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3 years ago

According to the basic double entry principle of accounting, we

Business

1 answer:

Vlad1618 [11]3 years ago

8 0

Answer:

D. Any of the above, depending on the transactions

Explanation:

The double entry principle simply means that any accounting transaction has two records: one credit, and one debit, and it depends on the nature of the transaction, and of the accounts involved which specific value is credited and which one is debited.

For example, if a firm purchases 100$ of office supplies with cash, the credited account is cash, because cash is reduced by $100, while the office supplies account is debited by the same value.

If a firm sells 100$ of office supplies instead, the office supplies inventory is credited for this value, while the same amount of cash is debited for this same amount.

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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000, and it h

Vladimir [108]

Answer:

purchase price $60,000

estimated useful life 14 years

residual value $12,000

depreciation expense using straight line method:

using straight line = ($60,000 - $12,000) / 14 = $3,428.57

depreciation during year 3 = $3,428.57

book value at end of year 5 = $60,000 - ($3,428.57 x 5) = $42,857.15

depreciation expense using SL method and 200% DB method with switchover to SL:

year 1 = $60,000 x 2 x 1/14 = $8,571.43

year 2 = $51,428.57 x 2 x 1/14 = $7,346.94

year 3 = $44,081.63 x 2 x 1/14 = $6,297.38

year 4 = $37,784.25 x 2 x 1/14 = $5,397.75

year 5 = $32,386.50 x 2 x 1/14 = $4,626.64

book value at end of year 5 = $27,759.86

Since the depreciation expense using double balance with switchover to straight line is higher during the first years, then the company should use that method. One extra dollar in depreciation expense = one less dollar in taxable income. It is usually better pay less taxes today than tomorrow.

3 0

3 years ago

Which of the following statements would come from someone classified as unemployed? Question 25 options: I can't stand my curren

alexdok [17]

Answer:

I'm not working. I had three interviews this week, and I'm trying to find a job.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Natural Rate of Unemployment (NU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Cyclical unemployment rate (CU).

The statement which would come from someone classified as unemployed is; I'm not working. I had three interviews this week, and I'm trying to find a job.

7 0

3 years ago

Which of the following are arguments in favor of active stabilization policy by the government? check all that apply. changes in

balandron [24]

Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses is an <span>argument in favor of active stabilization policy by the government. The active stabilization policy measured to help introduce a way to stabilize an economy. There are many ways to achieve this but two distinct ways to follow.

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4 0

3 years ago

Read 2 more answers

Will the managers be able to make informed decisions in woolworth ?

Serjik [45]

There is a high amount of possibility that the managers at Woolworth will be able to make informed decisions, if the team involved in decision-making thinks rationally, and in the best interest of the company.

<h3>What is an informed decision?</h3>

An informed decision can be referred to or considered as a decision that is taken by keeping important factors in mind while arriving at a decision, and also managing the core functions with an intention of growth.

In the condition given above, the managers will be able to make informed decisions only if their mindset towards the company is rational, and such decision is in the best interest of the company.

Therefore, the significance regarding an informed decision has been aforementioned.

Learn more about informed decision here:

brainly.com/question/28198869

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5 0

1 year ago

Is it possible for a country to have a comparative advantage in producing a good without also having an absolute advantage? A c

arlik [135]

A country would have a comparative advantage to produce a good if the cost of producing this good, even if it produces efficiently, is higher than that of other countries.

Explanation:

The Competitive Vantage Principle explains how an individual produces more commodities and uses fewer goods with a comparative advantage under freer trade.

For example, the comparative advantage of oil-producing countries in chemical products. Compared to countries that are not there, the local manufactured oil is a cheap source of chemicals.

It can produce products with fewer resources, which offers countries a comparative advantage at lower incentive costs. The PPF's gradient reflects the cost of output capacity. Improving one good's production means producing less of one.

8 0

3 years ago