Expenses are recorded as costs of doing business whether cash was paid or not.<br> True or False

Differentiate accounts receivable from notes receivable.

maria [59]

Notes receivable are backed by a promissory note, carry interest, and have periods that can occasionally go beyond a whole business cycle. While notes receivable can be either short-term, long-term, or both depending on the repayment plan, accounts receivable are short-term current assets.

The money that clients owe your business for goods or services for which invoices have been issued is known as accounts receivable. On the balance sheet, current assets are listed as the total amount of all accounts receivable, which includes bills from clients for goods or services provided to them on credit.

Accounts receivable are a debit on a trial balance until the client pays. Once the customer has paid, you will debit your cash account and credit accounts receivable because the funds are now in your bank and are no longer owing to you. On your trial balance, the concluding balance of accounts receivable is typically a debit.

Learn more about accounts receivable here

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7 0

2 years ago

Which factors play a role in purchasing insurance? Check all that apply. the consumer’s age and current lifestyle the price of t

Hitman42 [59]

Answer: a,b,c, and e

Explanation:

4 0

3 years ago

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $81,400.

ivann1987 [24]

Answer:

$7,326

Explanation:

Double Decline Balance = 2 x SLDP x SLDBV

where,

SLDP = Straight Line Depreciation Percentage

= 100 ÷ useful life

= 100 ÷ 20

= 5 %

and

SLDBV = Straight Line Percentage Book Value

Year 1

Double Decline Balance = 2 x 5% x $81,400

= $8,140

Year 2

Double Decline Balance = 2 x 5% x ($81,400 - $8,140)

= $7,326

Therefore

The machine's second-year depreciation using the double-declining balance method is $7,326.

4 0

3 years ago

Internal controls are designed to accomplish five objectives that include compliance with legal requirements, promote operation

Ira Lisetskai [31]

Answer:

<u>Ensure accurate reliable accounting records</u>

Explanation:

Internal controls refer to those processes and procedures employed by the management of an entity so as to ensure efficient operations and to keep a check on frauds and compliance with better reporting requirements.

For example, biometric system of recording employee attendance which keeps a check as in who is actually on payroll and elimination of any dummy entries from the records.

The purpose of internal control is to safeguard assets, ensure that employees adhere by company policies, compliance with the law, promote operational efficiency and ensure reliable financial reporting without misrepresentation of facts.

3 0

3 years ago

An analysis of stockholders' equity of Hahn Corporation as of January 1, 2010, is as follows:

charle [14.2K]

Answer:

Additional paid-in capital is $904,200

Explanation:

Number of shares, issued and outstanding = 93,000 shares

Acquired 2,460 shares of its stock for $75,000.

Sold 2,000 treasury shares at $35 per share.

Sold the remaining 460 treasury shares at $20 per share.

i) Acquired 2,460 shares of its stock for $75,000.

= Treasury Stock Dr $75,000

ii) Sold 2,000 treasury shares at $35 per share.

Treasury Stock (2,000 × $35) = Dr $70,000

iii) Sold the remaining treasury shares at $20 per share.

Treasury Stock (460 × $20) = Dr $9,200

Total Treasury Stock = $75,000 - $70,000 - $9,200

= ($4,200)

Paid in Cap-tresury stock= 10,000-5000=5000

Additional Paid in capital = Paid in Capital - treasury stock

= 900,000 + 4,200 = $904,200

6 0

4 years ago

Expenses are recorded as costs of doing business whether cash was paid or not. True or False