Answer:
Check the following consideration
Explanation:
Since the business owner follows cash basis of accounting the treatment is amount expensed during the financial year can be shown as expenses. hence in the current case rent for 18months can be shown as expenses for that financial year and it can be shown as a deduction while computing tax liability.
Answer:
a. $8,200
Explanation:
The same accounting principles would be applied to non-profit entities while recording their assets as applied to other entities.
Non-profit entity would record its assets at fair value same as assets are recorded by other entities.
Answer:
The answer is:
The inventory loss should be recorded entirely in the second quarter that ends in 6/30/2015 since losses have to be recorded as soon as the company recognizes them. The other quarters should not reflect any of the losses associated with this event.
Explanation:
The accrual accounting principle states that accounting transactions have to be recorded in the period when they actually happen. The conservatism principle states that liabilities and losses have to be recorded as soon as they are recognized.
Answer:
tax increased = $22.22 billion
so correct option is 3. increase taxes by $22.22 billion.
Explanation:
given data
real GDP = $500 billion
employment GDP = $300 billion
marginal propensity = 0.9
solution
we know here that Inflationary gap will be
Inflationary gap = Real GDP - Full-employment GDP
Inflationary gap = $(500 - 300) billion
Inflationary gap = $200 billion
and tax Multiplier is
Tax Multiplier = 
Tax Multiplier = -9
here negative sign means that decrease real GDP by $9
so tax should be increased by $1
so we can say that decrease real GDP by $200 billion
and tax should be increased = 
tax increased = $22.22 billion
so correct option is 3. increase taxes by $22.22 billion.
Answer:
B) the issuance of bonds.
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
As such, the sale of additional shares of stock, net income and declaration of dividend are typical reasons for changes in shareholder's equity however, the issuance of bonds is a liability (usually non-current).
