Companies using the accrual concept of accounting to complete the measurement process at the year end through the recording of adjusting entries.
<h3>What is an accrual concept?</h3>
An accrual concept is one of the method which records the incomes at the time when it is earned or charges when it is incurred.
Adjusting entries are the entries recorded in the accounting books to close all the accounts at the year end. It helps in determining the correct amount of charges and revenues at the time of finalizing the accounting statements.
Therefore, the adjusting entries are used by the company to complete the measurement process while applying the accrual concept.
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Answer:
Kate purchases stock in Pherk, a pharmaceutical company.
Hubert purchases a new condominium in Houston.
Clancy purchases a certificate of deposit at his bank.
Eileen borrows money to build a new lab for her engineering firm.
In macroeconomics, investment refers to the goods that we purchase not to be consumed right away, but instead will be used to produce more goods or create wealth in the future. E.g. purchase of equipment, new homes by private consumers, additional inventories, etc.
Savings refers to the money that households have left after paying all their taxes, debts, obligations and consumption expenses. E.g. savings in banks
Answer:
A) Debit Interest Receivable $175; credit Interest Revenue $175.
Explanation:
The adjusting entry that made as on December 31 is shown below;
Interest receivable Dr $175
To Interest revenue $175
(Being the interest receivable is recorded)
The computation is shown below:
= $15,000 × 10% × 42 days ÷ 360 days
= $175
The 42 days are from November 19 to December 31
Here the interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue
Answer:
a. True
Explanation:
Business writing has a general tip to always make sentences shorter than 20 words. However, it would be very monotonous if every single sentence in a business text was short. Therefore, it is wise to introduce a longer sentence every now and then in the text. It should be kept in mind that even in that case, the sentence shouldn't be too long. Then it would just bring incomprehensibility in the text.
