Answer:
The answer is:
Asset will be overstated
Net income will be overstated
Explanation:
Because of the incorrect capitalization(the process of converting or adding to a firm's asset):
1. Assets are overstated. Assets that shouldn't are added to the entire assets are added. So it's increasing the company's asset whereas it's not.
2. Net income are overstated. Because depreciation too will have to be charged for the asset that wasn't there, therefore, net asset will be overstated.
Answer:
The correct answer is the last option: All of the above are true.
Explanation:
To begin with, the name of <em>"ISO 9000"</em> refers to a set of standards that help to any type of organization to be better at its main goal or purpose when it comes to satisfies its stakeholders' needs. Moreover, those standards focus on the control of the quality of the company and also in the management of its managers and the whole gruop of employees as well. In addition to that, it also helps the clients to know which companies are the best of the best in what they do, by having the certificate of ISO 9001 and only the companies that complete with those standards are the ones in getting it so therefore that they must have every process properly documented.
Answer:
Supplies Expense is debited for $40
Cash is credited for $89
Delivery Expense is debited for $49
Explanation:
Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is not possible to withdraw from the bank by check.
The Journal Entry will be as follow
Dr. Cr.
Supplies $40
Delivery expense $49
Cash ( $100-$11) $89
Cash will be credited against all these expenses.
Answer:
1. Grace was credited for three months taxes.
Explanation:
We need to understand proration. The buyer needs to pay for the taxes the date the property is owed to him, and the seller needs to pay for the taxes till he is having the property. Now he has paid for a year, and the year ends on October 1st. However, he is going to owe the property until Jan 1st. And hence, Grace is credited with the 3 months taxes.
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.