Answer & Explanation :
Bank Reconciliation Statement is prepared to reconcile (match) the differences between bank balance as per cash book & bank balance as per pass book, at end of an accounting period.
The differences may arise because of following reasons :
- Errors committed by firm or bank
- Cheques paid but not collected, upto the last date (added in cash book, but not in bank balance)
- Cheques issued but not yet presented for payment, upto last date (subtracted in cash book, but not in bank balance)
- Direct expenses & direct incomes settled by bank (done in bank balance, but not in cash book)
BRS involves starting with balance as per any book - cash book or passbook. Then, the adjustments for mismatch are done, to arrive at correct balance as per the other book.
Answer:
A family in a distant state gives bottled water to its dog, but a family in the hurricane area cannot find bottled water to drink.
Explanation: Hurricane is a natural phenomenon which occurs as a result of violent storms developing and accumulating in a given area, Hurricane can be very devastating destroying lives and properties. the most misallocation of resource considering the options is when a dog in A family in a distant state gives takes bottled water, but a family in the hurricane area cannot find bottled water to drink.
Answer:
The main challenge associated with payments across international borders is the challenge of currency rates. Because currencies vary across countries, sometimes a payment can be either hugely benefitial or hugely detrimental for a company, depending on how expensive or cheap its domestic currency is compared to the foreign currency.
Another challenge is related to international legislation, banking systems, red tape, and so on. Banking laws in some countries are more favorable to firms than in others, for example, by charging less financial expenses or comissions.
Answer:
Transfer payment
Explanation:
Transfer payment in finance can be as well regarded as " government transfer" it is income and wealth redistribution which occur when payment is made by government without exchange of goods or services in return. It should be noted that Transfer payment is a form of government spending that is not made in exchange for a currently produced good or service. Some of the common transfer payment type is social insurance programs, as well as business subsidies.
Answer and Explanation:
1. The 8.4% bonds should be classified as "current liability" in Transit's balance sheet. This is because there is an option of calling the bonds on July 31, 2017 and if the bond holders demand payment then the liability will have to be paid on July 31, 2017 and this will represent a period that is less than a year (from December 31, 2016 to July 31, 2017).
The amount to be recorded will be $67 million.
2. The 8% loan of $45 million will be recorded as a "long term liability". This is because the loan is payable in the year 2022 and so will be in the books for a period of more than one year. Also the decline in parts inventories is intentional and will be corrected. This will ensure that current ratio is in the required range.
The amount to be recorded is $45 million i.e. the amount of the loan.
3. The amount of $53 million - $48 million = $5 million will mature in May 2017. As the period is less than a year it will be recorded as a "current liability" and the amount will be $5 million.
The balance amount of $48 million will mature in two years from the date of borrowing. Hence the amount of $48 million will be recorded as a "long term liability".
4. For the lawsuit a disclosure note should be provided. This is because the suit is in appeal and as per accounting laws will not be considered probable.
5. Total current liabilities = accounts payable+8.4% bonds+current portion of 4% notes = $55 million+$67 million+$5 million = $127 million
Long term debt = 8% bank loan+4% notes = $45 million+$48 million = $93 million.
Total liabilities = current+long term = 127+93 = $220 million
