Answer:
-The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.
-The lessor reports a single amount of lease revenue, which is equal to interest revenue plus amortization revenue, in its income statement.
-The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.
Explanation:
The mode of reporting in an operating lease is slightly different from that in a finance lease. For example, the lessor can use a straight-line form of reporting he revenue while the lessee can use a straight-line form of reporting the expense for the given term of the lease. The lessee and lessor usually report expense and revenue respectively.
<u>Answer: </u>Higher spending than taxing results in a deficit, which contributes to more debt.
<u>Explanation:</u>
Here the red bar is referred to the debt and the blue bar is referred to the spending. When the government spending is more it decreases the government revenue and creates a deficit in the funds. When there is deficit it means the government borrows funds for spending which increases the debts.
Government spending to improve the status of the economy in the country. It Invests is various activities for growth and development purpose. Only on collecting high taxes the revenue of the government will increase. When taxes collected are low the government revenue is also low.
Average citizens do profit by the exercises of the SBA since it gives benefits best to them and offers openings for work. It can likewise help their group fiscally. Some ways that the SBA can give help to a proprietor of a private company are web based preparing and monetary help.
Answer:
The budgeted cost of merchandise purchases is $527,000
Explanation:
The cost of merchandise purchases for May can be computed by first of all calculating the costs of goods sold,then by deducting closing inventory from costs of good sold and adding opening inventory,just like working backwards.
Sales $870,000
less margin($870,000*40%) ($348,000)
Cost of goods sold $522,000
Cost of goods sold =opening stock+purchases-closing stock
purchases=costs of goods sold+closing stock-opening stock
closing stock is $52000
opening stock is $47000
purchases =$522000+$52000-$47000
purchases= $527,000
