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Anna35 [415]
2 years ago
7

what is the effect on the financial statements when adjust the prepaid insurance account at year-end for insurance coverage whic

h has expire
Business
1 answer:
yan [13]2 years ago
5 0

Answer:

When prepaid insurance (or any other prepaid expense) is adjusted at year end in order to record accrued expenses, financial statements are affected in the following way:

  • income statement: costs increase, decreasing profits
  • balance sheet: assets and equity decrease
  • cash flow statement: cash from operating activities increases
  • owners' equity: decreases

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he net income of the Travis and Tucker partnership is $125,000. The partnership agreement specifies that profits and losses will
frosja888 [35]

Answer:

The balance of Tucker's Capital account at the end of the year after profits and losses have been distributed is <u>$412,500</u>

Explanation:

The capital account of a partner in a partnership is an account that shows the equity ownership of that particular partner in the partnership.

The capital of a partner in the partnership is increased by additional cash capital or asset contribution, salary, share of profit, etc., while the capital is reduced by drawing, interest on drawing, share of loss, and others.

The balance of Tucker's Capital account at the end of the year after profits and losses have been distributed can be calculated as follows:

Tucker's Capital account

<u>Particulars                                                $          </u>

Beginning balance                            325,000

Salary                                                  150,000

Share of partnership loss (w.2)      <u>   (62,500)  </u>

Ending balance                             <u>     412,500   </u>

Working:

1. Partnership profit (loss) to distribute = Net income - partners' salaries = $125,000 -  $100,000 - $150,000 = ($125,000)

2. Share of profit (loss) = ($125,000) / 2 = ($62,500)

6 0
3 years ago
The primary focus of financial statement audits is the discovery of fraud. group startstrue or false
White raven [17]

The goal of an audit of financial statements is to enable an auditor to specific an opinion as to whether or not the economic statements are prepared, in all material respects,

in accordance with International Financial Reporting Standards or another recognized financial reporting framework.

<h3>What is the primary motive of monetary statements?</h3>

This studying has presented an overview of economic statement analysis. Among the principal factors included are the following: The principal purpose of financial reports is to furnish records and records about a company's economic position and performance, consisting of profitability and cash flows.

Learn more about  financial statement audits here:

<h3>brainly.com/question/20713734</h3><h3>#SPJ4</h3>
6 0
11 months ago
A client of yours has heard about private equity investing from some wealthy friends and asks you, the registered representative
11Alexandr11 [23.1K]

Answer:

The answer is: Business Development Company (BDC)

Explanation:

Clients have two options for participating in the private equity market:

  • BDC
  • Venture Capital (VC)

The problem with a VC, is that its aimed at very wealthy customers (usually millionaires) and this specific client is not one of those.

So the only possible choice is to invest in a BDC, which are listed investment companies and trade like any other stock.

4 0
2 years ago
What type of lawsuit occurs if an employee decides to file a lawsuit against a company?
lana [24]

Answer: A. Civil case

Explanation:

  • The court cases that associate disputes between persons or businesses over funds or some incident to private rights are known as civil cases.
  • It starts by one party (business or a person) known as "plaintiff" claims to have been harmed by the actions of another party (person or business) known as the "defendant".

Hence, the lawsuit occurs if an employee decides to file a lawsuit against a company is "Civil case".

Hence, the correct option is "A".

4 0
3 years ago
Read 2 more answers
The Art of Getting the greatest benefits from limited Financial Resources is called
Inessa05 [86]
It's called living frugally. 
6 0
2 years ago
Read 2 more answers
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