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3 years ago

Accrual basis accounting records ______. (Check all that apply.)

Business

1 answer:

zhuklara [117]3 years ago

4 0

Answer:

The following applies:

1. expenses when incurred to generate revenue.

2. expenses even when cash has not yet been paid

3. revenue even when cash has not been collected

4. revenue when earned

Explanation:

Accrual basis is an accounting concept that recognizes revenue when earned when if the collection of cash will be done later.

It also recognizes expenses when incurred even though the cash has not been spent.

Accrual basis matches a transaction with when it happened.

It is different from cash basis which recognizes revenues only when the cash is received and expenses only when the cash has been spent.

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Answer:

1 and a half months worth of depreciation

Explanation:

The advantage of starting to depreciate an asset purchased on December is that next year you will be able to depreciate it for a full year under MACRS. Generally, when you purchase an asset, you have to use the half year convention and your depreciation expense for the first year will be low compared to the second year. But if you start depreciating your asset in the current year, even if you purchased it on December and the depreciation expense is not that significant, the next year you will be able to depreciate it at the second year rate.

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4 years ago

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2 years ago

Which of the following is NOT a useful strategy when making an informed purchase?

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The answer is 4, purchase a product based on a social media influencer.

this would not be an informed purchase

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3 years ago

Malcolm is a professional writer. He has already published many best-sellers. One of his friends expressed interest in knowing m

maxonik [38]

Answer:

Malcolm is a professional writer. He has already published many best-sellers. One of his friends expressed interest in knowing more about his writing process, so Malcolm showed his friend a few of his first drafts. The friend observed that the drafts were nothing like the final book, and the writing seemed amateurish compared to Malcolm's published work. When asked about it, Malcolm said that it was the normal way of things. In this scenario, the following is the reason of this:

A) Malcolm would have revised his work many times before he was satisfied with it.

Explanation:

The option A is best reason because generally a writer doesn't break his or her flow while writing and that is what Malcolm would have done. After, he would have revised his work many times until he was satisfied.
The option B is not correct as it is not possible to change the book of a writer entirely by the publishing company.
The option C is also incorrect as the drafts were not long and cohesive because his friend found the draft amateurish but not perfect.
The option D is incorrect as it is not true that writers only create first draft and other people produce all other subsequent drafts.

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3 years ago

Assuming a 360 day year, the interest charged by the bank at the rate of 6%, on a 90 day discounted note payable of 100,000 is:_

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Answer:B. $1,500

Explanation:

Interest revenue is money earned when an entity or individual loans money to another. it can also be regarded as money accrued from investments. IT is calculated as

Interest Revenue = Principal x Rate x Time

= $100,000 x 6% x 90/360

= $100,000 x 0.06 x 0.25

= $1,500

Therefore the interest charge by the bank is $1500.

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3 years ago