Answer:
Debit to interest expense for $4, 400
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $4,400
Notes payable A/c Dr $10,808
To Cash A/c $15,208
(Being the due payment is recorded)
For due payment, we debited the interest expense and the notes payable account and credited the cash account as cash is paid for the first annual payment due on the note
A cost incurred in the past that is not relevant to any current decision is classified as a(n): Sunk costs
This is further explained below.
<h3>What are
Sunk costs?</h3>
Generally, A cost that has already been incurred but cannot be recouped is referred to as a "sunk cost" in economics and the process of making business decisions. In contrast to sunk costs, prospective costs are future expenses that might be avoided if action is done, while sunk costs have already been incurred.
In conclusion, A cost that was incurred in the past but is not relevant to any choice that is being made at this time is considered to be a(n): Incurred expenses
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Answer:
The correct answer is option d.
Explanation:
The long-run aggregate supply curve is a vertical straight line. This is because, in the long run, the output level is not affected by price changes. Instead, output level changes with the changes in the state of technology and level of inputs. In the long run, when price level increase, the factor prices or price of inputs will increase as well. So there will be no change in output due to the change in the price level.
The vertical long-run aggregate supply curve also reflects classical dichotomy that in the long run, when all the resources will be fully employed, an increase in the aggregate demand cause the price level to rise while supply remains constant.
It also indicates that monetary policy only affect the price level, the economic output remains constant.
Answer:
E. None of the above
Explanation:
The only two accounts that you must add to net income are the amortization and depreciation
In order to reconcile net income to cash from operations the Amortization and Depreciation must be added to Net Income.
Why? because These accounts: Amortization and Depreciation are not cash accounts. This means that the figures in amortization and Depreciation are not actual outflows of cash but just a bookkeeping figure.
Answer:
The Current and Acid Test ratios help show whether a company will be able to pay of its current obligations with its current assets.
<h2>
Current Ratio:</h2>
Camero : GTO
= Current Assets / Current liabilities = 3,500 / 1,000
= 5,200 / 2,000 = 3.50
= 2.60
Torino
= Current assets / Current liabilities
= 7,410 / 3,800
= 1.95
<h2>
Acid-Test ratio </h2>
Camero
= (Current Assets - Inventory - Prepaid expenses) / Current liabilities
= (5,200 - 2,600 - 200) / 2,000
= 1.20
GTO
= (3,500 - 2,420 - 500) / 1,000
= 0.58
Torino
= (7,410 - 4,230 - 900) / 3,800
= 0.60
