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Paha777 [63]
3 years ago
12

On July 1, a company paid the $600 premium on a one-year insurance policy with benefits beginning on that date. What will be the

insurance expense on the annual income statement for the first year ended December 31?
Business
1 answer:
Schach [20]3 years ago
8 0

Answer:

$300

Explanation:

When insurance is paid in advance, the entries required are

Debit Prepaid Insurance

Credit Cash account

As time elapses and the insurance expires,

Debit Insurance expense

Credit Prepaid Insurance

Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)

= 6/12 * $600

= $300

The insurance expense on the annual income statement for the first year ended December 31 is $300.

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The efficient-market hypothesis:a) has little empirical validity. b) implies that security prices properly reflect information a
Murljashka [212]

Answer:

b) implies that security prices properly reflect information available to investors and that active traders will find it difficult to outperform a buy-and-hold strategy.

Explanation:

The efficient market hypothesis states that the price of assets in the market reflects all information that is available. This means that it is impossible to gain unfair advantage over others in the market as a result of privileged information about a transaction.

In this scenario a buy and hold strategy will be most effective because investors can buy assets and hold them for a long time regardless of short term fluctuations. Sale is made at a optimal time.

Active traders will be subject to short term fluctuations and will most likely not perform like the buy and hold traders

8 0
3 years ago
The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below
Natasha_Volkova [10]

Answer and Explanation:

The preparation of the schedule to reconcile the net income to net cash flow from operating activities is presented below:

Cash from operating activities    

Net income           $24

Adjustment to reconcile    

Add: Depreciation expense         $11.5

Add: Depletion expense         $5.4

Less: Gain on sale of Equipment      -$17.5

Add:  Loss on sale of land         $7.3

Less: increase in account receivable ($292.30 - $228) -$64.30

Add:  increase in accounts payable ($177.60 - $165)   $12.6

Add: increase in salaries payable ($29 - $24)  $5

Add: decrease In prepaid insurance ($18.7 - $14.3) $4.4

Add: Decrease in bond discount ($12.3 - $10.4)  $1.9

Add: increase in income tax payable ($24 - $12.4) $11.60

net cash flow from operating activities  $4.20

The cash outflow represents in a negative sign while the cash inflow represents in a positive sign

6 0
3 years ago
In a Real Estate Limited Partnership, the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property t
Nana76 [90]

Answer: Do your own homework

Explanation:

It’s easy

7 0
3 years ago
Once a person has been trained to operate a lift truck, they are authorized to use any type of lifting device
Dahasolnce [82]

 

The answer is FALSE; an operator is only trained to operate a narrow aisle lift truck which is indicated on the permit of OSHA that has very clear standards that employees must follow. If an operator is in need to operate a lifting device with a larger capacity or a different kind of a lifting device, an operator will need conversion training with the class of lifting truck. <span>It is not allowed to operate any lifting truck without proper training, authorized and employer certified on the specific class of lift truck. Once an operator is certified, he is responsible for the following safety procedures outlined in the training, truck manufacturers owner, operator’s manual, and company’s policies and procedures. The employer is intended to certify that each operator has been qualified and assessed as compulsory. Preceding to the employer verifying the operator: the operator must obtain classroom type training, hands on training and an assessment.  </span>

3 0
3 years ago
Apply the accounting equation to the following problem. Total assets of Charter Company equal $700,000, and its equity is $420,0
natulia [17]

Answer:

The amount of its liabilities is 280000

Explanation:

In a business balance we can see the following accounting equation

liabilities + owners' equity= assets

liabilities = assets -owners' equity

liabilities = $700,000-$420,000

liabilities = $280,000

6 0
3 years ago
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