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dolphi86 [110]
3 years ago
9

After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $

5,700 debit balance. This result implies that Cleaver earned a net income of $5,700.
a) true
b) false
Business
1 answer:
e-lub [12.9K]3 years ago
5 0

Answer: False

Explanation:

The Income Summary Account contains the ending accounts of all revenue and expense accounts in a company with the net amount transferred to the account being the company's net profit (loss).

Income as an equity item is credited when it increases and debited when it decreases meaning that a debit represents a net loss. Cleaver Auto Services having a $5,700 debit balance in their Income summary account means that they have made losses of $5,700 not income.

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Answer:

$20,441.67

Explanation:

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you can earn a 10% annual interest rate for 10 years, that means that we can use a future value of an annuity factor = 15.937

your annual investment = future value of the house / annuity factor = $325,778.93 / 15.937 = $20,441.67

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Wytes Pharmaceuticals wants to shift its list of inventory to a cloud so that its different branches can access it easily. The c
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When the laptop market overtook the desktop market, blue tech inc., a leader in desktop technology, was left at a competitive di
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In this scenario, Blue Tech Inc.'s failure can be best attributed to <u>"Time compression diseconomies."</u>


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5 0
3 years ago
3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t
Nady [450]

Answer: Option (C) is correct.

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Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

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3 years ago
Liam​ O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The qu
Rashid [163]

Because the future value of annual premiums deposited in a mutual fund is 755 (F/A, 9%, 45) = $397,023.34, Then, the friend is correct since the mutual fund is roughly three times the sum under the Insurance policy.

<h3>Was Liam's suggestion correct?</h3>

Generally, Premium  payment is mathematically given as

X=60-20

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755 (F/A, 9%, 45)

In conclusion

755 (F/A, 9%, 45)  = 755 * 525.8587

755 (F/A, 9%, 45) = $397,023.34

Read more about Arithmetic

brainly.com/question/22568180

Complete Question

Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.39 per thousand dollars of insurance coverage Because Liam wants a $90,000 policy (which is 2.5 times his annual salary), the annual premium would be $755, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $755 annual premium should be deposited in a good mutual fund rather than in the insurance policy. "If the mutual fund earns 9% per year, you can become a millionaire by the time you retire at age 65," the friend advises.

3 0
2 years ago
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