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3 years ago

What is the role of accounting in financial management

Business

1 answer:

astraxan [27]3 years ago

7 0

Answer:

Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management,

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Knoll Company started Year 2 with a $500 balance in its Cash account, a $500 balance in its Supplies account and a $1,000 balanc

Law Incorporation [45]

Answer:Please refer to the explanation section

Explanation:

The questions is incomplete, the events that were experienced by the company during the two year are missing in the question. we will assume these events took place in order to illustrate through journal entries how transactions and events affect the account balances mentioned in the question.

1. Knoll Company issued 100 shares at a price of $5 per share.

2. Knoll Company purchased supplies costing $250 cash

3 Knoll Company Purchased inventory costing $ 600 cash

journal entries

Dr Bank 500

Cr Shareholders equity 500

Dr Supplies 250

Cr Bank 250

Dr Inventory 300

Cr Bank 300

Balances at the end of year 2

Cash Account = 500 + 500 - 250 - 300 = $450

Supplies = 500 + 250 = $750

Equity = 1000 + 500 = $1500

5 0

3 years ago

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave

Inessa05 [86]

Answer:

Answer is option b i.e. Discharged.

Explanation:

Discharge of a contract takes place either on completion of a contract or when a contract is terminated due to various reasons like; discharge by mutual agreement, discharge by the impossibility of performance, discharge of contract due to lapse of time, discharge by operation of law, and discharge by breach of contract. Here, in the given case, the contract between Clyde and Deephole Excavation Inc. is discharged by the operation of law as the court has ordered to halt the digging further.

5 0

3 years ago

Bermuda Triangle Corporation (BTC) currently has 520,000 shares of stock outstanding that sell for $85 per share. Assume no mark

Vedmedyk [2.9K]

Answer:

a. BTC has a five-for-three stock split.

new number of shares outstanding = (520,000 / 3) x 5 = 866,666.67 ≈ 866,667

new market price per stock = ($85 / 5) x 3 = $51

b. BTC has a 12 percent stock dividend.

new number of shares outstanding = 520,000 x 1.12 = 585,400

new market price per stock = $85 / 1.12 = $75.89

c. BTC has a 43.5 percent stock dividend.

new number of shares outstanding = 520,000 x 1.435 = 746,200

new market price per stock = $85 / 1.435 = $59.23

d. BTC has a four-for-seven reverse stock split.

new number of shares outstanding = (520,000 / 7) x 4 = 297,142.86 ≈ 297,413

new market price per stock = ($85 / 4) x 7 = $148.75

6 0

3 years ago

Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________

bonufazy [111]

Answer:

The correct answers that fills the gap are: an increase; an increase.

Explanation:

Real GDP is based on one-year prices and allows a comparison of the production of a given country in different periods of time, by isolating changes in prices, perfectly reflecting net purchasing power, regardless of changes in Prices over time.

3 0

3 years ago

The Polozzi Trust projects that it will incur the following items in the next year, which will be its first year of existence.

kolbaska11 [484]

Answer:

a. $165,000

b. -$29,500

Explanation:

a. If the allocation takes place, Shirley's income will include both the interest and rent incomes as well as the capital gains:

= Interest income + Rent income + Capital gain income

= 25,000 + 100,000 + 40,000

= $165,000

b. If the allocation happens according to what Betty suggests, Shirley would receive:

= Interest income / 2 - Cost of recovery expenses - Fiduciary admin fees

= 25,000 / 2 - 35,000 - 7,000

= -$29,500

8 0

3 years ago