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Vlada [557]
3 years ago
7

The primary difference between the accrual basis and the cash basis of accounting is: (You may select more than one answer. Sing

le click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. The accrual basis records revenues when services or products are delivered and records expenses when cash is paid
b The accrual basis records revenues when services or products are delivered and records expenses when incurred.
c. The cash basis records revenues when services or products are delivered and records expenses when paid
d. The cash bases records revenues when cash is received and records expenses when cash is paid
Business
1 answer:
sashaice [31]3 years ago
4 0

Answer:

b The accrual basis records revenues when services or products are delivered and records expenses when incurred; AND -

d. The cash bases records revenues when cash is received and records expenses when cash is paid

Explanation:

Accrual basis of accounting states that transactions are recorded based on when they are entered into, irrespective of the cash exchange done or not. Revenues are recognised when buyer's liability to pay has been established, expenses are recorded when our liability to pay has been established. Debtors & Creditors, outstanding & prepaid expenses, accrued & prepaid income are all implications of this basis.

Cash basis of Accounting states that transactions are recorded based on when cash exchange has occurred. 'Liability to pay' or 'obligation to receive' have no relevance in this, it is only evaluated on the basis of cash transactions. 4 implications given in accrual basis are also inapplicable here.

Accrual basis is the more generally accepted one than cash basis, as it gives a true picture of enterprise performance in an accounting period.

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A perpetuity will pay $300 per year, starting five years after the perpetuity is purchased. is purchased. What is the present va
Maru [420]

Answer:

present value of perpetuity = $29615.93

Explanation:

given data

pay = $300 per year

interest rate = 3%

solution

we get here present value payment after 5 year is

present value = \frac{future\ value}{1+ discount\ rate } ...........1

present value = \frac{1000}{(1+0.03)^5}

present value = $862.60

and

now we get present value on purchase date

present value = \frac{payment}{interest\ rate}   ......2

present value = \frac{862.60}{0.03}

present value = $28753.33

and

present value of perpetuity is

present value of perpetuity =  $862.60 + $28753.33

present value of perpetuity = $29615.93

5 0
3 years ago
A company had inventory on November 1 of 5 units at a cost of $19 each. On November 2, they purchased 10 units at $21 each. On N
nydimaria [60]

Answer:

The answer is $221

Explanation:

LIFO means Last in First out i.e the inventory that was bought last will be sold out first.

Opening balance:

November 1: 5 units at $19 each

Purchased:

November 2: 10 units at $21 each

Purchased:

November 6: 6 units at $24 each

Sold:

November 8: 10 units at $54 each

Total number of units bought plus Beginning inventory = 5 + 10 + 6 = 21 units

Therefore, number of units remaining at November 8 after sales is 21 - 10

=11 units.

So according to LIFO, we have:

6 units at $21 = $126

5units at $19 = $95

$95 + $126

=$221

7 0
2 years ago
If your budget allowed you extra money for this month, would you choose to consume, invest, or save that money? Why? Be specific
ruslelena [56]
Personally, I would choose to save that money. The reason why is you never know - maybe something bad is going to happen and you will need that extra cash. So instead of splurging it on material things, it's better to save it for a rainy day, in my opinion. Investing is not safe, given that you may lose a lot more than you invest. 
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2 years ago
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The Federal Open Market Committee promotes price stability and economic growth through management of the money supply oversight
nevsk [136]

Answer:

management of the money supply

Explanation:

The Federal Open Market Committee (FOMC) is made up of seven members of the Board of Governors, the president of the federal reserve bank of New York and four rotating regional federal reserve bank presidents. It is in charge of conducting the Fed's monetary policy, i.e. buying and selling US securities to increase or decrease the money supply.

6 0
2 years ago
Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk? a. Policymak
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Answer: i think the third one maybe... (APEX)

Explanation: this should work

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