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Radda [10]
3 years ago
15

Which of the following does not correctly describe an adjusting journal entry that debits interest expense and credits interest

payable? The entry increases expenses and decreases retained earnings. The entry decreases assets and decreases stockholders' equity. The entry decreases net income and decreases stockholders' equity. The entry increases expenses and increases liabilities.
Business
1 answer:
Veseljchak [2.6K]3 years ago
8 0

Answer:

The entry decreases assets and decreases stockholders' equity. T

Explanation:

The adjusting entry of interest expense would impact the expenses account, automatically the income statement also.  

Moreover, it also impacts the stockholder equity but it does not impact the asset account. Rest item which is mentioned in the question except the corrected option would be affected.  

Interest expense is an expense that decreases the net income of the business organization and at the same time it shows the interest payable on the liabilities side.

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In declining markets: 1. the only effect advertising will have on primary demand is to slow the rate of decline.2. advertisers a
vovangra [49]

Answer: 1. The only effect advertising will have on primary demand is to slow the rate of decline.

Explanation: Declining markets are those that have gone from maturity - where sales stay flat or may even climb occasionally - to multiple periods where there are decreasing sales. This drop in sales is the first and most obvious sign of a declining market and lower sales quickly lead to other attributes.

Common characteristics of the decline stage include a decrease in sales, an increasing difficulty to make a profit, and a decrease in advertising.

7 0
3 years ago
Suppose the spot exchange rate for the Canadian dollar is Can$1.12 and the six-month forward rate is Can$1.14.
andreyandreev [35.5K]

Answer:

Explanation:

Given that:

a)

1$ = Can $1.12

It takes a value of 1 U.S dollar to have 1.12 Canadian dollars.  This signifies that the U.S dollar is worth more than Canadian dollars.

b)

Assuming that the absolute Purchasing Power Parity PPP holds,

Since 1$ = Can $1.12, the cost  in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:

= \dfrac{2.85}{1.12}

= $2.545

c)

Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.

This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.

d)

The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.

e)

Canada has higher interest rates. This determined by using the formula:

= \dfrac{(\dfrac{Fwd}{Spot }-1)}{n}

where; n= numbers of years = 6 month/12 month = 0.5 year

Then;

=\dfrac{(\dfrac{1.14}{1.12 }-1)}{0.5}

= \dfrac{(1.0178-1)}{0.5}

= \dfrac{(0.0178)}{0.5}

= 0.0356

= 3.56%

6 0
3 years ago
1. When has your level of performance been directly affected by your motivation? By your ability? By the environment?
Keith_Richards [23]

Explanation:

In this question, we can relate the three factors environment, skill and motivation as interdependent.

We can relate the performance level of motivation and skill of employees with Maslow's hierarchy of needs theory, which is defined as five fundamental human needs: physiological, security, affection, esteem and self-fulfillment. This theory is represented by a pyramid, where at the base as the most important category is the most basic needs for human beings to live, are the physiological needs. According to Maslow the category that of physiological needs is the most important for individuals, therefore in a company, if the work environment fails to satisfy basic needs for human beings, it is impossible for them to be motivated to work and develop your skills and abilities correctly.

It is necessary that all five fundamental human needs are met at each level, so that the employee develops characteristics that promote motivation and self-realization.

5 0
3 years ago
This year, he received $7,000 revenue from the tenants and incurred $4,900 rental expenses. Mr. Moyer must include $7,000 in gro
cricket20 [7]

Answer:

B. False

Explanation:

a) Data and Calculations:

The gross income from rent = $7,000

Rental expenses = $4,900

Net income from rent = $2,100

b) Rental expenses are business expenses.  They are not part of itemized deductions.  They are usually subtracted before arriving at the adjusted gross income (AGI) from which itemized deductions are then made.  Therefore, there is no requirement to itemize the rental expenses.

4 0
3 years ago
In product development, what are "specifications"?
Ivanshal [37]
I think the answer to this question is B
4 0
4 years ago
Read 2 more answers
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