Answer:
They should be planned for.
Explanation:
Unexpected expenses include emergencies and other unforeseen costs that a person incurs in day to day activities. These unexpected expenses must be paid for, which means resources must come from somewhere to effect the payments.
The best way to cater to unexpected expenses is to include them in the budget. Contingencies is the term used to describe funds kept aside to settle unexpected expenses. Without a contingency arrangement, unexpected expenses will affect the budget and a person's ability to pay normal bills.
Answer:
Option D Are obligations that the company is to pay within the forthcoming year.
Explanation:
The liabilities are the obligation of the company that has arisen due to the occurence of past event and the organization is liable to pay the consideration (something that is valuable in monetary terms) to party. Their are many obligations that are not written in the financial statement which IAS 37 Provisions, Contingent Liabilities and Contingent Assets, does not permit to include in financial statement depending upon the chances of liability arising is remote or reasonably possible but not certain or probable. So the right answer is option D.
When that person spams I guess
Answer and Explanation:
The journal entry is shown below:
Cash Dr $98,800
Finance charge Dr ($120,000 × 1%) $1,200
To Liability - Financing Arrangement $100,000
(being receipts of cash is recorded)
Here cash and finance charge is debited as it increased the assets and expenses and liability is credited as it also increased the liabilities. Also, the cash & expenses contains normal debit balance and liabilities contains normal credit balance
