Answer and Explanation:
A. Given asset turnover =5 (there's an error in the question of 5X)
Net Sales = 5 million dollars
Asset turnover is given by Net Sales/Total assets invested
Asset turnover = Net sales/total assets invested
We substitute values in the equation:
5= $5000000/total assets invested
= total assets invested=$5000000/5
Total assets invested =$1000000
Therefore to reach net sales of $5000000, there needs to be an initial investment of $1000000 not $200000
B. Given that initial investment required = $1000000
And investment available for equity now=$200000
Debt required for additional financing to reach initial investment requirement
=$1000000-$200000
=$800000 debt
Lusk Corporation produces and sells 15,500 units of Product X each month. The selling price of Product X is $25 per unit, and variable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $105,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice $43,000 $12,000 ($43,000) ($62,000)
Answer:
($62,000)
Explanation:
Calculation for the monthly financial advantage (disadvantage) for the company of eliminating this product
Keep Product X Drop Product X Difference
Sales $387,500 $0 $(387,500)
($25 per unit *15,500=$387,500)
Variable expenses $294,500 $0 $294,500
($19 per unit*15,500=$294,500)
Contribution margin $93,000 $0 $(93,000)
Fixed expenses $105,000 $74,000 $31,000
Net operating income (loss)$(12,000)$(74,000)$(62,000)
Therefore the monthly financial advantage (disadvantage) for the company of eliminating this product will be decrease in Net operating amount of ($62,000).
Type the correct answer in the box, Spell all words correctly.
What is the name given to the path goods take to go from the manufacturer to the consumer?
The path goods take to go from the manufacturer to the consumer is called the
Answer:
It's called the channel of distribution
Answer:
The answer is: Distribution channel
Explanation:
I got it right.
is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?
Answer and Explanation:
1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years
Present value of investment X= 6700* PVIF using 6%, 9 years
= $45751.34
For investment Y, given 6% discount rate, 9200 PMT, N= 5 years
Present value of investment Y =9200*PVIF using 6%, 9 years
=$38753.75
1B. Investment X from the above has higher present value
2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years
Present value of investment X
=6700*PVIF using 22% ,9 years
= $25368.11
For investment Y, given 22% discount rate, 9200 PMT, N = 5 years
Present value of investment X
=9200*PVIF using 22% ,N = 5 years
= $26345.49
2B. Investment Y from the above has higher present value.
Tyrone wants to spend $15,000 on a new car three years from now. He opens a savings account and deposits $3,250 today. One year from now, he plans to deposit $3,000 in the account, and one year after that, he plans to deposit another $3,000. If the account earns 6% interest per year, how much additional money will Tyrone need to meet his $15,000 goal?
Answer:
Tyrone will need $4578.4 to meet his $15,000 goal
Explanation:
Tyrone wants to spend amount on a new car three years from now=$15,000
Formula : [tex]A=P(1+\frac{r}{100})^n[/tex]
Where A=future value
P=present value
r=rate of interest
n=time period.
Future value of deposits=[tex]3250 \times(1.06)^3+3000 \times(1.06)^2+3000 \times (1.06)[/tex]
Future value of deposits= 10421.60
So, additional money needed=15000-10421.60=4578.4
Hence Tyrone will need $4578.4 to meet his $15,000 goal
A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)
Answer:
$2 million or $2,000,000
Explanation:
The computation of the revenue and gross profit or loss will appear in the company’s income statement in the first year is shown below:
= revenue recognized - cost incurred
The Total cost is
= $6 + $9
= $15
And, the revenue recognized is
= $6 ÷ $15 × $20
= $8
So, the gross profit is
= $8 - $6
= $2
hence, the gross profit is $2 million
An equivalent description of the holding of a receive-floating pay-fixed swap is as follows: A. An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note. B. A portfolio of long positions in forward-rate agreements (FRAs) for each swap payment date, all at the same fixed rate as the swap. C. All of the above. D. A bond that pays the fixed rate minus the floating rate each period.
Answer:
The correct answer is
A) An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.
Explanation:
Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.
Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.
It is important to note that the capital remains unmodified.
Cheers
Mills Corporation acquired as an investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management is holding the bonds in its trading portfolio. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $250 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $240 million. Required: 1. & 2. Prepare the journal entry to record Mills’ investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. Prepare the journal entry by Mills to record any fair value adjustment necessary for the year ended December 31, 2021. 4. Suppose Moody’s bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2, 2022, for $266 million. Prepare the journal entries required on the date of sale.
Answer:
Please see solution below.
Explanation:
1.
July 1, 2021
Dr Investment in bonds $225,000,000
Dr Premium on investment in bonds $25,000,000
Cr Cash $250,000,000
December 31, 2021
Dr Cash $18,000,000
Cr Interest revenue $15,000,000
Cr Premium on investments in bonds
$3,000,000
2.
Investment in bonds. $225,000,000
Premium on investment in bonds $22,000,000
3.
January 2, 2022
Dr. Cash $266,000,000
Cr Investment in bonds $225,000,000
Cr Premium on investment in bonds $22,000,000
Cr Gain on sale of investments $19,000,000
Workings:
Effective interest rate on first coupon received = [ $225,000,000 × 8%] - [ $250,000,000 × 6%]
= $18,000,000 - $15,000,000
= $3,000,000
Premium on investment in bonds = $25,000,000 - $3,000,000
= $22,000,000
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
described as
Liz responds to people who contact a company. She deals with people who visit the office in person and people who
call or e-mail the company. Her job title is best described as
Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he
can retrieve information whenever it is needed. His job title is best described as
Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his
boss. His job title is best described as
Answer:
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
described as an Executive Administrative Assistant
Liz responds to people who contact a company. She deals with people who visit the office in person and people who
call or email the company. Her job title is best described as a Receptionist
Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he
can retrieve information whenever it is needed. His job title is best described as a File Clerk.
Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his
boss. His job title is best described as an Administrative Assistant.
Explanation:
The administrative assistants, receptionists, and file clerks perform important functions. In their various capacities and roles, they help their bosses to function more efficiently and effectively by relieving them of routine tasks. As they perform these duties, their bosses are enabled to concentrate their efforts and time in managing their assigned responsibilities. However, these job titles are not universally uniform, as it depends on the organization.
Answer:
1. Executive Administrative Assistant
2. Receptionist
3. File Clerk
4. Administrative Assistant
Explanation:
Which education degree does a Guidance Counselor usually hold?
has a master's degree, but some could have a doctorate or bachelor's degree.
has a doctorate degree, but some could have a master's or bachelor's degree.
has a bachelor's degree, but some could have a master's degree.
has a master's degree, but some could have a doctorate degree.
Answer:
I would say has a bachelor's degree, but some could have a master's degree.
But from what I know I believe they need both a master's and a bachelor's degree.
Explanation:
Answer:
c / has a bachelor’s degree, but some could have a masters degree
Explanation:
The Josey Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 130,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). What are the equivalent units of production for conversion costs
Answer:
Total equivalent units= 135,000 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Conversion costs:
Units completed and transferred out= 133,000 units
Ending WIP= 10,000*0.2= 2,000 units
Total equivalent units= 135,000 units
The beginning balance in the raw materials inventory account was $25,000. During the month, the company made raw materials purchases amounting to $54,000. At the end of the month, the balance in the raw materials inventory account was $37,000. Direct labor cost was $25,000 and manufacturing overhead cost was $62,000. The beginning balance in the work in process account was $22,000 and the ending balance was $23,000. The beginning balance in the finished goods account was $44,000 and the ending balance was $50,000. Selling expense was $21,000 and administrative expense was $38,000. The prime cost for November was:
Answer:
$67,000
Explanation:
The computation of prime cost is shown below:-
Total conversion cost = Direct labor + Manufacturing overhead
= $25,000 + $62,000
= $87,000
Total prime cost = Beginning raw material + Raw material purchased - Ending raw material + Direct labor
= $25,000 + $54,000 - $37,000 + $25,000
= $67,000
hence, the prime cost is $67,000
Which statement is correct? In the short run, the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest. Pure monopolists do not always realize economic profits. Because of its ability to administer prices, the pure monopolist can increase its price and increase its volume of sales simultaneously. In the short run, the pure monopolist will charge the highest price it can get for its product.
Answer: Pure monopolists do not always realize economic profits.
Explanation:
Even though Pure Monopolies are the only sellers or makers of a good in a market and can therefore set their own prices, this does not mean that they will always make a profit talk more an economic one.
In the short run for instance, a Pure monopoly could see its average cost higher than its average revenue because some factors of production could not be varied. In this scenario, the monopolist would realize economic losses.
you can acquire an existing business for $2 million. You are uncertain about future demand. There is a 40% chance of high demand, in which case the present value of the business will be $3 million. There is a 25% chance of moderate demand, and the associated present value is $1.5 million. Finally, there is a 35% chance of low demand, in which case the present value is $1 million. Draw a decision tree for this problem. What is the expected net present value of the business
Answer:
Expected net present value of the project = $1,925,000
Explanation:
The cost of acquiring business = $2,000,000
Expected net present value of the project = High demand NPV*High demand percent + Moderate demand NPV*Moderate demand percent + Low demand NPV*Low demand percent
Expected net present value of the project = $3,000,000 *40% + $1,500,000*25% + $1,000,000*35%
Expected net present value of the project = $1,200,000 + $375,000 + $350,000
Expected net present value of the project = $1,925,000
Conclusion: The cost of acquiring business is more than expected net present value, it is advisable not to invest in the project.
Maya likes to take a lot of notes in class, but she's not always sure how to structure what she writes. She's tried different methods of taking notes, but they've all been too difficult for her. What type of notes would you recommend Maya use if she doesn't like to conform to a strict structure?
A.
concept map method
B.
outline method
C.
free-form method
D.
concept map and outline combination
B. outline method
good luck
. If a T-bill promises to repay $10,000 in one year and the market interest rate is 6 percent, how much will the bill sell for in the market?
Answer:
market price = $9,433.96
Explanation:
a T-bill is basically a zero coupon bond, and the formula we can use to calculate its market price is:
market price = face value / (1 + i)ⁿ
face value (value at maturity) = $10,000i = 6%n = 1market price = $10,000 / (1 + 6%) = $10,000 / 1.06 = $9,433.96
What are the 3 activities that took place during the forming stages
Explanation:
The three activities that took place in the forming stages are:
Team members introduce to each other, they share their backgrounds and information about their interests and experience and develop impressions towards each other. Team members come to know about each other strengths, interests, and challenges. Team members learn about the project they are doing work and they discuss the project's goals and they conceive about what contribution and role they are going to perform on the particular project.What is the profit margin for a firm with the following: dividend payout ratio of 55 percent, capital intensity ratio of 1.4, debt-equity ratio of .68, and sustainable growth rate of 6.2 percent
Answer:
2.33%
Explanation:
Capital intensity ratio=total assets /sales=1.4
debt-equity ratio=debt/equity=0.68 ( debt is 0.68 while equity is 1 since 0.68/1=0.68)
total assets=debt+equity=0.68+1=1.68
return on equity=sustainable growth rate*retention rate
sustainable growth rate=6.2%
retention rate=1-dividend payout ratio=1-55%=45%
return on equity=6.2%*45%=2.79%
Using the point formula , the return on equity formula is given below:
return on equity=profit margin*asset turnover*assets/equity
return on equity=2.79%
profit margin is the unknown
asset turnover=sales/total assets=1/Capital intensity ratio=1/1.4
assets/equity=1.68/1=1.68
2.79%=profit margin*1/1.4*1.68
2.79%=profit margin*1.20
2.79%/1.20=profit margin
profit margin=2.33%
Delta Diamonds uses a periodic inventory system. The company had five one-carat diamonds available for sale this year: one was purchased on June 1 for $800, two were purchased on July 9 for $900 each, and two were purchased on September 23 for $950 each. On December 24, it sold one of the diamonds that was purchased on July 9. Using the specific identification method, its ending inventory (after the December 24 sale) equals:
Answer: $2650
Explanation:
Using the specific identification method, its ending inventory (after the December 24 sale) will be:
Units for sale = 5 units
Units sold = 1
It should be noted that the unit that was sold was the one that was bought on July 9th.
Ending units will now be:
= $800 + ($2 × $900) + $950 - $900
= $800 + $1800 + $950 - $900
= $3550 - $900
= $2650
During April, the Meade Enterprises had the following operating results: Sales revenue $ 1,570,000 Gross margin $ 635,000 Ending work-in-process inventory $ 53,500 Beginning work-in-process inventory $ 87,000 Ending finished goods inventory $ 103,500 Beginning finished goods inventory $ 132,000 Marketing costs $ 257,000 Administrative costs $ 157,000 What is the cost of goods manufactured for April
Answer:
$906,500
Explanation:
The computation of cost of goods manufactured for April is shown below:-
Cost of goods manufactured = (Sales revenue - Gross margin) + Ending finished good - Beginning finished goods
= ($1,570,000 - $635,000) + $ 103,500 - $132,000
= $935,000 + $103,500 - $132,000
= $906,500
Hence, the correct answer is $906,500
Make way for India - the next China China grows at around 9 percent a year, but its one-child policy will start to reduce the size of China's working-age population within the next 10 years. India, by contrast, will have an increasing working-age population for another generation at least. Then answer the following questions: According to classical growth theory, restricting China's population ______ economic growth. According to new growth theory, restricting China's population growth ______ economic growth.
Answer:
The answer is "India and increases".
Explanation:
Since its working-age population is rising, India will have a higher economic growth rate, and according to traditional thinking, restricting China's people would boost economic growth.
The modernization theory includes reducing population growth in China would reduce economic growth. In India, real GDP per person has a growth of 8-1.6 = 6.4% as well as that of China is 9-0.6 = 8.4% in 2005. In India, the doubling time is 70/6.4% = 11 years or 2016 and in China, 8.33 or 2014.Look in a recent issue of The Wall Street Journal at "NYSE-Composite Transactions."a. What is the latest price of IBM stock? b. What are the annual dividend payment and the dividend yield on IBM stock? c. What would the yield be if IBM changed its yearly dividend to $1.50? d. What is the P/E on IBM stock? e. Use the P/E to calculate IBM’s earnings per share. f. Is IBM’s P/E higher or lower than that of Exxon Mobil? g. What are the possible reasons for the difference in P/E?
Answer:
A) $191.08
B) The annual dividend = $0.85 per share
dividend yield = 1.78%
C) 3.14%
D) 13.74
E) $13.91
F) IBM's P/E at 13.74 is higher than Exxon Mobil P/E at 11.29
G) The possible reasons for the difference in P/E is due to the difference in EPS earned by each company and also the difference in stock price of each company's stock
Explanation:
Referring the the recent issue of the wall street Journal at NYSE-Composite Transactions
A) The Latest price of IBM stock = $191.08
B) What are the annual dividend payment and the dividend yield on IBM stock
The annual dividend = $0.85 per share
dividend yield = 1.78%
C) calculate what the yield will become if yearly dividend is moved up to $1.50
first we find the price per share
price per share = annual dividend per share / current dividend yield
= 0.85 / 1.78% = 0.85 / 0.0178 = $47.75
since we now have the price per share value we can now calculate the dividend yield
dividend yield = annual dividend / price per share
= $1.50 / $47.75 = 0.0314
= 3.14 %
D) Calculate the P/E on IBM stock
= 13.74 times as it was traded for the last 12 months
E) calculate IBM's earnings per share using P/E
earnings per share = Price / P/E
Latest price of IBM stock = $191.08
P/E = 13.74
earnings per share = 191.08 / 13.74 = $13.91
F) IBM's P/E at 13.74 is higher than Exxon Mobil P/E at 11.29
G) The possible reasons for the difference in P/E is due to the difference in EPS earned by each company and also the difference in stock price of each company's stock
Celery Company has assets of $150,000, liabilities of $90,000, and equity of $60,000. It buys supplies for cash $5,000. What effect would this transaction have on the accounting equation?
Answer:
Assets increase by $5,000 increase, equity decrease by $5000
Explanation:
The accounting equation is expressed as below.
Assets = Liabilities + shareholders equity
Assets are valuable items that the business owns.Liabilities are the debts of the business.Shareholder equity is the owner's capital, plus the retained earnings.The transaction by Celery Company involves buying supplies valued at $5000 by cash.
Since celery paid cash, no liabilities were incurred. The shareholder money (Equity) decreased by $5000. Supplies worth $5000 were acquired. The suppliers belong to the business; they are valuable items( assets) to the business.When considering an investment, which of the following is not one of the three critical factors used to evaluate future earnings potential of that investment?
a. Global event factors.
b. Economy-wide factors.
c. Industry factors.
d. Individual company factors.
Answer:
A) Global event factor
Explanation:
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.
Sales (5,500 units) $ 192,500
Variable expenses 82,500
Contribution margin 110,000
Fixed expenses 86,500
Net operating income $ 23,500
If the company sells 5,700 units, its net operating income should be closest to:__________
Answer:
Net income= $27,500
Explanation:
Giving the following information:
Sales (5,500 units) $ 192,500
Variable expenses 82,500
Contribution margin 110,000
Fixed expenses 86,500
First, we need to calculate the unitary contribution margin:
unitary contribution margin= 110,000/5,500= $20
Now, the net operating income for 5,700 units:
Net income= 5,700*20 - 86,500
Net income= $27,500
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian ________ and the South Korean ________
Answer: GNP; GDP
Explanation:
The value of what a Canadian-owned Tim Hortons produces in South Korea is included in the Canadian GNP and the South Korean GDP.
Gross National Product refers to the total amount of domestic production and foreign production that can be attributed to the residents of a nation.
This means that GNP includes the GDP and income earned by residents of the country in other countries but less the income earned by foreigners in the country. For Canada therefore, the value of goods produced by the Canadian company in South Korea will be added to the GNP.
Gross Domestic Product (GDP) on the other hand is simply the total final value of goods and services produced in a country regardless of if it was foreigners or residents doing the production. The value of what a Canadian-owned Tim Hortons produces in South Korea is therefore included in South Korea's GDP.
The Video Privacy Protection Act was a direct result of over zealous reporters checking on the "personal viewing habits" (information privacy) of a political nominee for whom the Act was named:_______
a. Maloney Bill
b. Rutledge Bill
c. Pork Bill
d. Bork Bil
Answer:
d. Bork Bill
Explanation:
The Video Privacy Protection Act was a direct result of over zealous reporters checking on the "personal viewing habits" (information privacy) of a political nominee for whom the Act was named Bork Bill.
It was a bill passed (enacted) by the 100th Congress of the United States of America and signed into law by President Ronald Reagan on the 5th of November, 1988. The Video Privacy Protection Act (VPPA) was signed as a public law in reaction to the wrongful disclosure of the video rental records of Robert Heron Bork in a newspaper publication. Robert Heron Bork is a former Chief Judge of the court of appeal and was a Supreme Court nominee at the time when his video rental records were published by a newspaper. Therefore, due to the fact that US Congress passed (enacted) the Video Privacy Protection Act (VPPA) during the period; it was nicknamed as Bork Bill.
Competitive firms' profits are ______________ monopolistically competitive firms' profits in the long run.
Answer and Explanation:
Competitive firms' profits (economic profit) are same as monopolistically competitive firms' profits in the long run. Both competitive firms and monopolistic firms have zero profit in the long run. This is because for competitive firms, increased competition by entry of new firms creates high competition therefore infinitely homogenous divisible products hence zero economic profit in the long run. Also in monopolistically competitive firms, there is economic profit in short run but it soon becomes zero profit in the long run
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $470,000. Shipping costs totaled $14,100. Foundation work to house the centrifuge cost $7,700. An additional water line had to be run to the equipment at a cost of $2,600. Labor and testing costs totaled $7,000. Materials used up in testing cost $3,700. (Leave no cells blank. Enter 0 where needed.) a. What is the total cost of the equipment
Answer:Total Cost of equipment=$502,500
Explanation:
Total Cost of equipment= This is gotten by addition of Cost of Purchase +Shipping costs +Foundation work+ Testing expense
=$470,000+$14,100+$7,700+($7,000+$3,700.)
=$502,500
The DeVille Company reported pretax accounting income on its income statement as follows:_____.
2018 $440,000
2019 360,000
2020 430,000
2021 470,000
Included in the income of 2018 was an installment sale of property in the amount of $66,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $26,400 in 2019, $33,000 in 2020, and $6,600 in 2021. Included in the 2020 income was $28,000 interest from investments in municipal bonds. The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.
Required:
Prepare the year-end journal entries to record income texes for the year 2018-2021.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
2018
Dr Tax Expenses 132000
Cr Deferred Tax Liability (66000*30%) 19800
Cr Tax Payable (374000*30%) 112200
2019
Dr Tax Expenses 106,020
Dr Deferred Tax Liability (66000-26400)*25% 9,900
Cr Tax Payable (386400*30%) 115,920
2020
Dr Tax Expenses 100500
Dr Deferred Tax Liability (33000*25%) 8250
Cr Tax Payable (430000-28000+33000)*25% 108750
2021
Dr Tax Expenses 117750
Dr Deferred Tax Liability (5600*25%) 1400
Cr Payable (470000+6600)*25% 119150
Working
2018
Accrued Income 440000
Less: Instalment Revenue -66000
Taxable Income 374000
2019
Accrued Income 360000
Add: Instalment collection 26400
Taxable Income 386400
2020
Accrued Income 430000
Less: Interest from municipal Bonds -23000
Add: Instalment collection 28000
Taxable Income 435000
2021
Accrued Income 470000
Add: Instalment collection 6600
Taxable Income 476600
A double-entry accounting system is an accounting system: Multiple Choice That records each transaction twice. That records the effect of each transaction in at least two accounts with equal debits and credits. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. That allows total credits to be greater than total debits. That allows total debits to be greater than total credits.
Answer:
That records the effect of each transaction in at least two accounts with equal debits and credits.
Explanation:
A double-entry accounting system is the accounting system in which it shows the impact of each transaction in terms of debit and credit. In this the amount of credit should be equivalent to the amount of credit that means both the amount should be equivalent to each other
hence, the second option is correct and the same is to be considered
