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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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Description of the the target market is formed in the___ part of the business plan
Alexandra [31]

Answer:

Market analysis

Explanation:

A business plan is a document that shows the goals of a business and details the roadmap to achieve them. It has several sections, with each giving specific information about the business.

The market analysis part talks about the target clients. The sections give detailed data on the industry, including competitors, market performance, and prevailing trends. It describes customers in the target industry.

5 0
3 years ago
Tell whether the statement is TRUE or FALSE. Deregulation always leads to lower prices for the consumer.
SVEN [57.7K]
FALSE. Deregulation allows vendors or sellers to set individual prices with no regulation, therefore more likely to set higher rates.
5 0
3 years ago
Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value,
elena-14-01-66 [18.8K]

Answer:

2.11%

YTM 0.089142162

YTC 0.068070103

Difference: 0.021072059 = 0.0211 = 2.11%

Explanation:

To calculate each rate we must solve for a rate at which the future coupon payment and maturity (or call value) equals the market price:

This is solve for excel and goal seek tool

It could also be solve with a financial calculator

YTC:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment: $ 120

time 5 yeaars

rate 0.068070103 (solved with excel)

120 \times \frac{1-(1+0.0680701028057608)^{-5} }{0.0680701028057608} = PV\\

PV $494.5766

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity: $ 1,050 (call price)

time   5.00

rate  0.068070103

\frac{1050}{(1 + 0.0680701028057608)^{5} } = PV  

PV   755.42

PV c $494.5766

PV m  $755.4235

Total $1,250.0002

YTM:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Cuopon payment: $ 120

time 15 years

rate 0.089142162 (solved with excel)

120 \times \frac{1-(1+0.0891421622982136)^{-15} }{0.0891421622982136} = PV\\

PV $972.2006

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity $ 1,000.00

time   15 years

rate  0.089142162 (solved with excel)

\frac{1000}{(1 + 0.0891421622982136)^{15} } = PV  

PV   277.80

PV c $972.2006

PV m  $277.7995

Total $1,250.0001

6 0
3 years ago
On June 1, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated usefu
Alex_Xolod [135]

Answer:

It is $30,000(C)

Explanation:

Depreciable cost = $90,000

Using straight-line method,

Annual depreciation = $90,000/3

                                  = $30,000.

Hence, depreciation expense at the final year of service is $30,000

We cannot make use of entire cost of equipment of $120,000 because it seemed the company wanted to sell its scrap value for  $30,000. Hence, this has been used to reduced it cost to $90,000 which is a depreciable cost .

7 0
3 years ago
Diminishing returns are a reason that fixed costs remain constant. the marginal cost curve is upward sloping. the average fixed
Molodets [167]

Answer:

the marginal cost curve is upward sloping.

Explanation:

Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.

This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

Basically, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.

For example, buying a candy stick and eating it may satisfy your cravings but eating another one (an additional or extra unit) wouldn't give you as much satisfaction as the first due to diminishing marginal utility.

In Economics, the law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.

Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity. A marginal cost curve is upward sloping because of the law of diminishing returns.

4 0
3 years ago
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