All categories

3 years ago

Credits are used to record:___________

Business

1 answer:

muminat3 years ago

4 0

Answer:

The correct answer is letter "B": decreases to assets and expenses and increases to liabilities, revenues, and stockholders' equity.

Explanation:

When it comes to accounting book-keeping, a credit is an entry that increases liabilities (amounts owed to third parties) and equities (assets minus liabilities) in their corresponding accounts or decreases assets (resources owned by the company) and expenses (costs of the business operations) accounts.

You might be interested in

. Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share duri

PilotLPTM [1.2K]

Answer: $428

Explanation:

From the question, we are informed that one bought 100 shares of stock at an initial price of $37 per share and that the stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41.

The total dollar return on this investment will be calculated as:

= 100(41 - 37 + 0.28)

= $428

4 0

2 years ago

Why does a small difference in economic growth result in a large difference in wealth over time?

larisa [96]

Answer:

The correct answer is the option C: Because the effect of compounding allows growth to build upon previous growth.

Explanation:

To begin with, the term of "Compounding" in economics refers to the situation in which an assets' earnings are reinvested to generate more additional earnings over the pass of time and therefore that in an economy when there is a small growth the investors take advantage of the effect that the compounding has over the situation and use it in order to generate more earning in the future and that is why that the the effect of compounding allows growth to build only upon previous growth.

7 0

2 years ago

Jared expects to charge $60 per hour for his industrial maintenance business during the following year. He expects to reach 50,0

Nataliya [291]

Answer:

Explanation:

He should work with the 50,000 hours estimate instead of the 40,000 in order to avoid shortage of funds during the business year

8 0

3 years ago

Smiley Industrial Goods has $1,000 face value bonds on the market with semiannual interest payments, 13.5 years to maturity, and

Snezhnost [94]

Answer:

Annual Coupon rate = 66.56990711 / 1000 = 0.06656990711 or 6.656990711% rounded off to 6.66%

Option B is the correct answer

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = C

Total periods (n) = 13.5 * 2 = 27

r or YTM = 0.064 * 6/12 = 0.032 or 3.2%

The formula to calculate the price of the bonds today is attached.

We will first calculate the value of semi coupon payment made by the bond.

1023 = C * [( 1 - (1+0.032)^-27) / 0.032] + 1000 / (1+0.032)^27

1023 = C * 17.8994796 + 427.2166529

1023 - 427.2166529 = C * 17.8994796

595.7833471 / 17.8994796 = C

C = 33.28495355 rounded off to 33.28

The annual coupon payment will be = 33.28495355 * 2 = 66.56990711 rounded off to 66.57

Annual Coupon rate = 66.56990711 / 1000 = 0.06656990711 or 6.656990711% rounded off to 6.66%

4 0

2 years ago

Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonu

marishachu [46]

Answer:

$42,853

Explanation:

The computation of the allowable MACRS depreciation on Convers’s property in the current year is shown below:

Assets Place in service Quarter Original Basis Rate Depreciation

Machinery

(7 years) Oct 25 4th $70,000 14.29% $10,003

Computer

Equipment

(5 years) Feb 03 1st $10,000 20% $2,000

Used delivery

truck

(5 years) Mar 17 1st $23,000 20% $4,600

Furniture

(7 years) Apr 22 2nd $150,000 14.29% $21,435

Qualified

improvement

(39 years) May 12 2nd $300,000 1.605% $4,815

Total $553,000 $42,853

Refer to the MACRS depreciation table

and we used the half year convention

5 0

3 years ago