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3 years ago

The balance of an account is determined by

Business

1 answer:

AlladinOne [14]3 years ago

4 0

Answer:

(B) adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum

Explanation:

While calculating the closing balance of any account,

There includes two possibilities that the account might have debit balance or the account might have credit balance. And for computing this:

All the debits shall be accumulated and then their total shall be computed.

Similarly, all the credits shall be accumulated and their total shall be done.

Which ever is more then the account will have that nature of balance, accordingly the smaller shall be deducted from the larger one and the larger one will decide the nature of balance whether debit or credit.

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A contractual disagreement led to a seller’s reducing the contract price by $1000. this agreement would be

miskamm [114]

A situation in which a contractual agreement led and resulted in a seller's reducing the original contract to a lesser contract value with a price difference of $1000. During this agreement, the seller or a builder agreed to have and accept a lesser consideration. The builder adjusted his agreement contract amount just to please the customer and chose their company over the other.

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3 years ago

A customer buys 100 shares of XYZ stock at $43 per share. The customer then sells 1 XYZ $45 Call contract for a premium of $500.

tigry1 [53]

Answer:

$4,300

Explanation:

Since the call expired, the $500 premium must be reported as a short term capital gain. Short term capital gains are taxed in the periods that they occur, so they do not affect the basis of the stocks. It is something similar to dividends, if you receive dividends they will be taxed as short term gains = ordinary income, bu they do not affect the stocks' basis.

6 0

3 years ago

Need help please !!!

Finger [1]

The answer is c. Corporate taxes

3 0

3 years ago

Firm A has $1 million in operating income and pays $250,000 in interest. In addition, firm A has $7.50 EPS. Firm B has an operat

Vitek1552 [10]

Answer:

$10.00

Explanation:

Earning per share is the ratio of net Income of the business per outstanding share of the business after deducting the preferred dividend from net earning. It shows how much each stockholder earn against their each share in a specific period.

Earning Per share ( EPS ) of Firm A = $7.50 per share

Number of outstanding share can be calculated as follow

EPS = Net Income / Outstanding Numbers of share

Outstanding Numbers of shares = Net Income / EPS

Outstanding Numbers of shares = ($1,000,000 - $250,000) / $7.5 per share = 100,000 shares

Firm B

As Tax will be ignored, interest expense is also same as the Firm A and numbers of share is also sames.

Operating Income = $2.0 million = $2,000,000

Less: Interest expense $250,000

Net Income $175,000

EPS = $175,000 / 100,000 share = $17.5 per share

Difference = $17.5 - $7.5 = $10 per share

8 0

3 years ago

On September 1, 2020, Concord Corporation acquired Skysong Enterprises for a cash payment of $790,000. At the time of purchase,

sladkih [1.3K]

Answer:

$710,000

Explanation:

For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:

The fair value of net asset = The fair value of Skysongâs assets - the fair value of liabilities

= $890,000 - $180,000

= $710,000

And, the acquired value of Skysong Enterprises for cash is $790,000

So, the goodwill would be

= $790,000 - $710,000

= $80,000

5 0

3 years ago