All categories

3 years ago

Which of the following indicates at least two accounts are affected by a transaction?

Business

1 answer:

makvit [3.9K]3 years ago

3 0

Answer:

Double-entry system

Explanation:

The double-entry system is a book-keeping technique that records all transactions in at least two accounts. No upper boundary is set for the number of accounts that a transaction can be recorded. In double-entry accounting, each account has two columns, debit on the left and credit on the right side.

The concept of a double-entry accounting system is based on the fact that any transaction increases or decreases one side of the accounting equations and simultaneously decreases or increases the opposite side. The debit side must match the credit side for the account to balance.

You might be interested in

Incremental Analysis for Discontinuation Decision Total Contribution margin lost if special oats is discontinued Less: Fixed cos

Scilla [17]

Incremental Analysis for Discontinuation Decision can have two way affect to the Business

Explanation:

1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues

Less:

2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.

Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.

6 0

3 years ago

Would you expect bacteria to grow at the same rate for decades?

OverLord2011 [107]

It depends on many factors, mainly things like nutrient availability, temperature, moisture level, and toxin rate produced by the bacteria. can the bacteria move, or is it an enclosed space like a petri dish? but basically if we're talking about decades, bacteria will most likely not grow at the same rate in nature. in a controlled environment, the answer would be a maybe.

7 0

4 years ago

Colorado Corporation has two classes of stock: common, $3 par value; and preferred, $30 par value.Requirements1.Journalize

Alborosie

Answer:

Debit Cash/Bank 27,000 (4,500 shares x $6 per share)

Credit Common Stock 13,500 (4,500 shares x $3 per share)

Credit Paid-In Capital in Excess of Stated Value—Common 13,500 (4,500 shares x $3 per share)

Debit Cash/Bank 135,000 (4,500 shares x $30 per share)

Credit preferred Stock 135,000 (4,500 shares x $30 per share)

Explanation:

any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value—Common"

8 0

3 years ago

Boxer Corporation buys equipment in January of the current year with a seven-year class life for $15,000. The corporation expens

djyliett [7]

The deduction in the year of purchase for E&P purposes due to the acquisition and expensing of the equipment is: $3,000.

Explanation:

E&P refers to accumulated earnings and profits in accounting term. The term was commonly related with the stockholders of corporations. Accumulated earnings and profits are generally calculated by obtaining the net profit of the company after paying dividends to the stockholders.

The economic ability of the corporation can be measured through E&P. In the above scenario, the Boxer Corporation purchases equipment for $15000 with seven-year of class life. This purchase comes under the Sec.179. The deduction in the year of purchase for E&P purposes will be $3000 for Boxer Corporation.

7 0

3 years ago

Jasper Company uses the allowance method to account for bad debts. During 2018, the company recorded bad debt expense of $9,000

Llana [10]

Answer:

Decrease in Working Capital amounts to $9,000

Explanation:

Working Capital is the difference among the current assets like accounts receivable, cash and inventories and the current liabilities like the account payable of the company.

So, in this case,

Reporting the bad debts expense, the entry would be:

Bad debts expense A/c................................Dr $9,000

Allowance for bad debts A/c....................Cr $9,000

When writing of the uncollectible accounts receivable, the entry would be:

Allowance for bad debts A/c....................Dr $5,000

Accounts Receivable A/c...................Cr $5,000

Therefore, the net decrease in working capital will be computed as:

Net decrease in working capital = $9,000 + $5,000 - $5,000

Net decrease in working capital = $9,000

7 0

3 years ago