All categories

2 years ago

Describe the reason that accrued expenses often require adjusting entries but not in every situation. g

Business

1 answer:

Mkey [24]2 years ago

7 0

Answer:

Following are the solution to the given question:

Explanation:

Accrued Expenses:

The expenses accumulated were costs pending only at the conclusion of the financial day to be paid. Your financial reports would be made around an accrual basis, meaning the revenue would be booked appropriately without receiving the money. Likewise, the costs incurred during the existing fiscal year will be booked irrespective of if they're not paid.

Usually, know that such a cost is incurred only at end of the fiscal year until we have been paid.

When at the conclusion of a fiscal year we won't receive this bill, therefore the costs will have to be modified directly. In case the payment is not received.

You might be interested in

Abba, Inc. has developed the following standards for one of its products: Direct materials - 1/2 pound at $6.00 per pound Direct

Sergeu [11.5K]

Answer:

The answer is $11 per unit.

The standard cost card for this product would show a cost per unit of $11.

Explanation:

The workings are attached.

The formula used is as follows:

<u>Standard cost per unit of a product = direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit.</u>

<u></u>

6 0

3 years ago

The statement of owner's equity: Multiple Choice

QveST [7]

Answer:

E. Reports how equity changes over a period of time.

Explanation:

Statement of owner's equity as the name suggests is the statement which describes the changes in owner's equity, as it is obvious that the change cannot occur at a point of time, it will occur over a period of time.

And therefore, the statement is prepared over a period generally for a fiscal year, or a financial year.

There is no statement prepared to show any change in owner's equity at a point.

Statement reporting cash flows is called cash flow statement.

Therefore, correct option is:

Statement E

5 0

3 years ago

In a cost reconciliation schedule, costs accounted for is computed by adding the cost of the beginning work in process and the c

frozen [14]

Answer:

ending work in process and the cost of units transferred out.

Explanation:

In a cost reconciliation schedule, costs accounted for is computed by adding the cost of the ending work in process and the cost of units transferred out.

The cost reconciliation schedule gives the relationship between total costs accounted for and total costs to be accounted for.

When the total costs accounted for equal the total costs to be accounted for, this is a cost reconciliation schedule.

8 0

3 years ago

On January 1, 2020, Hage Corporation granted incentive stock options to purchase 26,000 of its common shares at $7 each. The opt

malfutka [58]

Answer:

223,250 shares

Explanation:

proceeds from the exercise of options

= 26000 × 7 = 182,000

used to repurchase common stock at market price

182,000 ÷ 8 = 22,750

shares outstanding march 31, 2021

220,000

shares to be used in cal diluted EPS;

(26,000 - 22750) + 220,000 223,250‬

No. of Shares for computing Diluted Earning per share = 223,250 shares

5 0

3 years ago

The Graber Corporation’s common stock has a beta of 1.8. If the risk-free rate is 5.8 percent and the expected return on the mar

Murljashka [212]

Answer:

16.96%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 5.8% + 1.8 × (12% - 5.8%)

= 5.8% + 1.8 × 6.2%

= 5.8% + 11.16%

= 16.96%

The (Market rate of return - Risk-free rate of return) is also called market risk premium

3 0

2 years ago