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Debora [2.8K]
3 years ago
15

Adam elects the accrual method of accounting for his business.

Business
1 answer:
In-s [12.5K]3 years ago
8 0

Answer:

The accrual method is an accounting concept which says income and expense shall be recognized in the Accounting period they occurred and not necessarily when cash was received or paid for them.

Therefore, if I sell a piece of item in this year on credit, even when at year end the payment is still outstanding. Accrual concept expects me to recognize a sales. The same applies to expenses, even when payment haven't been made, a provision should be made for liability while the expense is recognized in the income statement.

A. In Oct year 0 Adam agrees to a liability of $3,550 although payment shall be paid in January Year 1.

Based on Accrual concept. Adam will recognize product returns (deduction in sales) in Year Zero and because he hasn't paid cash as at year end, he will also state his liability in the current liability of his balance sheet

B. Adams paid $960 for a 1 year contract for office cleaning.

Although cash has left the business, only a forth of this payment is due in this financial year. Thus Adams will recognize an expense of $240 in Year 0 and post in his Prepaid Expense account (Current Asset of the Balance sheet) an Asset of $720 owed him by the cleaning agency

C. $465 was levied Adam as annual property taxes because of his delivery van.

Although Adam considers immaterial, and he didn't make a payment until Year 1; the rules of Accrual concept won't be discarded.

In year zero he will recognize the $465 has an expense in his income statement because it is applicable to year zero; but because he differed payment to Year 1 he also must recognize a liability to the state for the amount due in his current liability side of the Balance sheet.

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D. Physiological.

Explanation:

Physiological Needs are the establishment of Maslow's hierarchy of needs and incorporate survival needs such as the requirement for sleep, nourishment, air, and proliferation. Physiological needs are the requirements we as a whole need separately for human survival.

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The product of 59,736 and 600 is
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Answer:

D

Explanation:

59763*600=35,841,600

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3 years ago
For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explai
ioda

Answer:

a. Hulu and Netflix.

Positive. They are close substitutes

Hulu and Netflix both provides television shows, so a consumer can choose between them. They are good substitutes

b. Tortilla chips and salsa.

Negative. They are complements.

Tortilla chips are consumed with salsa sauce. So a demand for salsa increases so does demand for tortilla chips.

c. Movie and popcorn.

Negative. They are complements.

The more people watch movies the more they will want to buy popcorn.

d. Running shoes and high heels

Close to zero. While they are substitutes they are not close substitutes.

Each has its own time of use. Consumers by them independently.

Explanation:

Cross price elasticity is a measure of the quantity demanded of one good to changes in price of another good.

So when a good's demand reduces with increase in price of another it is negative cross price elasticity. This is common with complements.

When quantity demanded of a good increases with increase in price of another, they are substitutes.

However when there is little effect on the quantity demanded with increase in price of the other good they are unrelated

4 0
4 years ago
Howard's bank gave him a personal loan because they found him creditworthy. Which type of loan did Howard get?
Andreyy89
The correct answer to this question is this one: "Secured Loan."
Howard's bank gave him a personal loan because they found him creditworthy. The type of loan that Howard should get is secured loan.
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3 years ago
Read 2 more answers
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead cos
Tju [1.3M]

Answer:

\left[\begin{array}{cccc}-&Actual&Variance&Flexible Budget\\Indirect labor&10,760&240F&11,000\\Indirect Materials&7,520&180F&7,700\\Utilities&3,950&450F&4,400\\Supervision&4,200&0&4,200\\dep&1,800&0&1,800\\Prop.taxes&600&0&600\\\end{array}\right]

Explanation:

Idirect labor 1

Indirect materials 0.7

Utilities 0.4

fixed per month

supervision 4,200

Dep 1,800

property taxes 600

Units produced

We multiply the variable components rate by the units produced. Then we calcualte the variances

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