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Gnoma [55]
3 years ago
11

The basic principle involved with expense recognition is____________.a. The business will continue to operate indefinitely unles

s there is evidence to the contrary. b. All transactions are recorded at the exchange price.c. The business is separate from its owners.d. All costs that are used to generate revenue are recorded in the period the revenue is recognized.
Business
2 answers:
valkas [14]3 years ago
7 0

Answer:

The correct answer is letter "D": All costs that are used to generate revenue are recorded in the period the revenue is recognized.

Explanation:

According to the basic matching principle, revenues and the expenses necessary to obtain those revenues must be recorded during the same accounting period. This is part of what constitutes the accrual basis method of accounting that states expenses and revenue should be recognized when incurred not when cash is received.

olga2289 [7]3 years ago
6 0

Answer:

d. All costs that are used to generate revenue are recorded in the period the revenue is recognized.

Explanation:

The matching concept provides that expenses incurred in the process of generating sales should be recognized in the period for which revenue has been or will be recognized.

Hence, the basic principle involved with expense recognition is that all costs that are used to generate revenue are recorded in the period the revenue is recognized.

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Describe a scenario that forced you to wrestle with your values?
Trava [24]

Answer:

To use brainly or to not use brainly. I dont like cheating but sometimes I realy need help.

Explanation:

7 0
3 years ago
Allison's requires $180,000 to fund a new project next year. The firm expects to earn excess cash of $68,000 this year after all
liraira [26]

$0 is needed

<u>Explanation:</u>

As per pecking order theory the risks and consequently cost increases in the order of own cash reserves, debt and then fresh equity . Since own cash reserves and debt could take care of funding requirement, so according to the pecking order theory as studied, the fresh equity needed is $0, which means there is no requirement.

Therefore, there should be no equity capital that should be raised in order to fund the project.

The correct answer is $0 equity.

4 0
3 years ago
What financial behaviors will typically lead to a low credit score?
Leviafan [203]
Here are some behaviors that will give you low credit score :

- If you always maxed out your credit card limits, it make you seems irresponsible 
- If you never paid your credit bills on time
- If you always change your living address 

but as long as you have a good history of paying your credit bills on time, your credit score will be fine

4 0
3 years ago
Read 2 more answers
The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,
Umnica [9.8K]

Answer:

annuity factor for 20% and 6 periods = 3.326

Explanation:

the IRR represents the discount rate at which a project's NPV = 0

NPV = initial outlay + PV of future cash flows

NPV = 0

initial outlay = -$831,500

PV of future cash flows = $831,500 = cash flow x annuity factor

annuity factor = $831,500 / $250,000 = 3.326

using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.

So our IRR = 20%

5 0
3 years ago
Place the events in order to describe how money the Fed adds to the economy starts to be multiplied. The reserve requirement in
Charra [1.4K]

Answer:

1. e. The Fed buys a security from a bank for $1,000.

In order to increase money supply, the Fed buys a security from the bank and gives them money.

2. d. The bank sets $100 aside as required reserves.

The bank will set aside 10% of the money paid by the Fed which comes to $100 leaving the bank with $900.

3. a. The bank lends $900 to a customer needing a loan.

The bank then lends this money to customer who needed it.

4. c. The customer spends the $900 at a store.

The customer then spends the money thereby transferring it to another party.

5. b. The store owner deposits the $900 in another bank.

The store owner then takes the money spent by the customer and deposits it in another bank. That bank then gives the Fed 10% and then the cycle repeats.

4 0
3 years ago
Read 2 more answers
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