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White raven [17]
3 years ago
9

If a company fails to record accrued interest revenue at the end of its fiscal year, all else being equal, what are the effects

on its net income, total assets, total liabilities, and total stockholders' equity?
Net income:
A. overstated
B. understated
C. no effect

Total assets :
A. overstated
B. understated
C. no effect

Total liabilities:
A. overstated
B. understated
C. no effect

Total stockholders' equity:
A. overstated
B. understated
C. no effect
Business
1 answer:
Rina8888 [55]3 years ago
4 0

Answer:

Net income: Understated

Total assets: Understated

Total liabilities: No effect

Total stockholders' equity: No Impact

Explanation:

Net income will be understated, because, revenue was not accrued.

Total assets will also be understated, because accrued revenue is not recorded in the current assets, thus total assets will be lowered in total.

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During its first year of operations, mario lupo formed lupo company as a corporation and personally invested $15,000 in the busi
SpyIntel [72]

Total equity of the company is the amount of invested plus the income generated during the year. If any dividend is paid during the year, the amount of dividend is subtracted before arriving at the ending shareholders’ equity.

Ending shareholders’ equity = Amount invested + Net Income – Dividend

= $15000 + ($35000- $23000) - $2000

= $27000

Therefore, shareholders’ equity balance would be $27,000.

6 0
3 years ago
Stock J has a beta of 1.26 and an expected return of 13.46 percent, while Stock K has a beta of .81 and an expected return of 10
Oxana [17]

Answer:

J = 0.422

K = 0.58

Explanation:

When a portfolio is said to have risk that is equal to market, this means that the beta is equal to 1.

Let us define the weight of stock J = x

Let us define the Weight of stock K = (1-x)

To get the The Beta of portfolio = (x*1.26) + ((1-x)*0.81) = 1

When we open the brackets,

1.26x + 0.81 - .81x = 1

1.26x-0.81x = 1-0.81

0.45x = 0.19

To get x we divide through by 0.45

X = 0.422

Therefore the Weight of stock J = 0.422

Then the Weight of stock K = 1 - 0.422 = 0.578

Approximately 0.58

5 0
3 years ago
The frequency distribution below summarizes the home sale prices in the city of Summerhill for the month of June. Determine the
yulyashka [42]

Answer:

For all types of classes, the width is same i.e 30.9

Explanation:

The width of each class is a difference between the frequency and sale price.

In Mathematically,

Width = Frequency - Sale price

So for all each class, the width is shown below :

1. 110.9 - 80.0 = 30.9

2. 141.9 - 111.0 = 30.9

3. 172.9 - 142.0 = 30.9

4. 203.9 - 173.0 = 30.9

5. 234.9 - 204.0 =  30.9

6. 265.9 - 235.0 = 30.9

Hence, For all types of classes, the width is same i.e 30.9

5 0
3 years ago
What is bootstrapping technique 1 buying as much as u can 2 leasing as much as u can
RUDIKE [14]

Answer:

2. Lease as much as you can.

Explanation:

The term 'bootstrapping' can be defined as a process used by entrepreneurs to bringing in use their own assets as the capital resource. These resources can include personal savings, personal property area, etc. An enterprenuer can use these resources to ensure positive cash flow.

The most common way of bootstrapping is to lease your resources. One can lease his/her resources as much as one can under bootstrapping technique.

Therefore, option 2 is correct.

3 0
3 years ago
A report containing information used to calculate taxes owed by the taxpayer is called what?
vaieri [72.5K]

Answer:A tax return is a form or forms filed with a tax authority that reports income, expenses, and other pertinent tax information. Tax returns allow taxpayers to calculate their tax liability, schedule tax payments, or request refunds for the overpayment of taxes.

Explanation:

6 0
3 years ago
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