All categories

3 years ago

What is the difference between accrual and realization concept in accounting

1 answer:

6 0

Accrual:- in layman terms, accrual is an ongoing process. For example if you are in an auto, the fare keeps on accruing as we travel

Realization:- in layman terms realization is the receiving of the money that had accrued. For example, when you pay the auto fare, that is realization

You might be interested in

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individ

sleet_krkn [62]

Answer:a.

It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

Explanation:

A bank will often hold government securities as an asset. If a bank were to sell S500,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in its vault, by how much would the money supply change as a result - It would increase by $500,000 multiplied by the reciprocal of the required reserve ratio.

The money supply is the entire stock of currency and other liquid instruments circulating in a country's economy and is given by the formula:

MONEY SUPPLY = RESERVES X MONEY MULTIPLIER

Therefore the bank reserves increasing in the scenario will increase money supplier by the effect of the money multiplier or the reciprocal of the required reserve ratio.

5 0

3 years ago

Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecas

Wewaii [24]

Answer:

Explanation:

Data provided in the question:

Sales for the last four months :

8, 10, 15, and 9 units

Last four forecast of sales:

9, 11, 8 and 12 units

Now,

The mean absolute deviation (MAD) value of these forecast will be calculated as:

MAD = [ ∑|Sales - Forecast sales| ] ÷ [ Total number of forecast ]

MAD = [ |8 - 9| + |10 - 11| + |15 - 8| + |9 - 12| ] ÷ 4

MAD = [ 1 + 1 + 7 + 3 ] ÷ 4

MAD = 12 ÷ 4

MAD = 3

4 0

3 years ago

Tax cuts _________.A) and increases in government expenditures shift aggregate demand right.B) and increases in government expen

Pie

Answer: A. and increases in government expenditures shift aggregate demand right.

Explanation: Government expenditures or spending affect the aggregate demand, because it is one of the component of aggregate demand. If there is an increase in government spending the aggregate demand will shift to the right.

When there is tax cut or reduction in tax, there will be more disposable income which will increase consumption and savings and in turn shift the aggregate demand to the right.

5 0

3 years ago

What types of unemployment will still exist when the economy is at the natural rate of unemployment?

Goshia [24]

Frictional, Structural, &
Cyclical

5 0

3 years ago

Whispering Winds Manufacturing has an annual capacity of 81,000 units per year. Currently, the company is making and selling 78,

svetoff [14.1K]

Answer:

Net loss from accepting the order $(56,200 )

Explanation:

Note that Whispering Winds Manufacturing currently has excess capacity

Excess capacity = 81,000 - 78,200 = 2800 units

The relevant cash flows associated with this special order are as follows:

The increase in contribution from meeting part of the offer from the excess capacity
Opportunity cost associated with meeting the part of the special order from existing sales.

Note that the special order would be met as follows

2800 from the excess capacity

2600 from existing sales

5400

Total contribution from special order:

(70-65) × 5400 27000

Contribution lost from selling 2,600

at a reduced price:

(102-70) × 2,600 (83,200)

Net loss from accepting the order (56,200 )

7 0

3 years ago

What is the difference between accrual and realization concept in accounting​

What is the difference between accrual and realization concept in accounting