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Leona [35]
3 years ago
13

Which statement is true? Multiple Choice Some Income Statement accounts are Permanent and some Income Statement accounts are Tem

porary. All Income Statement accounts are Temporary All Income Statement accounts are Permanent
Business
2 answers:
Cerrena [4.2K]3 years ago
5 0

Answer:

The correct answer is all income statement accounts are temporary

Explanation:

Income statement is that part of financial statement set aside for determining profits or losses made in accounting period.

The main reason for preparing income statement is to arrive at the retained earnings which are later posted to the balance sheet.

All accounts in the income statement are temporary as they do not have balances carried forward at the end of a period unlike balance sheet where assets,liabilities and equity  have opening and closing balances.

It is for the reason that inventory when purchased is first debited to the balance sheet and posted to income statement when the profit is to be determined and also closing inventory is immediately transferred back to the balance sheet.

slavikrds [6]3 years ago
5 0

Answer:All Income Statement accounts are Temporary

Explanation:An income statement account is a type of account where all the money coming into the Organisation is recorded, income statement accounts are closed at the end of the financial or accounting period.

Temporary accounts are accounts that are closed every accounting period,they are not carried over or retained,they are reset as a new accounting period is beginning.

Earned interest,Sales discounts,Sales returns,Utilities,Rent etc.

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On January 1, Year 1, Johnston Company purchased a 40% interest in the common stock of Truly Inc. for $100,000. Johnston has sig
e-lub [12.9K]

Answer:

$112,000

Explanation:

The Equity method shall be used in this question for determining book value of investment made by the Johnston company in Truly Inc because the investment gives the Johnston company the significant influence over the Truly Inc.

Under equity method, the book value of investment made by the Johnston company as at end of year 1 shall be determined as follow:

Amount invested initially                                 $100,000

Add: Net income for the year                          $20,000

(50,000*40%)

Less: dividends received                                 ($8,000)

(20,000*40%)    

Book value of investment at end of year 1      $112,000

5 0
3 years ago
As the operations manager for American Airlines you have decided to invest in 10 new jets for the company's fleet. There are thr
3241004551 [841]

Answer:

0.17

Explanation:

The computation of the expected return on investment is shown below:

= (Expected return of the outcome 1 ×  Probability of the outcome 1) + (Expected return of the outcome 1 ×  Probability of the outcome 1) + (Expected return of the outcome 1 ×  Probability of the outcome 1)

= (0.15× 0.50) + (0.25 × 0.30) + (0.10 × 0.20)  

= 0.075 + 0.075 + 0.02

= 0.17

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3 years ago
Critically explain Robbins definition of economics?​
arlik [135]

Answer:

In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”

Explanation:

4 0
3 years ago
How do you know if you are eligible to open and make contributions to a Roth IRA?
Whitepunk [10]

Answer:

The correct answer is letter "B":You have to earn below a certain amount to make contributions .

Explanation:

A Roth Individual Retirement Account (IRA) is the type of retirement account where contributions grow tax-free and allows individuals to withdraw funds under certain conditions. <em>People are eligible to open a Roth IRA as long as their income is less than $139,000 for singles and $206,000 for married couples- </em>information that applies for the year 2020.

7 0
3 years ago
(a)  Bank of Marienfield started its first day of operations with $150 million in capital. It received a total of $100 million i
Juliette [100K]

Here, we are going to prepare the balance sheet of Bank of Marienfield using the information given in the question..

  • Formula for Total liabilities is <em>Capital + Checkable deposit + Loan from bank</em>

<u>Given Information</u>

Capital = $150 Million

Checkable deposit = $100 Million

Loan from bank= $50 Million

Total liabilities = $150 Million + $100 Million + $50 Million

Total liabilities = $300 Million

<u>Additional given Information</u>

Commercial loan = $150 Million

Investment in shares = $120 Million

Investment in Treasury bonds = $20 Million

Required reserve = Checkable deposit * Required reserve rate

Required reserve = $100 Million * 10%

Required reserve = $10 Million

Excess reserve = Total liabilities - (Commercial loan + Investment in shares + Investment in Treasury bonds + Required reserve)

Excess reserve = $300 Million - ($150 Million + $120 Million + $20 Million + $10 Million)

Excess reserve = $300 Million - $300 Million

Excess reserve = $0 Million

                                  Balance sheet of Bank of Marienfield.

Assets                           Amount        Liability                        Amount

Required reserves       $10 million     Bank capital              $150 million

Excess Reserve            $0                  Checkable deposit  $100 million

Commercial loan          $150 million   Loan from bank        $50 million

Investment in shares    $120 million

Invest. Treasury bond  <u>$20 million </u>                                      <u>                       </u>

Total                              <u>$300 million</u>  Total                          <u>$300 million</u>  

3 0
3 years ago
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