Answer:
Correct answer is D. Credit to Salaries Payable for $8,000
Explanation:
Based on the basic underlying guideliness in accounting, specifically matching principle. All income and expenses should be reported during the period it incurred. Thus, all expenses incurred during the period even though it wasn't paid yet shoud be recorded to the book and that's the moment that the year-end adjusting entry is necessary.
On the above given problem, the salaries paid of $24,000 is presumed to have been recorded in the book already. Because it incurred and paid within the calendar period. In addition, the salaries accrued by the year end needs year-end adjustment<em> to recognize the salaries expense applicable for the period</em>. Journal entry of it is to debit salaries expense and credit salaries payable in the amount of $8,000.
His firm is using a sales orientation
Sales orientation refers to a business technique that rely on it's selling and persuasion technique as their main source of income.
Company that use sales orientation usually sold a type of product that is high in price and not commonly bought by the costumers in large quantity.
Answer:
D. has its profits taxed as personal income.
Explanation:
Characteristics of a sole proprietorship :
1. It Is Owned by one person
2. The onwer has an unlimited liability.
3. It doesn't usually have an unlimited life. It usually ends with the death of the owner.
4. Profits are taxed as personal income.
5. It is very easy to form. It requires little legal cost.
Thank you for the points man ;)
Answer:
The correct answer is option a.
Explanation:
In 2007-2009 financial crisis occurred globally which originated in the US. It was triggered in the US because of the collapse of the housing bubble which caused the price of houses to decline.
The housing bubble was backed by mortgages securities. The percentage of lower quality or subprime mortgages increase around 2004-06.
This reduction in the asset value for mortgage securities caused the banks to reduce their lending as the debts on consumers and businesses were increasing.
This caused the credit crunch in the year 2008.
