Answer: b. pays cash before the expense has been incurred.checked
d. receives cash before the revenue has been generated
Explanation:
Here is the complete question:
Deferral adjustments are needed when the business:
a. pays cash after the expense has been incurred.unchecked
b. pays cash before the expense has been incurred.checked
c. receives cash after the revenue has been generated.unchecked
d. receives cash before the revenue has been generated.
Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.
Deferral adjustment is when the revenue or the expense has been deferred or postponed and will therefore be reported on the income statement at a later period.
Previously deferred amounts will show on the balance sheet when a company pays cash before having to incur the expense or in a case whereby the company gets and collects cash before earning the revenue.
When revenues are made or when expenses are incurred, the previously deferred amounts will have to be adjusted and then, the amounts will be transferred to income statement through the use of the deferral adjustment.
Answer:
Option B
Explanation:
The un-amortized debt discount can be defined as the difference between both the interest of a bond — the value of the bond at redemption — and the profits from the issuing company's sale of the bond, less than the amount currently amortised on the statement of profit and loss.
The authorizing agency may either agree to pay the full amount of the rebate or view the discount as a profit to be amortized. Some amount which has yet to be spent is alluded to as the reduction for un-amortized bonds.
Where is the link? I do not see the link in the comments
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
Answer:
Entrepeneur
Explanation:
The entrepeneur is the person that is willing to take the financial risk linked to open up a business with the desire of obtain a profit.
