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3 years ago

What is the effect of an accrued expense (such as salaries expense) adjustment on the income statement and the balance sheet?

Business

1 answer:

CaHeK987 [17]3 years ago

7 0

Answer: A. Expenses are increased

B. Net income is reduced

E. A liability (such as salaries payable) will be increased.

Explanation:

An accrued expense is an expense that is witten when it was incurred even before it's eventually paid. e.g wages payable.

The effect of an accrued expense such as salaries expense adjustment on the income statement and the balance sheet is that there'll ba na increase in expense. Also, there'll be an increase in liability such as the salaries payable. Since there is an increase in liability, thus will bring about a reduction in the net income.

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According to federal law, an insurance company under the provisions of the Investment Company Act of 1940 must allow a variable

torisob [31]

Answer: 24 months

Explanation:

The law of the state allows for periods more than 24 months, a 2 years of conversion privilege is required by federal law.

7 0

3 years ago

2. Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan

Alona [7]

Answer:

3 years

Explanation:

The computation of the time period is shown below

Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate

$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05

$2,000 = $14,688.4 × [1-(1.05)^-n]

1-(1.05)^-n = ($2000 ÷ $14,688.4)

(1.05)^-n = 1 - ($2000 ÷ $14,688.4)

( 1 ÷ 1.05)^n = 0.86383813

Now take the log to the both sides

n × log(1 ÷ 1.05) = log0.86383813

n = log0.86383813 ÷ log (1 ÷ 1.05)

= 3 years

6 0

3 years ago

You are considering buying one of two types of health insurance, both with the same premium. You guess that in the next year the

dybincka [34]

Answer and Explanation:

The computation is shown below:

a. The expected value of payout arise from emergency is

= 0.01 × $67,500

= $675

b. The expected value of payout arise from capped coverage insuance is

= (0.9 × $500) + (0.09 × $2,500)

= $675

c. The risk averse shows the minimum exposure with respect to the swings of the income or there would be the loss in the income. Since the payout amount is same in both the cases so here we considered option B

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3 years ago

Name 3 outside financing sources

sukhopar [10]

Answer and explanation:

In the corporate world, outside or external financing resources refer to all the sources from where a business can obtain the necessary capital to handle its operations without using the firm's assets. Common examples of external financing resources are:

Venture Capitals: funding performed at an initial stage of companies after making research on the market and the company.
Term loans: provided by financial institutions that profit from the interest rate established in the loan or assets as collateral in case of payment failure.
Debt Factoring: short-term financing in which an organization sells its account receivables at a discount.

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3 years ago

Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets an

Drupady [299]

Answer:

Company A and Company B

Calculation of Goodwill on Acquisition:

= $212,433

Explanation:

a) Current market value of:

Tangible physical assets = $1,234,567

Intangible asset = $125,000

Total assets' value = $1,359,567

less Liabilities:

Operating = $160,000

Financial = 600,000 ($760,000)

Net value of assets = $599,567

Purchase Price (Company B) $812,000

Goodwill $212,433

b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.

3 0

3 years ago