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3 years ago

Which of the following is the advantage of cash-based accounting?

Business

2 answers:

Katena32 [7]3 years ago

5 0

Answer:

The correct answer to the following question will be Option A (it is more accurate than accrual accounting).

Explanation:

<u>Cash-based accounting</u>

Cash accounting is a form of accounting where expenditure payments are reported during the time they are received, and expenditures are documented in the period they are paid in. In certain words, when cash is obtained and charged, the profits and expenditures are reported, respectively.
There are definite advantages for relying on the cash accounting basis for tax purposes. This accounting guarantees that taxes on money not yet collected are not paid; this increases profitability and ensures that funding is available through tax expenditures.

Therefore, Option A defines the Cash-base accounting benefit.

Alexxandr [17]3 years ago

4 0

A) it is more accurate than accrual accounting.

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An investment banker agrees to a firm commitment offering of two million shares of Ace stock. The offer price is set at $55 and

balandron [24]

Answer:

loss of $ 1,400,000.00

Explanation:

Amount of share : two million:

offer price per share: $55

selling price per share: $53.80

Loss per share: $1.20

Total loss= $1.2X2,000,000= ($2,400.000.00)

Earning from spread: 0.5x2,000,000.00 =$1,000.000.00

Net earning: (2,400,000.00)+$1,000,000.00=($ 1,400,000.00)

loss of $ 1,400,000.00

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3 years ago

Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginnin

Veronika [31]

Answer:

Overhead rate= 34.24

Explanation:

Giving the following information:

Labor-hours for the upcoming year at 38,600.

The estimated variable manufacturing overhead was $5.90.

The estimated total fixed manufacturing overhead was $1,093,924.

Overhead rate= Estimated indirect cost/allocation measure

Overhead rate=[(38600*5.90+1093924)]/38600= 34.24

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3 years ago

An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns o

Keith_Richards [23]

Answer:

$P(X$

And we can find this probability using the normal standard distribution table or excel and we got:

$P(Z$

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".

Solution to the problem

Let X the random variable that represent the expected return, and for this case we know the distribution for X is given by:

$X \sim N(11,26)$

Where $\mu=11$ and $\sigma=26$

We are interested on this probability

$P(X$

And the best way to solve this problem is using the normal standard distribution and the z score given by:

$z=\frac{x-\mu}{\sigma}$

If we apply this formula to our probability we got this:

$P(X$

And we can find this probability using the normal standard distribution table or excel and we got:

$P(Z$

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3 years ago

In the event a firm goes bankrupt, an investment grade senior debenture bond is more likely to receive liquidation proceeds than

Elina [12.6K]

The answer that best fits the blank provided above is A SUBORDINATED DEBENTURE. Subordinated debenture is also known as subordinated debt. This kind of debt that ranks just below other loans whenever the company files bankruptcy. This is what is received instead of the liquidation proceeds.

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3 years ago

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Answer:

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3 years ago