Answer:
C) $16,000.
Explanation:
cash paid for insurance premiums = total insurance expense + ending balance of prepaid insurance - beginning balance of prepaid insurance
cash paid for insurance premiums = $15,200 + $3,000 - $2,200 = $16,000
Generally when you purchase an insurance policy you can either pay every month or pay for several months in advance and get a discount. When you pay for several months in advance, you must debit prepaid insurance. Then as time passes, you must accrue insurance expense. For e.g. you pay $2,400 today for a 1 year insurance premium, and at the end of the month you will accrue $200 of insurance expense. But your cash payment was made today.
Answer:
Demand decreased and supply increased.
Explanation:
In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.
Demand and supply have also been generalized to explain macroeconomic variables in a market economy, including the quantity of total output and the general price level. The aggregate demand-aggregate supply model may be the most direct application of supply and demand to macroeconomics, but other macroeconomic models also use supply and demand. Compared to microeconomic uses of demand and supply, different (and more controversial) theoretical considerations apply to such macroeconomic counterparts as aggregate demand and aggregate supply. Demand and supply are also used in macroeconomic theory to relate money supply and money demand to interest rates, and to relate labor supply and labor demand to wage rates.
Answer: Option C
Explanation: In simple words, vouching refers to the process in which an auditor confirms that something is accurate and true as described earlier.
While performing auditing, the auditor performs the vouching function by physically counting the inventory and compare the count results with the statements that are presented by the firm to make sure that the documents are accurate.
Hence from the above we can conclude that the correct option is C.
Answer:
$280,000
Explanation:
Computation for the company’s residual income for the year
Using this formula
Residual Income=Operating income- (Average operating assets×Rate of return)
Let plug in the formula
Residual Income = $450,000 – ($1,700,000 x 10%)
Residual Income=$450,000-$170,000
Residual income=$280,000
Therefore te company’s residual income for the year will be $280,000
