Answer:
C Liabilities are understated, and net income is overstated.
Explanation:
To accrue for interest expense, the required entries are;
Debit Interest expense (p/l)
Credit Accrued Interest (B/s)
Being entries to recognize accrued interest expense.
If this is not posted, liabilities and expenses for the period would be understated. As such, net income would be overstated.
Hence the right answer is C Liabilities are understated, and net income is overstated.
Answer:
sharecropping
Explanation:
Sharecropping is a system of tenancy agriculture . In it a landowner gives a portion of his land to a labour for the purpose of raising crop . In return , he gets a share of crop raised by him for free.
After the civil war , former slaves were in search of jobs . Due to depression and absence of credit system ,they went into this deal of sharecropping with whites . They also borrowed heavily for getting seeds and fertilizer. Landlords charged high interest rate for that which led them to debt-trap. Landowner also put condition like selling the yield on their condition at pre-specified cheap price.
Answer:
Bilateral Contract
Explanation:
A bilateral contract is an agreement between two parties in which each side agrees to fulfill his or her side of the bargain.
The bilateral contract is the most common kind of binding agreement. Each party is both an obligor (a person who is bound to another) to its own promise, and an obligee (a person to whom another is obligated or bound) on the other party's promise. A contract is signed so that the agreement is clear and legally enforceable.
In this case Windsor promises to pay $375 and Gary promises to deliver 20 pounds of cheese.
Answer:
$90
Explanation:
Hollister has an offer of 10% savings for every purchase.
Jason buys clothes for $100. His savings will be 10% of $100
=10/100 x100
=0.1 x 100
=$10
Jason will pay
=$100 - $10
=$90
Jason will pay $90
Answer:
False
Explanation:
As a company's sales level increases, its current assets will increase, e.g. cash, inventories, accounts receivables increase. generally, also the fixed assets increase, specially if the firm was previous producing at full capacity even before total sales increased. But as sales increase, not only do the company's assets increase, its current liabilities generally increase also, and its profits should increase. In this case, 60% of the company's profits are reinvested in the company, and the liabilities represent more than half of the total assets. Therefore, it is possible that the company needs external financing, but it is also possible that it doesn't. You cannot assume that the company will necessarily need external financing, because retained earnings and the increase in current liabilities might be enough to finance the company's growth in sales.
