Answer:
The statement is: True.
Explanation:
The matching principle of the Generally Accepted Accounting Principles (<em>GAAP</em>) states that the expenses a company incurs during a period must match with the revenues those expenses were incurred during the same period. This principle is usually implemented with the accrual accounting method leaving in clear that expenses are incurred to generate profit.
Answer:
No
Explanation: The key word is it was earned as result of the connection to the firm so it is split between the partners
Answer:
a) Credit Balance R$1,000.00
Explanation:
The Duplicates Payable represents a Liability in Andorinha Ltd records.
When Andorinha Ltda paid a cash duplicate in the amount of R$500.000 the entries recorded will be :
Trade Payable-Duplicates R$500.000 (debit)
Cash R$500.000 (credit)
<em>Effect on Balance of Duplicates Payable</em>
Decrease in Duplicates Payable by $500,000
Remaining Balance is $100,000 (credit)
Answer:
Change in M1 $400
Changd in M2 $0
Explanation:
The money which is been held by individuals in savings accounts is part of the M2 money supply, but its not part ofthe M1 money supply.
Hence when Jane withdraws $400 cash from her savings account,the M1 money supply will increases by $400. However, the M2 money supply does not tend to change reason been that the M1 money supply is included as part of the M2 money
Change in M1 $400
Changd in M2 $0
Answer: C. $40 million.
Explanation:
By granting them 15 million shares subject to forfeiture if employment is terminated within three years, the company is compensating them.
The total amount that they will be compensated with has to be apportioned over the 3 years as an expense that will reduce earnings per year.
Total compensation = No. of shares * fair value of shares
= 15,000,000 * 8
= $120,000,000
Apportioned over 3 years;
= 120,000,000/3
= $40,000,000
