Answer:
False
Explanation:
The growth of 4% for 25 years would nominally signify a 100% increase and you might think that the economy has double its size. But you must take into account that’s this is a compound growth then the economy would reach the double of its size before 25 years.
Think that he initial size of the economy is 10 and it grows 4% then an annual growth will be 10,4 now the compound grow is adding up 0,4 to the initial size of 10. Then you recalculate a growth of 4% for the second year this means 10.816 grow.
If you notice the extra 0.016 increase for the second year is the effect of calculating the 4% increase based on the previous size 10 plus 0.4.
Answer:
The answer is D. Accounted for in current and future periods.
Explanation:
A change in accounting estimate is an adjustment of the carrying value of an asset or liability arising from reassessing the expected future economic benefits and obligations associated with that asset or liability.
Changes in accounting estimates must be shown in the accounting period in which the estimates are revised and periods after i.e accounted for prospectively. Example is a change in useful life and salvage value of a fixed asset
Answer:
B) Durable
<u>Multiple-choices</u>
A) Portable B) Durable
C) Divisible
D) Acceptable
Explanation:
Durability is a vital feature of money. It refers to the ability of money to be used over and over again. Durability implies that money should withstand wear and tear for a long duration. Because money is meant to circulate without limitations, it should be made to last for a considerable period. Printing of money is an expense. To save on this cost, both notes and coins should be made durable.
Answer:
The correct answer is: False
Explanation:
Answer:
$6,400
Explanation:
Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.
Supplies account is an asset account and has normal balance as debit balance. It increases with the purchase and decreases with the use of supplies.
Given:
Supplies (beginning) = $4,400
Purchased (supplies) = $2,400
Supplies (ending) = $400
Let supplies expense be x.
Now,
Supplies (ending) = Supplies (beginning) + Purchased (supplies) - Supplies expense
$400 = $4,400 + $2,400 - x
$400 = $6,800 - x
x = $6,800 - $400
Supplies expense = x = $6,400