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3 years ago

TRUE OR FALSE - ACCOUNTING (100 POINTS)

2 answers:

8 0

1. False - Dividends reduce retained earnings, retained earnings is an equity account
2. False - Cash is an asset and the normal sign is a debit
3. True
4. True
5. False - Cash increases, receivable decreases, total assets stays the same
6. False - GAAP requires the company be on “accrual basis” and the “matching principle” requires the expense to be recognized
7. False - Revenue recognized when earned
8. True
9. True
10. True

miv72 [106K]3 years ago

6 0

Answer:

1. False

2. False

3. True

4. True

5. False

6. False

7. False

8. True

9. True

10. True

Explanation:

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From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom

notsponge [240]

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.

The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.

Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.

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3 years ago

Kayak is a company that allows customers to efficiently search databases to find the best airline and hotel deals all over the W

maria [59]

Answer: (D) Marketing channel or channel of distribution

Explanation:

The marketing channel is one of the type of organization that perform various types of activities for purpose of transmission of the products and the services from the manufacturer to the customer or the end user.

It is also known as the distribution channel and it include the various types of business strategies for promoting the product.

According to the given question, the Kayak is one of the type of organization that publicly allow their database for the purpose of searching the best deals for the hotels or airline.

Therefore, The kayak is one of the part of marketing channel or the channel of distribution.

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4 years ago

The following is a condensed version of the comparative balance sheets for Pearl Corporation for the last two years at December

Maksim231197 [3]

Answer:

Balance Sheets

2020 2019 Deviation

$292,050 $128,700 $163,350 Cash

$163,350 Cash Flow Ind Method

$264,000 Net Income

$28,050 Depreciation

-$49,500 Dividends

$36,300 Investments

$8,250 Accounts Receivable

-$28,050 Current Liabilities

-$95,700 Property and Equipment

Explanation:

To prepare the statement of cashflow it's necessary to calculate the difference between the balance on each year.

First we need the value of the Net Income and Depreciation of the year as initial value of the cash flow ($264,000+$28,050),

then we deduct the amount of dividends paid during the year (-$49,500).

Then we begin to calculate the Assets section, everytime that the Assets are higher than the past year we have to put money

from the cash flow to compensate the assets increase and vice versa, with exception of the Cash Accounts that we are calculating.

Per Example: Accounts Receivable +$8,250 and Investments +$36,300.

Property decreased Cash flow which means that we buy some assets (-$97,500 )

Then with the Liabilities we do the same but in this case an increase in the liabilities means we have more money to our cash flow,

per example, an increase in the accounts payable means that we paid less to our suppliers so we have the money in the cash accounts.

Total Current Liabilities decrease $28,050 , we paid more liabilities than the past year, so we have to use cash.

To complete the cash flow statement it's necessary that the amount of the statement be equal to the deviation in the cash account between the past year and the current one

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4 years ago

"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid d

solmaris [256]

Answer:

Retained earning balance at the end would be = $205,000

Explanation:

Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid

The net income would increase the balance of the retained earnings hence it is added to it.

The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.

So applying this to the question, we have

Retained earning balance at the end would be:

25,000 + 200,000 - 20,000 = $205,000

Retained earning balance at the end would be = $205,000

3 0

4 years ago

West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds

finlep [7]

Answer:

9.68%

Explanation:

yield to maturity (YTM) = {coupon + [(face value - market value) / n]} / [(face value + market value) / 2]

face value = $1,000

market value = $1,000 x 0.98 = $980

n = (13 - 2) x 2 = 22

coupon = $1,000 x 0.094 x 1/2 = $47

YTM = {$47 + [($1,000 - $980) / 22]} / [($1,000 + $980) / 2] = $47.9090 / $990 = 0.4839 x 2 (annual rate) = 0.09678 = 9.68%

4 0

4 years ago