All categories

3 years ago

In preparing closing entries

Business

2 answers:

mrs_skeptik [129]3 years ago

6 0

Answer:

a. each revenue account will be credited.

Explanation:

In accrual accounting revenues and expenses are realised and recorded when the revenues are earned or when expenses are incurred.

Temporary accounts are used to store balances from the revenue or expense activities of a business.

Eventually these accounts are closed out to permanent revenue and expense accounts. Revenues are credited to reflect income earned, and expenses are debited to reflect costs incurred.

Elanso [62]3 years ago

4 0

Answer:

B) each expense account will be credited.

Explanation:

Revenue and expense accounts are temporary accounts since they basically show how the company operated during the year and must be rest for the next accounting period.

First all revenue and expense accounts must be closed to an income summary account. Expense accounts are closing by crediting them and revenue accounts are closed by debiting them.

Then the income summary account and the dividends account must be closed to retained earnings. The only "permanent" account in this sequence is retained earnings that is part of shareholders' equity.

You might be interested in

You are considering two investment alternatives. The first is a stock that pays quarterly dividends of $0.32 per share and is tr

MrMuchimi

Answer:

The 1-year HPR for the second stock is 12.84%. The stock that will provide the better annualized holding period return is Stock 1.

Explanation:

For First stock

Total dividend from first stock = Dividend per share * Number quarters = $0.32 * 2 = $0.64

HPR of first stock = (Total dividend from first stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($0.64 + ($31.72 - $27.85)) / $27.85 = 0.1619, or 16.19%

Annualized holding period return of first stock = HPR of first stock * Number 6 months in a year = 16.19% * 2 = 32.38%

For Second stock

Total dividend from second stock = Dividend per share * Number quarters = $0.67 * 4 = $2.68

Since you expect to sell the stock in one year, we have:

Annualized holding period return of second stock = The 1-year HPR for the second stock = (Total dividend from second stock + (Selling price after six months - Initial selling price per share)) / Initial selling price = ($2.68+ ($36.79 - $34.98)) / $34.98 = 0.1284, or 12.84%

Since the Annualized holding period return of first stock of 32.38% is higher than the Annualized holding period return of second stock of 12.84%. the first stock will provide the better annualized holding period return.

The 1-year HPR for the second stock is 12.84%. The stock that will provide the better annualized holding period return is Stock 1.

6 0

3 years ago

James has a marginal tax rate of 24%. He suddenly realizes that he neglected to include a $7,000 tax deduction. How will this ov

Alex17521 [72]

Answer:

hmhgdmthde

Explanation:

7 0

3 years ago

Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000.

ioda

Answer:

The correct answer is B.

Explanation:

Giving the following information:

The current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000.

To calculate the price index we need to make a simple division:

Price index= P1/P0

PI= 2,500/2,000= 1.25*100= 125%

3 0

2 years ago

In the context of business markets, _____ represents the fact that business buyers tend to be larger in size but fewer in number

tigry1 [53]

Answer:

concentrated demand

Explanation:

Business to business (B2B) salespeople have a very different job than regular salespeople, since every client matters and every client is VIP. B2B buyers know exactly what they want, and they will demand the best possible product at the least possible cost, specially if they are large corporations. The advantage of B2B sales is that one big sale can make a huge difference to your company and yourself. For example, companies that supply auto parts generally have only a few clients, since there are less than 10 car manufacturers in the US, but any sale involves millions of units.

7 0

3 years ago

?an officer conducting a lineup should allow the defense attorney at the lineup to do all but which of the following?

myrzilka [38]

An officer conducting a lineup should allow the defense attorney at the lineup to do all but B. control any part of the proceedings.
This is what the officer himself or herself is doing - the defense attorney is not allowed to do such a thing. However, they can passively or actively observe the proceedings, take notes, or just record the proceedings in order to revise them later on.

3 0

3 years ago