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2 years ago

Review and complete the following statement regarding the Income Summary account.

Business

1 answer:

torisob [31]2 years ago

8 0

Answer:

Revenues are Credited, Expenses are Debited and the difference of Revenue and Expenses is credited in the Retained Earnings.

Explanation:

The revenue and retained earnings account are credit in nature and expenses are debit in nature.

This can be Explained from the following equation:

Closing Equity = Opening Equity + (Revenue - Expenses)

Closing Equity - Opening Equity = (Revenue - Expenses)

Earnings Retained by the Company = (Revenue - Expenses)

So the difference of the revenues and expenses goes to retained earnings. If the answer of the difference is positive then the retained earnings are credited otherwise it is credited. So as I said that revenues are credit in nature so if their is profit (credit is in access of debit or in other words revenues are in excess of expenses) then the retained earnings will be credited and if their is a loss then the retained earnings account will be debited.

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A simultaneous increase in both unemployment and inflation is most likely to be the result of a(n): Group of answer choices decr

sesenic [268]

Answer: Decrease in the short run aggregate supply. increase in long run aggregate supply

Explanation:

assuming the wage stays constant in the short run (price of labour), an increase inflation/general prices will lead to a decrease in the Supply of labour because the current wage is no longer enough to cover the same number of goods people used to buy which will then increase Unemployment. The Labor market will experience a situation where inflation and unemployment are increasing at the same time

The Supply of Labour will increase in the Long run because the wage price will have sufficient time to adjust and increase to a new equilibrium level. .an increase in wage price will increase the quantity of supplied.

8 0

2 years ago

X Company and Y Company, operating on opposite sides of the country, manufacture equipment that is virtually identical except fo

Makovka662 [10]

Answer:

$14,000

Explanation:

Company X Company Y

cost per equipment $75,000 cost per equipment $65,000

sales price $105,000 sales price $91,000

Both companies sold one unit and they exchanged clients in order to reduce shipping cost:

company X income = $105,000 (selling price) - $75,000 (COGS) + $14,000 (money received from company Y) = $44,000

company Y's income = $91,000 (selling price) - $65,000 (COGS) - $14,000 (money given to company X) = $12,000

This exchange resulted in company X's income increasing by $14,000, while company Y's income decreased by $14,000

6 0

3 years ago

On July 8, Jones Inc. issued an $75,700, 8%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends o

Marizza181 [45]

Answer:=Jones recognizes $386.9 as interest

Explanation:

Fiscal year ending July 31st

there are 23 days between when the cash as issued ie July 8 and the end of the fiscal year on July 31st

Given amount or Principal amount = $75,700

Rate= 8%

Interest = Principal x Rate x Time

$75,700 x 8% x 23/360=$75,700 x 0.08 x 23/360

=$386.9

Jones recognizes $386.9 as interest in the current fiscal year.

3 0

3 years ago

When your father was born 48 years ago, his grandparents deposited $250 in an account for him. Today, that account is worth $36,

ki77a [65]

Answer:

10.94%

Explanation:

Your father was born 48 years ago

His grandfather deposited $250 in an account for him

Today the money is worth $36,500

The annual rate of his return can be calculated as follows

= 36500/250 ×1/48= (1+r/100)

= 146^0.020833= (1+r/100)

= 1.1094-1

= 0.10940×100

= 10.94%

6 0

3 years ago

A key determinant of the price elasticity of supply is the

alina1380 [7]

Answer:

The ability of sellers to change the amount of the good they produce.

Explanation:

Price elasticity of supply: It is an economic measure to check the responsiveness of quantity supplied to the change of price. As per the law of supply, the supply of quantity increases with the increase in the price of goods and services and vice versa. The numerical value of elasticity indicates how is the response of quantity supplied to the price of the product. As zero indicates no response to the change in price and 1 indicate a higher response to the price of the product.

The key determinant of the price elasticity of supply is how well the seller is able to change the quantity supplied as per the price in the market.

8 0

3 years ago