Answer:
Consider the following explanation
Explanation:
Please note that if cash requirements are combined, mean requirement of combined entity can be simply summed up, but same is not true for standard deviation as it is not additive.
So first we need to calculate the variance by taking square of SD, then we sum it for all the location to get variance of combined entity and then we take square root again to get the SD of combined entity.
Keep in mind that we can take a simple summation of variance due to the fact that requirement in different locations are independent of each other and their correlation coefficient is = 0.
Solution is given through following image sheet -
The average (arithmetic mean) of these amounts can be found by adding all the values up, and dividing by the number of values (5).
The sum of the numbers is : 918,175.50
918,175.50 / 5 = 183,635.10
Answer: C) mutually unexecuted contracts between buyers and sellers.
Explanation:
Mutually Unexecuted contracts refer to a situation where both parties being the buyer and the seller have not executed their parts of the bargain or rather fulfilled their parts of the contract.
In such a case, even though legally, there is an obligation to perform due to the signing of a contract, Accounting wise, there is no need to record a liability.
This is why Mutually Unexecuted contracts do not contribute to the need to recognize deferred revenue.
Answer:
a $300
b $3,300
c $750
d $17,250
Explanation:
The computation is shown below:
a. Insurance expense for march month:
= Total insurance expense ÷ total number of months in a year
= $3,600 ÷ 12 months
= $300
b. Prepaid insurance
= Total insurance expense - march insurance expense
= $3,600 - $300
= $3,300
c. Rent expense for equipment for April month
= Total rent cost ÷ total number of months in two year
= $18,000 ÷ 24 months
= $750
d. Prepaid rent expense
= Total rent cost - April rent expense
= $18,000 - $750
= $17,250
