

Fixed overhead in beginning inventory = (1,700 * $1.20) = $2,040

Absorption costing income

Particulars Year 1 Year 2 Year 3

Variable costing income $140,000 $146,400 $143,950

Fixed Overhead in ending inventory $2,640 $2,040 $2,160

Fixed overhead in beginning inventory $0 ($2,640) ($2,040)

Absorption costing income $142,640 $145,800 $144,070

6 0

3 years ago

Gabriella, a single taxpayer, has wage income of $160,000. In addition, she has $7,000 in long-term capital losses, $1,000 in lo

Hatshy [7]

Answer:

c. $156,000

Explanation:

Adjusted gross income = Wage income + Long-term capital gains + Short-term capital gains - Long-term capital losses - Short-term losses

Adjusted gross income = $160,000 + $1,000 + $3,000 - $7,000 - $1,000

Adjusted gross income = $156,000

Thus, Gabriella's AGI for 2017 is $156,000

6 0

3 years ago

"The "circuit breaker" on the domestic equities markets to reduce price volatility is INITIATED when the Standard and Poor's 500

kirill115 [55]

Answer:

7%

Explanation:

In Microeconomics, circuit breaker can be defined as a financial regulatory measure or instrument used by stock exchange organizations to temporarily halt trading on an exchange and to prevent stock market crash. The circuit breaker is also referred to as trading curb and it is used to curb panic selling in the stock markets, which eventually prevents collosal losses and speculative profits in a very short period of time.

The "circuit breaker" on the domestic equities markets to reduce price volatility is INITIATED when the Standard and Poor's 500 Index falls by 7%. The circuit breaker rule states that, if the Standard and Poor's 500 Index falls by 7% from the closing price of the previous day: the listed equity on the domestic equities markets will be shut down for 15 minutes, so as to mitigate price volatility. The 7% is the level one (1) of the circuit breaker levels for the the Standard and Poor's 500 Index (S&P 500 Index) on the stock markets.

8 0

2 years ago

Explain one advantage of using retained profit as a source of finance.

Neporo4naja [7]

Retained profits have several major advantages: They are cheap (though not free) – effectively the "cost of capital" of retained profits is the opportunity cost for shareholders of leaving profits in the business (i.e. the return they could have obtained elsewhere)

7 0

3 years ago