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Romashka [77]
3 years ago
5

Which of the following is an example of an accrual? A : Record Revenues that were received in cash in an earlier period. B : Rec

ord Revenues that will be received in cash in a subsequent period. C : Record Wage Expense that is incurred and paid in the same period. D : Record Rent Expense that was prepaid.
Business
1 answer:
shutvik [7]3 years ago
8 0

Answer: B. Record revenue that will be received in cash in a subsequent period.

Explanation: Accrual Accounting is a method that records transactions when they have inccured. Instead of when the cash is exchanged.

A. Incorrect. Impossible to record in earlier periods. As the past financial statements from previous years have already been closed off.

B. Correct. Accrued accounting entails recording the transaction when it has occurred. So the cash will be recorded as received. However the cash will only be transferred to the revenue account when the obligation has been met. Therefore it will only be transferred to revenue in the period that it applies to.

C. Incorrect. This is already general expense and general accounting rules apply. I.e. The expense is incurred in the same year and paid out in the same year. This is how most income and expenses are treated, except for prepaid and accrual income and expenses.

D. Incorrect. This is an example of a prepaid expense. Prepaid expenses are expenses that have already been paid even though they haven't been inccured yet. This is an asset, and is thus recorded on the debit side.

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The economic indicator that reflects activity of u. s. entities without regard to where the activity takes place is?
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The economic indicator that reflects the activity of the U.S. entitled without regard to where the activity takes place is GNP.

Gross national product (GNP) is an estimate of the total cost of all the final products and services grown to become out in a given duration via the way of production owned by a country's citizens.

Indicators of financial pastime financial signs consist of measures of macroeconomic performance (gross domestic product [GDP], intake, funding, and international alternate) and stability (central authorities' budgets, expenses, the cash supply, and the balance of payments).

Gross Domestic Product is essential as it offers records about the scale of the economy and the way an economy is performing. The increased price of actual GDP is often used as an indicator of the overall health of the economic system. In wide terms, growth in real GDP is interpreted as a sign that the economy is doing properly.

Learn more about Gross Domestic Product here brainly.com/question/1383956

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4 0
11 months ago
a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than projected, then it is usually becau
rewona [7]
<span>A firm might lose its sales revenue and market share if it is unable to respond rivals market strategy to acquire market share. In the given case most probably the firm lost its market share to its rival due to their exerted efforts in one or more. </span>
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2 years ago
Select the true statement about default risk. It is the risk that the bond's price will fall below its par value. Bondholders ha
Novosadov [1.4K]

Answer:

Bondholders have a degree of legal protection against default risk, but it is not comprehensive.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.

Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.

5 0
3 years ago
Sun Inc. assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a
meriva

Answer:

The answer is: Assigning accounts receivables as collateral for a bank is not a asset transfer.

Explanation:

Even as the bank offers Sun Inc. with a factoring limit, the accounts receivables are still in the firm's accounting book. The firm has the obligations to go after their debtors for collections. The account receivables are transferred to creditors when a company becomes defaulted or bankrupted.

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