1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Solnce55 [7]
3 years ago
6

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those

revenues is:
Business
1 answer:
Talja [164]3 years ago
5 0

Answer:

Accrual basis accounting.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is accrual basis accounting.

You might be interested in
When an account is written off using the allowance method, the net accounts receivable will:_______
xxMikexx [17]

Answer:

The correct answer is a. stay the same.

Explanation:

The method of assigning accounts receivable is performed in order to stop recognizing the accounts that are considered uncollectible, that is, in which all possible resources have been exhausted and therefore no action is expected from the customer. When this method is applied, what is done is to decrease the total value of the obligation, but without affecting the total value of the net accounts receivable.

6 0
3 years ago
A company purchased $4,000 worth of merchandise. Transportation costs for the buyer were an additional $350. The company returne
Lana71 [14]

Answer:

Total cost of purchase= $3,995

Explanation:

<u>To calculate the total cost of merchandise purchased, we need to use the following structure:</u>

Invoice cost of merchandise purchase

Less:

Purchase discount

Returns and allowances

Add:

Transportation costs

<u>In this case:</u>

Invoice cost of merchandise purchase= 4,000

Purchase discount= (4,000*0.02)= (80)

Returns and allowances= (275)

Transportation costs= 350

Total cost of purchase= $3,995

6 0
3 years ago
Which of the following statements about GDP is correct? a. Nominal GDP values production at current prices, whereas real GDP val
bagirrra123 [75]

Answer:

Real GDP @ Constant Prices , Nominal GDP @ Current Prices

Explanation:

GDP is sum total of gross value of goods produced by an economy in its domestic territory during a given period of time (financial year) .

'Value' = Price X Quantity .

Nominal GDP takes current year prices to calculate GDP , Real GDP Constant (Base Year prices) to calculate GDP. So - Real GDP is a better measure of Economic Growth because it changes only due to change in 'quantity' of pr0duction (prices same) , but - Nomial GDP is a worse measure of Economic growth because it changes not only with 'quantity' of production & also with price change only (current price) .

Hence , Real GDP is also better for time series or Cross sectional Comparison .

However , Nominal GDP can be converted into Real GDP using GDP Deflator

( Nominal GDP / Real GDP ) x 100

4 0
3 years ago
Instead of attending class, one could have worked an extra hour at the café for $10 or watched a neighbor’s child for $15. the o
Lina20 [59]
The opportunity cost of attending class is the $15 that could have been made by watching a neighbor's child.
Opportunity cost refers to the benefits that one gives up in order to enjoy another benefit, that is, the benefit that is sacrificed.
In this question, two benefits are given up, but the real opportunity cost is the one that have the highest value, which is the $15.
6 0
3 years ago
For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do,
djverab [1.8K]

Answer:

The firm's output prices will increase, because will the firm can quickly adjusts the prices of goods to the new price level of 110, it will not have to do so with wages, since wages are fixed by a year contract.

This will result in comparatively lower labor costs with higher prices at the same time, which will likely result in more economic and accounting profit for the firm.

The opposite effect will be felt by workers, whose wage is not keeping up with inflation, meaning that their income is losing purchasing power.

8 0
3 years ago
Other questions:
  • An analyst needs to adjust the nominal GDP for the years 2000 and 2010 into real terms to conclude his comparison analysis. The
    13·1 answer
  • i have 44 labels on 11 sheets and 4 labels per sheet I have counted 6 packages of supplies....how many labels are there?
    13·1 answer
  • Sally was driving her own car and collided with a pickup truck. sally sustained $125,000 in injuries, and her passenger sustaine
    11·2 answers
  • Swifty Corporation manufactures widgets. Bowden Company has approached Swifty with a proposal to sell the company widgets at a p
    15·1 answer
  • Under the NASAA Statement of Policy, an agent of a broker-dealer that has discretionary authority would NOT be subject to the pr
    15·1 answer
  • Walmart is thinking about offering a 25% discount on a brand of shoes. If the elasticity of demand is two, then the discount wou
    6·1 answer
  • After deciding to buy a new car, you can either lease the car or purchase it on a four-year loan. The car you wish to buy costs
    14·1 answer
  • Use two correctly labeled side-by-side graphs of the loanable funds market in the United States and China to show how a higher i
    12·1 answer
  • Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or
    11·1 answer
  • Identify strategies to promote the development of the human resources field in business
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!