Thinking summarizes the operating, financing and investing activities of an entity
Answer: A reversing entry: <em><u>"is the exact opposite of an adjusting entry made in a previous period.".</u></em>
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Explanation: Reversion entries are an end-of-the-year technique that involves the reversal, on the first day of the new accounting period, of those end-of-year adjustment entries that cause expenses or income and therefore will result in payments or cash receipts. Its purpose is to allow company personnel to record routine transactions in a standard manner without referring to previous adjustment entries.
Answer:
$235,000
Explanation:
A company can capitalize the cost of assets, delivery cost, legal & documentation charge and any other directly attributable cost that is incurred to bring the asset in the condition as intended by management.
Therefore, cost of asset, title fee and building modification fee shall be added in the cost of asset as follows:
Cost of Asset 200,000
Lawyer and title fee 20,000
Building Accommodation <u> 15,000</u>
Total <u>235,000</u>
Answer:
d There are gains from trade.
Explanation:
A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).
Thus, trade creates an enabling environment that suits a specific service provider or producer of a particular product.
Basically, the interaction of individual choices underlies the fact that there are gains from trade.
This ultimately implies that, as a result of the difference between human needs and wants, there is always an opportunity for various producers to manufacture goods and services to meet the needs or requirements of these customers.
