Cash is an assets account. According to the rules of journal entries, an assets account is debited when it increases and it is credited when it decreases.
In the given transaction (A) on 5/8, the company has paid telephone bill of $154.32 with cash. It means the cash of $154.32 is paid and it will result in the decrease in cash by $154.32. Cash is an asset account. Hence we can say that this transaction will result in the decrease in cash by $154.32.
Hence the correct answer is:
D. Asset account, which decreases
Answer:
Beginning Balance Accounts Payable= $ 14,690
Explanation:
Ending Balance =$ 16,890
Less Purchases = $ 4500
Add payments= $ 2,300
Beginning Balance Accounts Payable = $ 14,690
Answer:
The answer is that both should be classified as current asset.
Explanation:
The asset and the liability will be classified as current assets on the firm's balance sheet.
Current assets are assets that can be converted to cash or be sold within a year. Examples are cash and cash equivalents, accounts receivable, inventory etc.
- The 270-day commercial paper is a cash-equivalent item. The maturity is 270 days which is less than 360 days(a year). This will be converted to cash in 270 days.
- The liability here is held for trading purposes and the position is short, meaning the firm has the intention of selling the security(common stock) within a year.
Answer:
Time value of money
Explanation:
The ability of money kept in a savings deposit to earn interest over time and the increase in the total interest in line with the length of time, brought us to a conclusion that <em>an amount of money to be received now, that is in the present, is worth more than the same amount if received in the future.</em>
The increase in the value of money as a result of interest earned on it, increases the value of money, this concept is what is referred to time value of money.
Answer:
account B
Explanation:
only can choose between b & C based on min balance of $300
since ATM are free for ABC ATMs, that is cheaper than Account C