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3 years ago

3. Which principle in accounting allows the recognition of accounts receivable

Business

1 answer:

jeka943 years ago

8 0

Answer:

3. The principle in accounting which allows the recognition of accounts receivable and accounts payable transactions into the accounting books is the matching principle.

4. The accounting principle that is applied to determine the performance of an entity at the end of the financial period is the periodicity principle.

Explanation:

a) The matching principle ensures that revenue for a period is matched to the cost incurred in generating that revenue in that period. It is not only when revenue or costs are received or incurred that they should be accounted for. Instead, they must be accounted for whether cash has been received or paid for the transaction or not.

b) The periodicity principle ensures that the financial performance of an entity is determined periodically. This enables comparison of the performances with other segments, organizations, and industries.

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Drag the tiles to the correct boxes to complete the pairs. For each scenario match it to the correct factor describing the purpo

lord [1]

The purpose for holding money in economic in classified into:

transactional motive
precautionary motive
speculative motive

<h3>The Drop-downs includes:</h3>

When price levels rise, people hold onto cash. - Speculative motive

When interest rates are low, people forgo interest income - Speculative motive

When aggregate income is high, people hold cash to buy goods that are plentiful and cheap - Transactional motive.

When interest rates are low, people speculate that they will soon increase - Speculative motive

Andy decided to hold his money in cash, as he did not earn sufficient money as income from interest. - Speculative motive

Ben is a consumer and decides not to purchase luxury items because they are too expensive - Speculative motive

Chad thinks it to be a good opportunity to buy the products from the market as the supply has increased. - Transactional motive

Daphne is holding onto her money as she feels that the interest rate will go up soon - Speculative motive

Read more about holding motives

<em>brainly.com/question/16287958</em>

#SPJ1

7 0

2 years ago

The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11

stealth61 [152]

Answer:

The firm's cost of equity is C. 14.05 percent

Explanation:

Hi, we need to use the following formula in order to find the cost of equity of this firm.

$r(e)=rf+beta(rm-rf)$

Where:

r(e) = Cost of equity

rf = risk free rate

rm = Market rate of return

Everything should look like this.

$r(e)=0.04+1.34(0.115-0.04)=0.1405$

So, this firm´s cost of equity is 14.05%

Best of luck

6 0

3 years ago

A stationery company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cos

stich3 [128]

Answer:

The advertising spend would reduce income taxes by $2.8 million

Explanation:

The advertising expense since it is allowable expense from profits made in the year would reduce income taxes next year by $2.8 million ($8 million *35%)

This means that because of its tax deductibility,it would make a business sense to incur the advertising cost of $8 million coupled with the fact the it has the potential to increase sales revenue over and above the current level of $280 million

3 0

4 years ago

JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2

arlik [135]

Answer:

c = $71.80.

Explanation:

So, from the question above, it is given that the dividend in the first year = $1.65, the dividend in the second year = $2.54, the dividend for the third year grows at the rate of 8% and the appropriate required return for the stock = 11%.

The first thing to do here is to determine the terminal value. The terminal value can be calculated as below as;

Terminal value = [ 2.54 × ( 1 + 8/100) ÷ (11/100 - 8/100) ] = 91.44

The value of the stock today can be calculate as be as:

The value of the stock today = 1.65 / (1 + 11/100 )¹ + 1.97 / (1 + 11/100)² + 2.54 / (1 + 11/100)³ + 91.44 / (1 + 11%)³ = $71.80.

Therefore, stock should be worth $71.80 today.

7 0

3 years ago

Luis regularly reminds his team members of the purpose of their work and why they are important to the organization. he also reg

Akimi4 [234]

Answer:

Transformational leadership style.

Explanation:

Transformational leadership creates positive change in the people and environment being led, and seeks to empower followers to better themselves and ultimately become leaders too.

7 0

3 years ago