All categories

3 years ago

Which of the following is a liability account?A.Prepaid ExpenseB.Salaries ExpenseC.Service RevenueD.Accounts Payable

Business

2 answers:

Oksana_A [137]3 years ago

8 0

To add to that a salary can only be a liability if it's unpaid.

tangare [24]3 years ago

4 0

Answer:

D. Accounts Payable

Explanation:

The account payable is a current liability account. It is shown on the liabilities side of the balance sheet. It is considered to be a short term obligation which is to be paid within one year.

While the prepaid expense and the salaries expense is an expense account that is reflected on the debit side of the income statement

And, the service revenue records the revenue earned during the period. It is shown on the credit side of the income statement

You might be interested in

Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common

Liono4ka [1.6K]

Answer:

See Explanation Below

Explanation:

Formula:

Shares is calculated by multiplying common stock by duration (in years)

Given

Number of common shares issued and outstanding at December 31, 2015 = 2,000,000

Shares issued as a result of a 10% stock dividend on September 30, 2016 = 200,000

Calculating the weighted average number of common stocks:

Jan 1 2016 to Sept 30,2016:

First, note that there are 9 months between these two dates

So, the number of shares is calculated as: Common Shares * Duration (in years)

Number of Shares = 2,000,000 * 9/12

Number of Shares = 1,500,000

Jan 1 2016 to Sept 30,2016 - Adjusted

Given that there is a share issued as a result of 10% Stock dividend

Number of shares is calculated as 1,500,000 + the additional 10%

Number of Shares = 1,5000,000 + 10% * 1,500,000

Number of Shares = 1,500,000 + 150,000

Number of Shares = 1,650,000

Oct 1, 2016 to Dec 31, 2016

There are 3 months between these two dates

Common Shares between these dates = 2,000,000 + 200,000 --; This is gotten from outstanding shares of December 31, 2016 (2,000,000) and shares issued as a result of 10% Stock dividend (200,000)

Duration = 3/12 --- (by converting month to years)

So, Number of Shares = Common Shares * Duration

Number of Shares = 2,200,000 * 3/12

Number of Shares = 550,000

Total = 1,650,000 + 550,000

Total = 2,200,000 Shares

Jan 1, 2017 to Mar 31, 2017

We'll still make use of the formula used in (1) above

Common Stocks * Duration (in years)

Between these dates, there are three months and common stock =2,200,000 --- as calculated in (1) above

So, Number of shares = 2,200,000*3/12 = 550,000

March 1,2017 to Dec31,2017

Given

Number of common shares issued and outstanding at December 31, 2017 = 4,200,000

Here, Common stocks = 4,200,000

Duration = 9/12

Number of Shares = 4,200,000*9/12 = 3,150,000

Total Number of Shares = 550,000 + 3*150,000 = 3,700,000

Given

Weighted number of shares for 2017 = 3,700,000 --- calculated in (3) above

Weighted average number of shares = 2 * Weighted number of shares for 2017

Weighted average number of shares = 2 * 3,700,000

Weighted average number of shares = 7,400,000

Jan 1, 2017 to Mar 31,2017.

Duration between these dates = 3/12 years

Number of common shares issued and outstanding at December 31, 2017 = 4,200,000

Number of Shares = 4200,000*3/12 = 1,050,000

April 1, 2017 to Dec 31, 2017

Duration = 9/12 years

Common Stocks = 4,200,000 * 2

Number of Shares = 4200,000*2*9/12 = 6,300,000

Total = 1,050,000 + 6,300,000 = 7,350,000

8 0

4 years ago

Gibson Electronics identifies licensees in various countries who produce and sell the company's products in their countries in r

sladkih [1.3K]

Answer:

E) sharing valuable technological know-how with a potential competitor.

Explanation:

From the question we are informed about Gibson Electronics who identifies licensees in various countries who produce and sell the company's products in their countries in return for a royalty fee on every unit sold. Gibson Electronics’ approach is risky because of the problems associated with sharing valuable technological know-how with a potential competitor. Technological know-how in organization can be regarded as sets of knowledge as well as skills which is developed by that participants and is used to guide the acquisition as well as creation, and operation of computer-based systems which gives enablements or brings about facilitation of the performance of business processes, sharing this with competitors in business could be dangerous potential competitors can embrace it to move their business forward which will affect the owner of the Technological know how Businesses in the market.

7 0

3 years ago

A small open economy with a fixed exchange rate e2 is initially at equilibrium A with LM*1 and equilibrium output Y1. If there i

anastassius [24]

If there is an increase in government spending, the new equilibrium will be at <u>B</u> holding everything else constant.

<h3>What is government spending?</h3>

Government spending can be the defined as the money spent on goods and service or money spent by government to provide services to the public.

An increase in government spending will tend to lead to increase the demand of goods and service which inturn means that consumption expenditure will as well increase.

Inconclusion the new equilibrium will be at <u>B</u> holding everything else constant.

Learn more about Government spending here:brainly.com/question/27232573

6 0

2 years ago

URGENT!!!

Gwar [14]

so,nominally,................... (copied by :- @-Venkatesh Rao cheap tricks-)

3 0

3 years ago

ecord adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are made

k0ka [10]

Answer: Please Refer to Explanation

Explanation:

Please see complete question attached to this answer.

As the company has not paid the salary but they recognize it is an expense, it should be credited to Salaries payable from the salary expense account.

DR Salary Expense $ 18,500

CR Salary Payable $18,500

( To record Salary Expense incurred but not paid)

As the company has not paid the interest but they recognize it is an expense, it should be credited to Interest Payable from the interest expense account until it is paid.

DR Interest Expense $400

CR Interest Payable $400

( To record interest expense on loan not paid )

As the company has not paid the mortgage interest but they recognize it is an expense, it should be credited to mortgage payable from the mortgage account expense account

DR Mortgage Interest Expense $1,025

CR Mortgage Interest Payable $1,025

( To recording interest expense on mortgage not paid for the year).

3 0

3 years ago

Which of the following is a liability​ account?A.Prepaid ExpenseB.Salaries ExpenseC.Service RevenueD.Accounts Payable

Which of the following is a liability account?A.Prepaid ExpenseB.Salaries ExpenseC.Service RevenueD.Accounts Payable