Answer:
1) expense recognition principle: expenses are recognized when they are consumed.
2) historical cost principle: a company must record its assets, liabilities, and equity investments at their original costs.
3) economic entity principle: the company's transactions should be kept separate from those of its owners or upper management.
Gabby is in the stage of INFORMATION SEARCH of the consumer decision process.
Consumer decision process is the decision making process that is used by the consumers to make market transactions before, during and after the purchase of a good or service. Consumer decision process is divided into 5 stages, which are: problem identification, information search, evaluation of alternatives, purchase decisions and post purchase decisions.
The effect on the accounting equation will be Liabilities and assets decrease.
In economic accounting, a liability is described because of the future sacrifices of monetary advantages that the entity is obliged to make to other entities due to past transactions or other beyond events.
A liability is something a person or company owes, commonly a sum of money. Liabilities are settled over the years via the switch of economic blessings which include cash, goods, or offerings.
There are three primary classifications for liabilities. they're current liabilities, long-term liabilities, and contingent liabilities. Contemporary and lengthy-time period liabilities are going to be the most commonplace ones which you see for your enterprise.
Learn more about liability here brainly.com/question/25687338
#SPJ4
Answer:
$600
Explanation:
The reason is that the recognition of the interest expense is split between two accounting periods. In the first accounting period the interest expense recognized will be for 3 months as the period from inception (October 1, 2018) to the end of year (December 31, 2018) is 3 months.
This means that:
Interest Expense = $10,000 * 8% * 3/12 = $200
So this will be recognized in the first accounting period ending at December 31, 2018. The interest expense of 9 months falls in the secong accounting period, which means the interest expense for the second accounting period will be:
Interest Expense = $10,000 * 8% * 9/12 = $600
Answer:SID THE SCIENCE KID
Explanation:
