All categories

3 years ago

Under the accrual basis of accounting:_________.

1 answer:

7 0

events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

Answer: Option C.

<u>Explanation:</u>

Accrual basis is a technique for recording bookkeeping exchanges for income when earned and costs when brought about. A key bit of leeway of the collection premise is that it matches incomes with related costs, so the total effect of a business exchange can be seen inside a solitary announcing period.

Accounting method that records incomes and costs when they are brought about, paying little heed to when money is traded. The expression "accrual" alludes to any individual section recording income or cost without a money exchange.

You might be interested in

In Year 8, Seda Corp. acquired 6,000 shares of its $1 par value common stock at $36 per share. During Year 9, Seda issued 3,000

Elena L [17]

Answer: Please see answer in explanation column

Explanation:

Using the cost method, treasury stock is credited for cost of the shares when it is reissued, while Cash is debited for amount received. Also, additional paid-in capital from treasury stock will be credited to show the difference.

journal entry to record the issuance of 3000 shares in year 9

Date Account Debit Credit

Year 9 Cash (3,000x $50) $150,000

Treasury stock (3,000x$36) $108,000

Additional paid-in capital- treasury stock $42,000

( $150,000 - 108,000)

7 0

4 years ago

Assume the market for manufactured houses is in equilibrium. Imagine that trade restrictions increased the cost of cement, which

xeze [42]

Answer: f. Supply of manufactured houses shifts leftward and manufactured houses increase in price

Explanation:

All else being equal, when the price of an input into the production process increases, it makes producing the goods in question more expensive and so producers will respond by reducing production levels to maintain Profitability.

As the price of cement rises, making manufactured houses becomes more expensive and so the makers of manufactured houses will reduce the number of manufactured houses they make. This will reduce Supply thereby shifting the Supply Curve to the left. The new Equilibrium level will indicate a higher Equilibrium price as shown in the attached graph.

7 0

3 years ago

If the IS curve is given by Y = 1,700 – 100r, the money demand function is given by (M/P)d = Y – 100r, the money supply is 1,000

Aleonysh [2.5K]

Answer:

The equilibrium income increases by 50.

Explanation:

The IS curve is given by Y = 1,700 - 100r

The money demand function is given as (M/P)d = Y - 100r

The money supply is 1,000.

The price level is 2.

Putting value of Y in money demand function.

1,000/2 = Y - 100r

500 = 1,700 - 100r - 100r

1700 - 500 = 200r

r = 1200\200

r = 6%

Putting value of r = 6% in IS curve equation

Y = 1,700 - 100r

Y = 1,700 - 600

Y = 1,100

Now, if the money supply is increased to 1,200.

Putting value of Y in money demand function.

1,200/2 = Y - 100r

600 = 1,700 - 100r - 100r

1700 - 600 = 200r

r = 1100\200

r = 5.5%

Putting value of r = 5.5% in IS curve equation

Y = 1,700 - 100r

Y = 1,700 - 550

Y = 1,150

So, we see that on increasing money supply from 1,000 to 1,200 the income increase by 50 and rate of interest falls by 0.5 percent.

4 0

3 years ago

Each day's receipts can be kept separate by

Allushta [10]

Answer:Could you add the options?

Explanation:

4 0

3 years ago

Define or critique the following stayement “people who are unable to put aside their own interests should not be on teams”

Aleks04 [339]

We sat down with Nguyen to get his perspective on everything from the ... As Bitcoin SV has emerged as its own separate chain and token, there's been a lot of .... Those elements together define, for me, what Bitcoin is and should be. ... that network did not follow the path for many years and veered away ...

8 0

3 years ago