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Gekata [30.6K]
2 years ago
9

A company performs $10,000 of services and issues an invoice to the customer using the accrual method what’s the correct entry t

o record the transaction?
Business
1 answer:
guajiro [1.7K]2 years ago
6 0

Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.

<h3>Why is this the correct entry?</h3><h3 />

The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.

The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.

Find out more on accounts receivables at brainly.com/question/24871345.

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Everything else equal, an asset's value is:
Harrizon [31]

Answer:

The correct option is A, an asset's value is inversely related to the rate of return investors require to purchase it

Explanation:

The asset value is the initial purchase price determined by discounting the future cash flows from the asset to present values using a the required rate of return.

Ultimately, the higher the required return, the lower the present value of the investment whose price is being determined and the lower the discount the rate of return used in discounting relevant cash flows to present values the higher the present values.

7 0
3 years ago
Gammy Corporation provides services with a normal price of $800,000 and a trade discount of $100,000. Terms are 2/10, n/30 and t
oee [108]

Answer:

$686,000

Explanation:

net service revenue = gross revenue - discount for early payment

gross revenue = total sales price - trade discount

gross revenue = $800,000 - $100,000 = $700,000

net service revenue = $700,000 - 2%($700,000) = $700,000 - $14,000 = $686,000

4 0
3 years ago
Total transaction costs, based on the assumptions provided, are expected to be:
Jobisdone [24]

Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.

<h3 /><h3>What are the total transaction costs?</h3>

Equity financing cost:

= 5.5% x 241,350.75

= $13,274.29

Debt financing cost:

= 1.5% x 241,350.75

= $3,260.26

Other transaction costs:

= $3,000

Target debt redemption premium:

= 70,242 x 3%

= $2,107.26

The total transaction costs are:

= 13,274.29 + 3,260.26 + 3,000 + 2,107.26

= $22,002

Find out more on acquisition costs at brainly.com/question/14300655

#SPJ1

8 0
2 years ago
Frances, an executive with GMO Seed &amp; Feed, Inc., has to decide whether to market a product that could offer substantial ben
Y_Kistochka [10]

Frances must stand by his ethical standards and defer his plans to market the product.

Explanation:

Frances is stranded amidst classic case of an ethical dilemma. The ethical dilemma is an ethical perspective which puts a person in a state of to do or not. This is common and everyone undergoes through this phase for more than once in his/her lifetime.

The dilemma arises due to the substantiative profits that he can earn from marketing the product and his ethical concerns that the product is harmful for a section of the user. He needs to stick to his ethical standards and put the products to more rigorous tests and research. This would enable him to market his products in the future with some twitches and upholding his ethical concerns too.

3 0
3 years ago
In a deposits-only monetary system (people hold no currency) with a 5% required reserve ratio, a bank deposit of $1,000 will inc
liraira [26]
The reserve ratio is the portion of the money of the depositor that should be available in cash in the bank. This amount should only be in the bank and not used for all other purposes. Hence, the balance money can be used for the bank operations, increasing the supply. 

In this item, we are given that the reserve ratio is only 5%. This means that, 95% of the money can be used by the bank for its operation. This amount can be calculated by multiplying the amount deposited by the decimal equivalent of 95%. That is,
          = ($1000)(0.95)
          = $950

Therefore, the money supply will increase by $950. 
5 0
3 years ago
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