What is the significance of the timing in which cash is paid or received as it relates to the adjusting process?
Cash paid before an expense is incurred results in a deferred expense, which is recognized as an asset on the balance sheet. The adjusting entry reduces the asset and recognizes a corresponding amount of expense. Cash received before revenue is earned requires the recognition of a liability, a deferred revenue. The adjusting entry reduces the liability and recognizes a corresponding amount of revenue. At the end of the period, if cash has not been paid or received, amounts must be accrued for any assets expected to be received and the related revenue, or any liabilities owed and the related expenses.
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Determine the March 2014 residual income for an investment center with the following information: Operating income for the month ended March 31, 2014 $5,180,000 Desired ROI 17% Actual ROI 28% Assets invested $18,200,000
A) $5,180,000 B) $3,094,000 C) $2,086,000 D) $8,806,000
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 15%, salary allowances of $22,000 and $20,000 respectively, and the remainder equally. How much of the net income of $90,000 is allocated to Xavier?
A) $30,250 B) $47,750 C) $45,000 D) $42,250
Gross income refers to
A. the total amount of money made by a single individual during his or her lifetime. B. the money deducted from a person's paycheck to pay for federal, state, and local taxes. C. the money a consumer has left after paying taxes to use for necessities such as food, shelter, clothing, and transportation. D. the money that remains after paying for taxes and necessities. E. the total amount of money made in one year by a person, household, or family unit.
The advent of the Internet and a standardized communication protocol have contributed to
a. easier database programming b. data sharing across geographically dispersed locations c. the maximization of query functionality d. the elimination of a centralized database