All categories

3 years ago

Which type of adjusting entry is used to record a payment a company has not yet made for a service it received?

Business

1 answer:

givi [52]3 years ago

5 0

Answer:

C. Accrued expense

Explanation:

Because the expense has already been incurred, but not yet paid, it is an accrued expense.

You might be interested in

"Consider a C corporation. The corporation earns $2.5 per share before taxes. After the corporation has paid its corresponding t

Advocard [28]

Answer:

$0.70 per stock

Explanation:

before tax corporate income = $2.50 per stock

after tax corporate income = $2.50 x (1 - 30%) = $1.75 per stock

distributed dividends = $1.75 x 50% = $0.875 per stock

since the tax rate on dividends is 20%, then the after tax gain earned by stockholders is $0.875 x (1 - 20%) = $0.70 per stock

Some dividends are taxed as long term capital gains (like these), which decreases the tax rate paid by stockholders. If they were taxed at the normal income rate, the tax rate would have been 8% higher.

4 0

3 years ago

What is the money that remains after taxes and other deductions are taken out called?

valkas [14]

Net income. The total amount of pay received is the gross income, while the net income is the remaining amount after taxes and deductions are removed.

6 0

3 years ago

Read 2 more answers

The contribution approach to the income statement:Group of answer choicesOrganizes costs on a functional basis.Shows a contribut

Pavel [41]

Answer: Is useful to managers in planning and decision making.

Explanation:

The Contribution approach to the income statement helps the company understand better the behaviour of it's variable and fixed assets because the Contribution Margin approach first subtracts variable costs from revenue and then subtracts fixed costs.

This allows the company to know which of the costs are more taxing on the company thereby enabling the company to know which to work on. It is therefore useful to managers in planning and decision making.

4 0

3 years ago

Suppose you deposit $1,633.00 into and account 9.00 years from today into an account that earns 14.00%. How much will the accoun

Vika [28.1K]

Answer:

$3144.20

Explanation:

Using the formula of Future Value FV = PV(1 + R)^N

where;

Present Value PV = $1633

Rate R = 0.14

∴

FV = $1633(1 + 0.14)^5

FV = $1633(1.14)^5

FV = $3144.20

4 0

3 years ago

Skysong Inc., a provider of consulting services, was founded on October 1, 2022. At the end of the first month of operations, th

qwelly [4]

Answer:

a. Income Statement for the month of October 2022

Revenue:

Service revenue $19,540

Expenses:

Salaries and Wages $2,800

Supplies Expenses $360

Depreciation Expenses $260

Interest Expenses $350

Total Expenses $3,770

Net Income $15,770

b. Retained earnings statement for the month of October 2022

Retained Earnings, October 1, 2020 $0

Add: Net Income $15,770

Retained Earnings, October 31, 2020 $15,770

3 0

3 years ago