Answer:
S/N ACCOUNT DEBIT CREDIT
1 Equipment $22,000
Cash $22,000
Being payment for new component expected to increase the
equipment’s productivity by 10% a year
2. Equipment Repairs expenses $6,250
Cash $6,250
Being payment for equipment repair
3. Equipment $14,870
Cash $14,870
Being payment for equipment repair to prolong the useful life
the asset
Explanation:
The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.
Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.
The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.
The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.
The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.
As with most things, market research has certain trends that come and go over time. Identify at least two market research trends, past or present, and explain the limitations of these trends.Question
Directions and Analysis Task 1: Defining Entrepreneurship Before deciding on a business. you determine that you need to know more about entrepreneurship Describe entrepreneurship. How is it different than working for someone else? How does entrepreneurship affect you? How does it affect the economy? Type your response here: Task 2: Latest Trends in Entrepreneurship Conduct online research to find out some of the latest trends in entrepreneurship. Describe five such trends in brief.
Answer:
culture
Explanation:
culture: it is combination of values and moral that someone inherit from their forefather. it has very firm effects on decision making process. culture factors like occupation, economic background of consumer and lifestyle etc affect the decision of consumer. it is the value that passes from one generation to another.
culture is that stiff part of one life that cannot be change with time and more or less on the basis this consumer change its decision.
Cash flows from investing do not include cash flows from : Borrowing.
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Explanation:</u></h3>
The cash flows either inward or outward of any company refers to the Cash flow from investing activities. The long term usage of cash will be considered under this. The investing activities includes the following such as purchasing a fixed asset, selling a fixed asset. These assets includes any property, plants, equipment,etc.
The cash flows are associated with the generation or spending of amount in the investing activities. This is a section that is included in the cash flow statement of an organisation. Thus, the cash flows for investing activities will not include the cash flows from Borrowing.
Answer:
The correct answer is letter "C": Interest rates tend rise during economic expansion and decline during recessions.
Explanation:
The expansion is the period of the economy that represents grow. Because of the prosperity atmosphere, people and businessmen request loans frequently pushing central banks and governmental entities to raise the interest rates to slow down the economy to prevent a recession. The recession itself is the period where the economy is contracted or reduced. In this case, the central banks and governmental entities decrease the interest rates to stimuli economy through loans and purchases.
