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3 years ago

Correctly match the accounting treatment with the specific scenario described.

Business

1 answer:

Cloud [144]3 years ago

8 0

Answer:

1. a

2. a

3. b

4. a

Explanation:

A liability is a present obligation of the entity arising as a result of past event, the settlement of which will result in the outflow of economic benefits. It is presented in the Statement of Financial Position

A provision is a liability of uncertain timing and amount. It is also presented in the statement of Financial Position and disclosed.

A contingent liability is an obligation that arises from past event and whose existence will be confirmed by the occurrence or non-occurrence of one or uncertain future events, not wholly within the control of the entity. Contingent liabilities are not recorded in Financial Statements but disclosed in the notes to financial statements.

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The ______ is what a consumer or marketing intermediary actually pays for a product after subtracting any discounts, allowances,

julia-pushkina [17]

The correct answer is market price.
Market price is the price that you normally pay when you want to buy something. This price is usually higher than what the store that is selling it got it from the manufacturer, because it is buying the product in bulks. You as a consumer will have to pay this price when all discounts, allowances, and rebates are subtracted.

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4 years ago

Unfortunately, Angie doesn't have enough money in her account right now. She needs to make additional contributions at the end o

SIZIF [17.4K]

Answer: $770.22

Explanation:

If she makes equal contributions then those would be annuities. The $9,000 she wants to have will be the future value of the amount currently in her account and the annuity.

9,000 = 5,000 ( 1 + r) ^ n + ( annuity * future value interest factor of an annuity, 9%, 3 years)

9,000 = 5,000 ( 1 + 9%) ^ 3 + ( Annuity * 3.2781)

9,000 = 6,475.145‬ + 3.2781 * Annuity

Annuity = (9,000 - 6,475.145‬) / 3.2781

Annuity = $770.22

4 0

3 years ago

15. Your company contracted for a 30-second commercial (an advertisement) that aired during the Super Bowl at a cost of $1.2 mil

Diano4ka-milaya [45]

Answer: D) It increases liabilities and decreases stockholders' equity by $1.2 million each.

Explanation:

Even though the company has not paid for the advertisement, the expense has already been incurred and by the Accrual principle of accounting it needs to be recorded.

It will therefore be recorded as an expense which will reduce the Income for the year which is a Stockholder equity account so therefore it will reduce the Stockholder account by $1.2 million.

Because the company has not yet paid for the advert, the amount have to be recorded as a liability to the company so liabilities will increase by $1.2 million.

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3 years ago

The profits from a mutual savings bank go to the:

Llana [10]

It goes to the stockholders

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4 years ago

If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded, how many belts will Morocco gain compared to the

motikmotik

Answer:

If Morocco produces 120 belts and exports 70 belts:

it will receive 105 swords (= 70 x 1.5)
it will consume 50 belts (its domestic consumption of belts will decrease by 10)

Explanation:

Without trade, Morocco will produce 60 swords and 60 belts and consume them all, but if it engages in trade, it will produce 120 belts.

Morocco's opportunity cost of producing one belt = 60 / 60 = <u>1</u>
Morocco's opportunity cost of producing one sword = 60 / 60 = 1

Estonia's opportunity cost of producing one belt = 100 / 40 = 2.5
Estonia's opportunity cost of producing one sword = 40 / 100 = <u>0.25</u>

If Morocco produces 120 belts and keeps current consumption level:

it consumes 60 belts
it can trade 40 belts for 60 swords
it will have a 20 belt surplus production

If Morocco produces 120 belts and exports 70 belts:

it will receive 105 swords (= 70 x 1.5)
it will consume 50 belts

6 0

4 years ago