TRUE. If the Fed wants to increase the money supply, it can do so by buying government bonds and if it wants to reduce the money supply it can do so by selling bonds from its account
A change from straight-line depreciation to double-declining-balance depreciation would be reported as a restatement of the prior period statements only.
The term depreciation refers to an accounting technique used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of an asset's value has been used. It allows companies to generate income from the assets they own by making payments over a period of time.
Depreciation expense is apportioned to charge a reasonable portion of the depreciation amount for each accounting period over the expected useful life of the asset. Depreciation includes the depreciation of assets with a predetermined useful life.
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Answer:
The journal entry for the cash receipt and on that the sales tax is charged is as follows:
Explanation:
Cash A/c................................Dr $8,640
To Sales A/c.............................Cr $8,000
To Sales Tax Payable A/c.....Cr $ 640
Working Note:
Sales Tax Payable = Amount of cash sales × Rate of Sales Tax
= $8,000 × 8%
= $640
So, the total of cash received will be = Sales Amount + Amount of sales tax payable
= $8,000 + $640
= $8,640
