Answer:
b. $100,000
Explanation:
Provided information
Beginning balance of account receivable = $25,000
Collection from customers = $100,000
Ending balance of account receivable = $15,000
Since we have to find out the gross taxable income, so we considered only the collection from customers as this is the amount which is received and therefore, it has come under the gross taxable income i.e $100,000.
Complete/Correct Question:
The Bank of England is concerned that the British Pound is weakening against the U.S. Dollar. A method for the Bank of England to strengthen its currency would be to:
A. raise British interest rate levels
B. lower British interest rate levels
C. raise U.S. interest rate levels
D. lower U.S. interest rate levels
Answer:
A, raise British interest rate levels
Explanation:
Increasing the interest rate levels of the British will help strengthen the pound against the Dollar. This would mean that the United States is offering lower interest rate.
This is possible because a higher interest rate means that lenders will make higher returns compared to countries with lower interest rates.
Cheers.
Answer:
A normal good is a good whose demand increases when income increases
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
For example, if when your income was $100,000 per annum, you had one car but when it increased to $500,000, you bought two more cars. Car is a normal good
This is the result of the process:
Agency is terminated by fulfillment
Explanation:
The process that the person is hired for has been completed as they are a broker agent and their work is to make the purchase of the office building possible.
Until the building was to be purchased they had an amount of agency about them but this is not valid as soon as the work is terminated or completed.
So here, the agency is terminated by the fulfillment of the work that was assigned to the broker.
There is no work in the deal remaining to be done so the agency is taken away by default.
Answer:
c. Decrease liabilities and increase revenues
Explanation:
The correct adjusting journal entry which shall be recorded by the Duluth Co. in accounts in respect of advance income as as at December 31, is given below:
Debit Credit
Advance income(Liability) $2,000
($6,000/6*2)
Revenue $2,000
Since the liability has been debited in the above mentioned journal entry, which mean that it has been decreased and the revenue has been credited, which means that it has been increased.
So based on the above discussion, the answer is c. Decrease liabilities and increase revenues
