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Nostrana [21]
3 years ago
7

Consider the following transactions: The company uses supplies purchased in the previous period, $1,500.The company pays cash fo

r rent in advance, $6,000.The company repays a loan to the bank, $10,000 (ignore any interest cost).The amount of accrual-basis expense is _____ while the amount of cash-basis expense is _____.
Business
1 answer:
Step2247 [10]3 years ago
8 0

Answer:

Accrual basis expense is $1,500

Cash basis expense is $6,000

Explanation:

A company that follows accrual basis records expenses when it is incurred irrespective of when it is paid.

The company utilizes supplies in the current period that was purchased in the previous period. So, it will be recorded in the current period as accrual basis expense of $1,500.

Rent paid in advance is a liability for company following accrual basis, so it is not an accrual basis expense. It is a cash basis expense as an expense is recorded when cash is paid under cash basis.

So, cash basis expense is $6,000.

Loan amount repaid is a liability in both cases. So, liability is reduced by $10,000. It is not an expense. Only interest amount is expensed.

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B. The costs that are incurred during the production of a good or service are usually divided into three categories, which are direct material, direct labour and overhead costs.
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5 0
3 years ago
a system has two processes and three identical resources. each process needs a maximum of two resources. is deadlock possible? e
Naddik [55]

A system has two processes and three identical resources. each process needs a maximum of two resources.---<u> Deadlock is not possible</u>.

<h3>What's deadlock explain?</h3>

A deadlock is a situation in which two computer programs participating the same resource are effectively precluding each other from penetrating the resource, performing in both programs ending to serve. The foremost computer operating systems ran only one program at a time.

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Deadlock is a situation where a set of processes are blocked because each process is holding a resource and staying for another resource acquired by some other process

Learn more about deadlock:

brainly.com/question/25541016

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11 months ago
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3 years ago
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Breezy Company is disposing of equipment that was originally purchased for $550,000 and has $145,000 of accumulated depreciation
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Answer:

$405,000

Explanation:

The calculation of total amount is shown below:-

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