Answer:
Explanation:
1. Issued common stock to investors in exchange for cash received from inventors - Increase in assets (cash) and an increase in equity (Capital)
2. Paid monthly rent - The decrease in equity and decrease in assets (cash)
3. Received cash from customers when service was rendered - Increase in assets (cash) and an increase in equity
4. Billed customers for services performed - Increase in assets (Accounts Receivable) and an increase in equity
5. Paid dividend to stockholders - The decrease in equity and decrease in assets (cash)
6.Incurred advertising expense on account - Decrease in equity and an increase in liability (Accounts Payable)
7.Received cash from customers billed in - Increase in the asset (cash) and decrease in the asset (Accounts Receivable)
8.Purchased additional equipment for cash - Increase in the asset (Equipment) and decrease in an asset (cash)
9.Purchased equipment on account - Increase in the asset (equipment) and an increase in liabilities (Accounts payable)
Answer:
Has an opportunity cost
- Having a "lazy afternoon" VS Working an 8 hour shift VS
- Cooking dinner VS Eating out
- Reading you favorite book VS Catching up with an old friend
Explanation:
Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every activity that you carry out includes the opportunity cost of not doing something else. No matter what we do, we could be doing something else.
Answer:
The correct answer is letter "C": Every January, the stock market earns above-normal returns.
Explanation:
Inside the Efficient Market Hypothesis or EMH, we can find the term "weak from efficiency" that states past price action do not influence the current stock price or it is not useful in order to predict future price movements. According to the same concept, the use of technical analysis or the suggestions of financial advisers is useless.
In that sense, option letter "C" indicates that <em>every January the stock market earns an above-normal return</em>, which clearly reflects that there is a repeated pattern in the stocks affecting their price during that specific month, something impossible to take place according to what "weak from efficiency" establishes.
Answer:
b. A deduction from net income in determining cash flows from operating activities.
Explanation:
An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.
I hope I made it clear to you. If you still have any queries, feel free to ask me.
Thanks!
Answer:
April 2
Inventory 4,600 debit
Account Payable 4,600 credit
April 3
freight-in 300 debit
cash 300 credit
April 4
account payable 600debit
Inventory 600credit
April 17
Account Payable 4,000debit (4,600 - 600)
Discount 80debit (4000 * 2%)
Cash 3,820credit
April 18
Inventory 8,500 debit
Account Payable 8,500 credit
April 21
Account Payable 1,100debit
Allowance Inventory 1,100
April 28
Account Payable 7400debit (8,500 - 1,100)
Discount 148debit (7400 * 2%)
Cash 7252credit