Interest earned on the cash balance in the bank is recorded by the bank as:
A. An increase in the depositor's bank account.
B. A decrease in the depositor's bank account.
C. A decrease in the bank's asset account.
D. An increase in the bank's expense account.
E. An increase in the bank's asset account.
Answer: A
You might also like to view...
The most common means of making entries in the general ledger is via the journal voucher
Indicate whether the statement is true or false
Stella has been assigned to a new department in her company. She is a little nervous meeting her employees, therefore she decides to take them out for dinner to get to know them before work on Monday. Stella is hoping that creating a connection outside of work will help build trust in her abilities. Stella is attempting to create ______ trust.
A. Disposition-based B. Perception-based C. Cognition-based D. Affect-based
Jackson and Violet are CEOs of competing restaurants. For the past year, they have been exploring the possibility of a merger, but they can’t seem to agree on terms. Before they meet, they need to perform the first step of any negotiation process. Which of the following would be the best first step for each of them?
A. outline the goals and objectives they each would like to achieve B. prepare a new mission for the new combined company C. consider which employees to keep and which ones to let go after the merger D. buy new outfits for their waitstaff
A company is evaluating the purchase of a machine for $750,000 with a six-year useful life and no salvage value. The company uses straight-line depreciation and it assumes that the annual net cash flow from using the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is the company's average investment?
What will be an ideal response?