Answer:
1. Available to finance expenditure of the current period
Explanation:
Government Accounting is concerned with propriety i.e judicious use of resources and allocation of government funds so as to ensure efficient performance of government entities.
Efficiency refers to input/output ratio whereas effectiveness refers to achievement of government programs.
Government requires funds for allocation to various projects which require sanctioning by an authority.
In the same context, the concept of "available" refers to the availability of funds to meet the current period expenditure and liabilities.
Answer:
The answer is b.Cash ,000 Notes Payable ,000
Explanation:
The exact entry Drake Builders Company has to record in its accounting book for the proceeds received from the issuance of the note is:
1st January
Dr Cash 400,000
Cr Note Payable 400,000
As at the time the note is issued, no interest expenses has been incurred, all the answer with Interest expenses can be eliminated.
In fact, interest expenses is only incurred and accrued during the lifetime of the note, based on the number of days the note is hold; that is, from the day the fund is lend out to Drake Builders Company; not on the day of issuance.
Answer:
The choice between consumption in the present and consumption in the future, perception of a close correlation between current income and consumption, and the smoothing of consumption over time as deriving from its comparison to the income which the individual would perceive as his/her permanent income.
Answer:
Dr Bonds payable $50,700
Dr premium on bonds payable $4,265
Cr Cash $53,000
Cr gain on bonds retirement($50,700+$4,265-$53000) $1,965
Explanation:
The premium yet to be amortized on the bond at retirement is the carrying value minus face value i.e $54,965-$50,700=$4265
The premium on bonds payable would now be debited with $4265
The cash paid on retirement would be credited to cash account
The face value of the bonds payable of $50,700 would be debited to bonds payable in order to show that the obligation has been discharged.
Answer:
Sales Revenue 212,000
Variable Cost (63,000)
Rent Expense (43,000)
Depreciation Expense (23,000)
Income before taxes 83,000
Income tax expense <u> (16,600) </u>
Net Income 84,800
Cash from operating activities 107,800
tax-shield from depreciation 4,600
Explanation:
Cash flow from operations (indirect method)
net income 84,800 + depreciation expense = 107,800
The depreciation provides a tax shield as they are an accounting concept. The depreciation expense did not involve the outflow of cash but, it is a taxable deduction therefore generates a tax-shield.
23,000 x 20% = 4,600
