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3 years ago

The debit side of an account

Business

1 answer:

Vikki [24]3 years ago

4 0

Loan investment account.. can be either side of the account depending on how the accountant set up the system

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Which of the following formulas is used to compute the accounting rate of return?

tekilochka [14]

Answer:

Option (A) is correct.

Explanation:

Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:

Accounting rate of return = (Average Income ÷ Initial Investment)

For example:

Net profit for 3 years are as follows:

2012 - 13 = $50 million

2013-14 = $100 million

2014-15 = $150 million

Initial investment = $200

Average profit = ($50 + $100 + $150) ÷ 3

= $100

Accounting rate of return = (Average Income ÷ Initial Investment)

= $100 ÷ $200

= 0.5 or 50%

5 0

3 years ago

A performance obligation is:

ANEK [815]

Answer:

Explanation:.

5 0

3 years ago

The difference between a firm's operating income and income before taxes is _____. The difference between a firm's before-ta

monitta

Answer: Option A

Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.

While calculating accounting profit, opportunity cost is not deducted from the revenue hence before tax and after tax depicts the investments that were made to earn that profit.

3 0

2 years ago

Read 2 more answers

The best definition of an accounting system is: The concepts, principles, and standards specifying the information which should

White raven [17]

Answer:

The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers.

Explanation:

Accounting system is a system used to organise financial information. Accounting system can be manual or electronic

7 0

3 years ago

XYZ Company ended year 1 with accounts receivable of $100,000. On February 1, Year 2 XYZ provided services on account for $40,00

avanturin [10]

Answer:

Account at December 31th, Year 2: 210,000

Explanation:

We work this using the following reasoning

beginning accounts receivable

+ sales on accounts

Total amount to collect

- collection through the period

ending accounts receivable

year 2

beginning accounts receivable 100,000

+ February 1st sale on account 40,000

+ November 1st sale on account 70,000

total amount to collect 210,000

As we are not given with any data for collection we assume is zero.

Therefore ending AR balance:

210,000 - 0 = 210,000

8 0

3 years ago