Answer:
b) false
Explanation:
This could be considered a bilateral and executory contract because both parties agreed to perform and exchange consideration in the future (in this case, Saturday). But it cannot be considered an implied contract.
E.g., an implied contract happens when you enter a movie theater and a commercial relationship is established where the movie theater must allow you to see a movie and you must pay your ticket for doing so. The same applies for other public places restaurants, theme parks, etc.
But in this case, Valerie's house is not a place where any person is free to attend. You cannot just go into Valerie's house and start cleaning so that she pays you $50.
Implied contracts might also result from previous performances, e.g. Teresa cleans Valerie's house every Saturday for almost 2 years now. The past performance might result in an implied contract, but this wouldn't be the case here either.
This phenomenon is known as the <u>"income"</u> effect.
The income effect refers to an adjustment in the interest of a decent or administration, instigated by an adjustment in the purchasers' optional wage.
The income effect is the impact on real income when value changes - it tends to be certain and negative. Beneath, as value falls, and expecting ostensible salary is steady, a similar ostensible pay can purchase a greater amount of the great - thus interest for this (and different products) is probably going to rise.
Answer:
The journal entry for the following is shown below:
Explanation:
The journal entry for the salary which is paid on January 3 is as:
January 3
Salaries expense A/c..........................Dr $30,000
Cash A/c..............................................Cr $30,000
As the salary is paid worth $30,000, so the salary expense is decreasing and any decrease in expense is debited. Therefore, the salary expense account is debited. And it paid against the cash and the cash is going out of the business and any decrease in cash will be credited. Therefore, the cash account is credited.
Answer:
a) Calculate the first year’s net earnings under the cash basis of accounting, and accrual basis of accounting.
cash basis accrual basis
total revenue $23,900 $31,600
operating expenses $12,010 $16,100
<u>prepaid insurance $2,690 </u>
net earnings $9,200 $15,500
b) the accrual basis always provides more useful information because transactions are recorded when they actually occur, not when cash flows (collections or payments) are directly associated to them. This is why the IRS only allows cash basis accounting for certain small businesses or sole proprietorships.
Answer: "fixed cost" .
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(such as "monthly rent" in an apartment lease).
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