True, When a currency is experiencing high inflation, then it’s buying power is decreasing, and investors like me will not want to hold it.
Answer:
Bank adjusted balance 5,720
Explanation:
6,300
-840 outstanding check
+260 deposit in ransit
5,720 bank adjustment balance
<em><u>Notes:</u></em>
- the bookkepper error needs to be done on books cash account
- the service charge are included in the bank statemnt, is at adjustment to the book cash
- the interest revenue is also 22 an adjustment for the book cash account
Yes so good indeed queen keep it up
the answer is: it helps prevent people from keeping their cash out circulation
After collecting the money from the saver, Banks will provide loans to other business who needs a capital injection and put an interest rates from the total loan. This is the main way Banks obtain their profit.
This means that <em>The more cash kept out of circulation , the more profit the Banks can potentially get.</em>
Because of this, they offers various incentives for the saver to kept their money in the banks rather than using it somewhere else through interest, deposit insurance, maximum withdrawal, etc)
Answer:
D) Report a prior period adjustment decreasing retained earnings by $1,365,000
Explanation:
Accrual accounting rate-of-return method: In this method, the recording of the transactions should be done based on an accrual basis which means whether the amount is received or not but it is recorded in the books of accounts.
In the given case, there is an unrecorded liability for $2.1 million for prior year which is recorded after considering the tax expense. So, the computation is shown below:
= Unrecorded liability - unrecorded liability × tax rate
= $2,100,000 - $2,100,000 × 35%
= $2,100,000 - $735,000
= $1,365,000
