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Alekssandra [29.7K]
3 years ago
9

Which of the following is true regarding the trial balance? Select all that apply. The trial balance includes all of the account

s needed to create the balance sheet and the income statement.
Business
1 answer:
Luda [366]3 years ago
4 0

Complete Question:

Which of the following is true regarding the trial balance? Select all that apply.

a) The trial balance includes all of the accounts needed to create the balance sheet and the income statement.

b) The trial balance is much less detailed than the balance sheet and income statement.

c) The accounting principle of materiality says that the information on the trial balance can be combined and simplified into more general reporting items.

d) The accounting principle of money measurement says that the information on the trial balance can be combined and simplified into more general reporting items.

e) The trial balance shows only nominal accounts.

Answer:

a) The trial balance includes all of the accounts needed to create the balance sheet and the income statement.

Explanation:

Company XYZ's trial balance summarizes all the general ledger account balances with the assets and expenses on the debit side and the liabilities, equity, and income on the credit side.  It is extracted from the general ledger for all accounts that do not have equal debit and credit sides.  It is one of the ways to ensure that proper double entry system of bookkeeping has been followed.  That the two sides are in balance does not mean that the trial balance or the general ledger from which it is prepared is error-free.  It simply means that the two sides agree in total.  XYZ can prepare the trial balance at any time, not necessarily at the end of the period.

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All-Star Automotive Company experienced the following accounting events during 2018: Performed services for $25,000 cash. Purcha
Mariana [72]

Answer &  Explanation:

<u>Operating Activities</u>

services collected 25,000

salaries paid           (14,000)

utilities paid             (2,800)

cash generated from operating activities 8,200

<u />

<u>Investing activities</u>

proceeds from land  9,000

purchase of land      (6,000)

cash generated from investing activities 3,000

<u />

<u>Financing Activities</u>

issuance of stocks 50,000

bank loan                  5,000

payment on loan    (10,000)

dividends paid         (5,000)

cash generated from financing activities 40,000

Total cash generated for the year ended December 31th, 2018 51,200

beginning balance                                                                            9,200

ending balance                                                                               60,400

Notes: Activities related to the daily operation wil lbe operating activities.

The transaction involving long-term assets will be investing activities

The stocks, dividends and loan, loan payment are financing activities for the company.

5 0
3 years ago
The capital structures of MNCs are influenced by​ ________. A. dividends paid by corporations B. domestic futures markets C. the
Galina-37 [17]

Answer:

D. international diversification

Explanation:

The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.

The effect of international diversification on capital structure can be explained through

1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.

2. Transaction cost theory. Internationalization is a way of   internatilize   intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to   develop these type of assets in their asset base.

3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.

3 0
2 years ago
The last data-entry clerk stealthily resigned in the middle of an overwhelmingly difficult database conversion project. Identify
slamgirl [31]

Answer:

The answer is b. Difficult.

Explanation:

The correct answer to the given question is b. Difficult. The word which describes the quality or intensity of verb is known as an adverb. The word Difficult is an adverb as it clarifies the measures the verb which is data base conversion project. Stealthiness is an adjective, the word Overwhelming is a verb and Data-Entry is also a noun.

7 1
3 years ago
If the unit sales price is $12, variable costs are $6 per unit, and fixed costs are $36,000, what sales volume (in dollars) is n
puteri [66]

Answer:

72000

Explanation:

Break even formula:

Break even in units=Fixed cost/Contribution margin per unit

= $ 36,000 / $ 6

= 6,000 Units

[Contribution margin=Sales price-Variable cost=12-6]

Break Even in Dollars = Break Even in Units * Selling Price Per Unit

= 6,000 Units * $ 12 Per Unit  = $ 72,000

3 0
3 years ago
Firm A produces desks. It is situated in the US but imports wood from Brazil. Last year it imported $8,000 in lumber and sold 10
Veronika [31]

Answer:

The correct answer is C: 48000

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

<u>The formula is: </u>

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

AddedGDP= 56000-8000

AddedGDP= 48000

6 0
2 years ago
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