Answer: The correct answer is a. Debit to an expense account and a credit to a liability account.
Explanation: An accrued expense is an expense incurred but yet to be paid for. For instance a consultancy service.
To record this transaction, a debit to the expense account will be recorded to increase expenses and a credit to liability account to increase what is owed.
Answer:
The maximum that should be paid for the stock today is $8.47
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- r is the required rate of return
P0 = 0.7 * (1+0.016) / (0.10 - 0.016)
P0 = $8.466666667 rounded off to $8.47
Answer:
Part 1
<u>Cash Account</u>
$
<u>Debit :</u>
Receive cash from customers 15,000
Sale of Equipment 8,000
Bank Loan 4,000
Totals 27,000
<u>Credit :</u>
Pay cash for employee salaries 9,000
Rent 3,000
Utilities 1,000
Advertising 7,000
Ending Balance 7,000
Totals 27,000
Part 2
Ending Balance is $7,000
Explanation:
Only Cash related purchases and receipts are posted to Cash Account. Thus ignore non-cash related transactions.
The Cash Account : Receipts are posted at the Debit side of this Account and Payments at the Credit Side.
The Balance : After determining the Totals of the Debit and Credit, the shortfall of any of that side represents the Balance.
Answer:
FTC: prohibits deceptive practices and provides information about choosing products
SEC: prohibits insider trading and regulates brokers and investment advisers
Answer:
Yes
Explanation:
Advanced directive will is a written instruction that guides on the specific type of medical and health treatment the decision maker will prefer in the situation that he is unconscious to make such in the future. It is written while the decision maker is still healthy and in a good state of mind.
However , some advance directive can specify some desired treatment to aid recovery.
In the scenario , the decision to have all appropriate treatment was taken while Babinski was still conscious , therefore it did not void the advance directive
