Answer:
A) Accrual principle
B) Cost principle
C) Economic entity principle
Explanation:
Accrual principle: indicates that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them.
Cost principle: according to this concept, a business should only record its assets, liabilities, and equity investments at their original purchase costs.
Economic entity principle: implies that the transactions of a business should be kept separate from those of its owners and other businesses.
Answer:
the size of M1 can only be a fraction of checkable deposits.
Explanation:
fractional reserve banking system requires that a fraction banks receive as deposits from customers be kept as reserves with the central bank and the rest be made out as loans.
M1 consists of coins, demand deposits and currency in circulation. Banks determine the money in circulation by giving out loans. so the size of M1 can only be a fraction of checkable deposits.
Answer:
(D) Investment income of $99,000 in its income statement.
Explanation:
As Smith buys and sells securities, so the gains arising from the sale of securitiesand share will be reported as Investment Income in the income statement. All the stocks that purchased for trading purpose are reporting on fair market value and all the gains and losses are recorded. The Gain of $99,000 arising from the fair market value adjustment will be reported to income statement.
Answer:
Answer is D
Explanation:
d. Construct a 95% confidence interval estimate of the population proportion of the users of this allergy drug who experience drowsiness.