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3 years ago

The matching principle

1 answer:

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Answer: The matching principle <u>"d. states that the revenues and related expenses should be reported in the same period".</u>

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Explanation: The application of this principle is a consequence of double entry; In the specific case of the Correspondence Principle we refer to the relationship that exists between an income and expense at the time of registering a transaction. It can be summarized in the following statement:

For every income there is an expense and for every expense there is an income.

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1. Determine whether a $100,000, 3-month T-Bill selling at $97,645 or a 10%, semi-annual coupon bond selling at par has the grea

stiv31 [10]

The 10% semi-annual coupon bond selling at par has the greater effective annual return than the $100,000, 3-month T-Bill selling at $97,645.

<h3>Data and Calculations:</h3>

T-Bill:

Face value of T-Bill = $100,000

Present value of the T-Bill = $97,645

Effective yield rate = 9.65% ($2,355/$97,645 x 100 x 12/3)

Bond:

Face value of bond =$100,000

Interest = 10% semi-annual

Present value of the bond = $104,761.90

Effective yield rate = 9.80%

Thus, the 10% semi-annual coupon bond selling at par has the greater effective annual return than the $100,000, 3-month T-Bill selling at $97,645.

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3 years ago

2. Which of the following statements about money are correct?

Wittaler [7]

Answer:

The statements that are correct about money are

(1) With the use of money, double coincidence of wants is not necessary in an exchange.

(2) With the use of money, the cost of looking for trading partners can be lowered.

Option: (A)

Explanation:

The concept of using money having a predefined value emerged from the idea of how convenient it would be to have a common commodity of exchange that could be used in exchange for anything and everything offered for sale. After the barter system eventually came to an end, the process of determining monetary values of commodities of day to day use began and inveterated gradually. As the prevalence of the use of common money grew, the necessity of double coincidence of wants ended soon. People who wanted to exchange wheat for maize no longer had to wait to come across someone who wanted to exchange maize for wheat.

With the introduction of money and an increase in its use, the time and efforts required to find a partner to trade with decreased dramatically. This made transactions more convenient and affordable and more people began to involve themselves in trading activities. The use of money not only dispensed ease of doing business but also helped in establishing faith and reliability among trading partners.

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3 years ago

Read 2 more answers

According to the Project GLOBE study, a leader who is status-conscious and procedure-oriented displays which leadership style?

Rina8888 [55]

The leadership style by someone who is status-conscious and procedure-oriented is self-protective.

<h3>What is leadership style?</h3>

A leadership style means a leader's characteristic behaviors when the person is directing, motivating, guiding, and managing people.

According to the Project GLOBE study, a leader who is status-conscious and procedure-oriented displays is displaying a leadership style known as self-protective.

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2 years ago

_____ ratios reflect the speed with which resources are converted to cash or sales.

Mekhanik [1.2K]

Activity ratios reflect the speed with which resources are converted to cash or sales.

Option E is correct answer .

Activity ratios :

Activity ratios measure how well a firm uses its assets. They reflect the speed with which resources are converted to cash or sales. A frequently used activity ratio is inventory turnover. The inventory turnover ratio measures the speed with which inventory moves through the firm and is became sales.

What is a high activity ratio?

A high ratio indicates that a corporation is using its total assets very efficiently or that it does not own many assets, to start with. a coffee ratio indicates that too much capital is tied up in assets and that assets are not being used efficiently in generating revenue.

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2 years ago

It is important for modern firms to build and maintain ______ by conducting ethical and transparent transactions.

r-ruslan [8.4K]

The singular thing which is important for modern firms to build and maintain by conducting ethical and transparent transactions is:

Consumer trust

<h3>What is Consumer Trust?</h3>

This refers to the belief which a customer has in a particular business, usually because of its ethical and transparent practises.

With this in mind, we can see that if modern firms fail to build this consumer trust, then they stand the risk of losing their customer base to their competition.

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3 years ago