Answer:
$5,000
Explanation:
Data given in the question is
Withdrawn amount = $100,000
Interest rate = 5%
Accounting profit = $10,000
So, by considering the above information, the economic profit is
= Accounting profit - Withdrawn amount × interest rate
= $10,000 - $100,000 × 5%
= $10,000 - $5,000
= $5,000
The Withdrawn amount × interest rate reflect the opportunity cost
Answer:
The company must borrow $3000 and option B is the correct answer.
Explanation:
The minimum cash balance is the required balance that the company should have at the end of the period. The decision to borrow or repay will be taken by comparing the period end balance with the minimum balance. If the period end balance is higher than the minimum balance, the company may decide to repay. If it is lower than the minimum balance, the company should borrow.
The period end balance can be calculated as,
Ending balance = Opening Balance + Cash receipts - Cash disbursements
Ending balance = 17000 + 120000 - 130000
Ending balance = $7000
Difference = 7000 - 10000 = -$3000
As the ending cash balance ($7000) is less than the minimum cash balance required ($10000), the company should borrow for the amount of difference. Thus, the company should borrow $3000
Answer:
Debit Cash Account $12,000
Credit Unearned Revenues Account $12,000
Being advance payment for marketing research services by Anderson
Explanation:
Revenue received before it is earned are reported as liability until it is earned, this is consistent with accrual basis of accounting. when payment for service not yet performed or goods not yet delivered is received, such a payment must not recognized in the period of payment but in the period when that service is preformed or when the goods are delivered.
The treatment for advance payment of income is a debit to cash or bank and a credit to unearned revenues account or income received in advance account.
Answer:
Chefs? that wash the ingredients purely
Explanation:
<span>Wendy should use a descriptive statistic. This statistic summarizes a data set so it is easier to comprehend and read over. The main goal of descriptive statistics is to simply describe the data given. You do not use this statistic to draw conclusions and make assumptions.</span>