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3 years ago

List A

Business

1 answer:

Sladkaya [172]3 years ago

4 0

Answer:

1. Distribution to owners.

2. Cost effectiveness.

3. Comparability.

4. Consistency.

5. Understandability.

6. Faithful Representation.

7. Timeliness.

8. Relevance.

9. Verifiability.

10. Confirmatory Value.

11. Comprehensive income.

12. Recognition.

13. Neutrality.

14. Gain.

15. Predictive value.

16. Materiality.

Explanation:

The following are terminologies used in the field of accounting or banking and finance;

a. Distribution to owners: Decreases in equity resulting from transfers to owners.

b. Cost effectiveness: Requires consideration of the costs and value of information.

c. Comparability: Important for making interfirm comparisons.

d. Consistency: Applying the same accounting practices over time.

e. Understandability: Users understand the information in the context of the decision being made.

f. Faithful Representation: Agreement between a measure and the phenomenon it purports to represent.

g. Timeliness: Information is available prior to the decision.

h. Relevance: Pertinent to the decision at hand.

i. Verifiability: Implies consensus among different measurers.

J. Confirmatory Value: Information confirms expectations.

k. Comprehensive Income: The change in equity from nonowner transactions.

l. Recognition: The process of admitting information into financial statements.

m. Neutrality: The absence of bias.

n. Gain: Results if an asset is sold for more than its book value.

o. Predictive value: Information is useful in predicting the future.

p. Materiality: Concerns the relative size of an item and its effect on decisions.

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Assume the following: Pre-tax return = 14.5% Tax rate = 25% Inflation rate = 4% What is your real return?

Colt1911 [192]

Answer:

6.875%

Explanation:

In order to compute the real return, first, we have to determine the after-tax return which is shown below:

After-tax return = Pre-tax return - tax rate of Pre-tax return

= 14.5% - 25% × 14.5%

= 14.5% - 3.625%

= 10.875%

And, the inflation rate is 4%

So, the real return would be

= 10.875% - 4%

= 6.875%

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3 years ago

Park Corporation is planning to issue bonds with a face value of $2,002,000 and a coupon rate of 10 percent. The bonds mature in

andrezito [222]

Answer:

1. Dr Cash $2,253,934

Cr Bonds Payable $2,253,934

2. Dr Interest Expense $96,919

Dr Bonds payable $3,181

Cr Cash $100,100

3. $2,250,753

Explanation:

1. Preparation of the journal entry to record the issuance of the bonds.

January 1

Dr Cash $2,253,934

Cr Bonds Payable $2,253,934

(To record the issuance of the bonds)

2. Preparation of the journal entry to record the interest payment on June 30 of this year.

June 30

Dr Interest Expense $96,919

Dr Bonds payable $3,181

($100,100-$96,919)

Cr Cash $100,100

(To record the interest payment)

Workings:

$2,002,000 × 0.28689 = $574,354

$100,100* × 16.77902 = 1,679,580

Issue price = $2,253,934

Interest: $2,002,000 × .10 × 1/2 = $100,100

June 30:

Interest Expense: $2,253,934 × .0430 = $96,919

3. Calculation to determine what bonds payable amount will Park report on its June 30 balance sheet

Park Corporation Balance sheet (Partial) June 30

Long term Liabilities:

Bonds payable $2,250,753

($2,253,934-$3,181)

Therefore the bonds payable amount Park will report on its June 30 balance sheet is $2,250,753

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3 years ago

In monopoly how do you unmorgage a property

pashok25 [27]

If at a later time, you unmortgage the property, you still have to pay the mortgage value plus the 10% interest. As an example: Boardwalk is mortgaged, mortgage value is $200. If you are the new owner, you must pay $220, this unmortgages the property.

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3 years ago

The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the mem

SashulF [63]

Answer:

c. $180 in 2019

Explanation:

The company uses the accrual method of accounting. Under the method, revenues are reported on the income statement when they are earned, regardless of when the money is actually received or paid.

On July 1, 2017, the company sold a one-year membership and a two-year membership. In 2017, The Maroon & Orange Gym, Inc. has provided service for 6 months of each contracts.

Gross income of one-year membership in 2017 = $40 x 6 = $240

Gross income of one-year membership in 2017 = $30 x 6 = $180

Total income = $240 + $180 = $420

In 2018, the company continued to provide service for 6 months remaining of one-year membership and 12 months remaining of two-year membership.

Gross income of one-year membership in 2018 = $40 x 6 = $240

Gross income of one-year membership in 2018 = $30 x 12= $360

Total income = $240 + $360 = $600

In 2019, the company completed providing service for 6 months remaining of two-year membership.

Gross income in 2019 = $30 x 6= $180

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3 years ago

If you purchase health insurance from a federal- or state-facilitated health insurance marketplace, then you are eligible for a

Sliva [168]

Answer:

credit.

Explanation:

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A tax incentive can be defined as benefits such as deductions, exclusions or exemptions given by the government to individuals or businesses so as to motivate them to save or spend money by reducing their tax rates i.e the amount of money to be paid as tax.

In the United States of America, if an individual or a patient purchase health insurance from a federal- or state-facilitated (sponsored) health insurance marketplace, then he or she is eligible for a premium tax credit payable by the internal revenue service (IRS).

This ultimately implies that, a premium tax credit is a refundable tax credit and it reduces the amount of money an individual or household would pay for his or her monthly health insurance payments when purchased through the health insurance marketplace.

An example is the Affordable Care Act (ACA) which was formally known as the Patient Protection and Affordable Care Act (Obamacare). It is a federal statute of the United States of America which was enacted by the 111th US Congress and signed into law by President Barack Obama. The Affordable Care Act (ACA) became effective on the 23rd of March, 2010 and it focused on making affordable health insurance available to qualified people or households through cost-sharing reductions and premium tax credits (subsidies).

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3 years ago