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gregori [183]
3 years ago
15

Hahn Co. prepared financial statements on the cash basis of accounting. The cash basis was modified so that an accrual of income

taxes was reported. Are these financial statements in accordance with the modified cash basis of accounting
A. Yes.
B. No, because the modifications are illogical.
C. No, because there is no substantial support for recording income taxes.
D. No, because the modifications result in financial statements equivalent to those prepared under the accrual basis of accounting.
Business
1 answer:
jeyben [28]3 years ago
8 0

Answer: the answer is A. Yes.

Explanation:

Under a strict cash basis of accounting, revenues and expenses are recorded only when cash is received or paid. Under a modified cash basis of accounting, certain accruals and/or deferrals are recorded for financial-statement purposes.  

The most common modifications are the capitalization and amortization of long-lived assets and the accrual for income taxes (recognition of income tax expense and related liability).

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Suppose the economy is in a recession. The economy needs to expand by at least $350 billion, and the marginal propensity to cons
MissTica

Answer:

$140

Explanation:

Calculation for What is the least amount the government can spend to overcome the $350 billion gap

First step is to find the Multiplier using this formula

Multiplier=1(1-Marginal propensity)

Let plug in the formula

Multiplier=1/(1-0.6)

Multiplier=1/0.4

Multiplier=2.5

Now let calculate the least amount the government can spend using this formula

Least amount=Gap/Multiplier

Let plug in the formula

Least amount=$350 billion /2.5

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3 years ago
What are the main purposes of a budget?
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3 years ago
Read 2 more answers
The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call c
erastovalidia [21]

Answer:

Is out of the money

Explanation:

A strike price is a particular price which if activated, derivative contracts can be sold or bought. Derivatives are considered as products in finance where underlying assets are major determinants of their value.

The stock price is considered as the current price that a share of stocks is sold and bought on the market.

Because the strike price is $65 and the stock price (market price) is $60, Disney is out of money and cannot be exercised profitably.

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