the average accounting return is found to be 15.19%
Average Accounting Return (AAR) = Average Project Net Income / Average Book Value Investment
Average annual project income = $72,000 / 4 years = $18,000
Average book value of investment = $172,000 + ($65,000/2) = $118,500
AAR = 18,000 / 118,500 = 15.19%
The average accounting return (AAR) is calculated by dividing the average project earnings after taxes and depreciation by the average book value of the investment over its life. The average accounting return is used in making capital budgeting decisions.
The average accounting return (AAR) has both benefits and drawbacks. one of its advantages is that It is simpler to calculate than other capital budgeting decision rules. It only requires the investment's net income and book values income and book values of the investment over its lifetime.
The disadvantage is that it is based on net income and book values rather than cash flows and market values.
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Gemini group ordered motor tune ups and oil changes on their entire fleet of company vehicles in the third quarter. How should this expense be recorded?.
Gemini Group organised oil changes and motor tune-ups.Modifications to their entire fleet of business vehicles when the third quarter began. Make sure to include this as a revenue expenditure, spending.
The concept of “revenue expenditure”expenses incurred by a business on a regular basis operations from which a profit will be realised during the same period. Utilities, rent, salary, and commissions, manufacturing, legal, insurance and other expenses like printing and mailing examples of these costs there are basically two types, the first of which is pertaining to the sales cost.The other is associated with Opex. Price of a sale the cost of purchasing products or receiving services that must be made accessible for purchase while running cost is the cost incurred to maintain a business.Any commercial transaction involves costs, which are common. The cost of changing the oil In the company’s truck fleet is deducted from the repairs and maintenance charge.
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a multinational organization is extremely confident about its latest product and releases a single version of the product across the world. the organization is adopting a(n) strategy with its new product.
The organization is adopting a global strategy with its new product.
A company that has a global strategy is one that is eager to compete and grow in the international market. The global strategy consists of the plans and strategies it employs to grow in other nations so that it can increase the revenue from the goods and services it provides there. Managers adopt a global strategy when they decide that businesses should utilise the same fundamental marketing strategy and offer the same standardised product in every national market where it competes.
It offers more chances for ideas created locally or in one country to be used in other markets. This is done in order to advertise or market its goods and services internationally. This approach is taken in response to the various characteristics of international commerce and the state of the global markets.
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south trucking, inc. stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and 9.2 percent in a recession. the probabilities of a boom, normal economy, and a recession are 6 percent, 92 percent, and 2 percent, respectively. what is the standard deviation of the returns on this stock? (round to six decimal places for intermediate calculation) group of answer choices .38 percent .55 percent .42 percent .06 percent .13 percent
0.32% is the standard deviation of the returns on this stock if south trucking, inc. stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and 9.2 percent in a recession.
A security that denotes ownership of a portion of the issuing company is recession share referred to as a stock, also known as equity. Shares, which are units of stock, entitle their owners to a portion of the company's assets and profits based on how many shares they own.
The cornerstone of many individual investors' portfolios, stocks are recession primarily bought and sold on stock exchanges. Government rules aimed share at shielding investors from dishonest practices must be followed when trading stocks.
Expected return=Respective return*Respective probability
=(0.08*8.4)+(0.7*8.9)+(0.22*9.55)
=9.003%
probability Return probability*(Return-Expected Return)^2
0.08 8.4 0.08*(8.4-9.003)^2=0.02908872
0.7 8.9 0.7*(8.9-9.003)^2=0.0074263
0.22 9.55 0.22*(9.55-9.003)^2=0.06582598
Total=0.102341%
Standard deviation=[Total probability*(Return-Expected Return)^2/Total probability]^(1/2)
=(0.102341)^(1/2)
=0.32%
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In what range do the closing costs on a home loan typically fall?
a. 1% to 3%
b. 3% to 5%
c. 5% to 7%
d. 7% to 10%
Please select the best answer from the choices provided
OA
OB
OC
OD
Answer:3-5% on edge just got it right
Explanation:
Consider the history of the world from 1 million b.c. until now. although data from early history are limited, we have some information about how people lived and how much they consumed. a. based on the information, we can conclude that the global rate of economic growth has remained constant throughout history. true false
It is false that the global rate of economic growth has remained constant throughout history.
The secret to enhanced wealth is technological innovation that boosts productivity. But advances in technology occurred earlier than the 17th century. A few non-technical novelties include windmills, irrigation technology, and new crops from the New World.
Populations grow as a result of technological advancements, but not in terms of wealth. The productivity and population density should be positively correlated, if the study of the pre-growth economy is accurate.
Between 1948 and 2022, the GDP Annual Growth Rate in the United States averaged 3.14 percent, with record highs of 13.40 percent in the fourth quarter of 1950 and -8.40 percent in the second quarter of 2020.
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according to the market-based approach, environmental problems multiple choice are caused by conservationists. are caused by the inexhaustible supply of resources. need to be solved through corporate social responsibility. deserve economic solutions.
According to the market-based approach, environmental problems deserve economic solutions.
One of the most important environmental problems of the present is outdoor air pollution. According to World Health Organization (WHO) research, air pollution kills an estimated 4.2 to 7 million people worldwide each year, and nine out of ten people breathe polluted air.
Environmental Solutions are the strategies and solutions used to create a healthier, more sustainable, and balanced planet or environment. There are various approaches to Environmental Solutions; we can either take care of our environment on our own or hire an environmental services agency.
Hence, the correct answer is the "4" option.
The question is incomplete, the complete question is:
According to the market-based approach, environmental problems ___________.
Multiple choices:
(1) are caused by conservationists
(2) are caused by the inexhaustible supply of resources
(3) need to be solved through corporate social responsibility
(4) deserve economic solutions
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research indicates that high-performance teams are much more likely to develop when the manager hand-selects team members. True False
The given statement is true, that high-performance teams are much more likely to develop when the manager hand-selects team members.
What holds true for high-achieving teams?Teams that work well together have similar goals, objectives, and priorities. To ensure that their efforts result in success, they establish team and personal goals that complement this common vision.
In order for everyone to know exactly what they need to do and how to get there, goals must not only be aligned, but also clearly defined. The hand-picking of team members by the manager increases the likelihood of high-performance teams developing.
Therefore, it is true.
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the horizontal revolution is characterized by the fact that . a. only companies can communicate with huge numbers of people. b. only governments can communicate with huge numbers of people. c. information flows from big companies down to the people. d. information flows from governments down to big companies. e. information flows across people.
The horizontal revolution is characterized by the fact that information flows across people. Option (e) is correct.
Social media, in its most basic sense, is a group of computer-mediated technologies that make it simple for individuals to access, send, and exchange information of all kinds. According to Tuten and Solomon (2014), social media refers to "the means of communication, conveyance, collaboration and nurturing among interconnected and interdependent networks of individuals and communities using the new technology."
They refer to this information transfer from major corporations or governments to a sizable population as a horizontal revolution. This transfer occurs with the click of a keypad.
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a company is considering investing $200,000 in a project with the following anticipated net cash flows: year 1: $65,000 year 2: $50,000 year 3: $55,000 year 4: $35,000 year 5: $40,000 year 6: $50,000 in what year will payback occur? a.) year 5 b.) year 6 c.) year 4 d.) year 3
Option c. Year 4 is the correct answer. The payback for the project will begin from year 4 onwards
Profit and cash flow are crucial financial indicators for businesses. However, it happens frequently for persons who are new to finance and accounting to mix up the two terms. Making important decisions about a company's performance and financial health requires an understanding that cash flow and profit are not the same thing.
Amount of investment: $200,000
Cash flows:
Year 1: $65000
Year 2: $50000
Year 3: $55000
Year 4: $35000
Year 5: $40000
Year 6: $50000
Sum of cash flow for Years 1 to 4 = 65000 + 50000 + 55000 + 35000 = $205000
Since $205000 is greater than $20000 in year 4, payback will occur from year 4 onwards
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boersma sales, incorporated, a merchandising company, reported sales of 7,100 units in september at a selling price of $682 per unit. cost of goods sold, which is a variable cost, was $317 per unit. variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit. the total fixed selling expenses were $157,200 and the total administrative expenses were $338,000. the contribution margin for september was:
The total selling expenses were $338,000then the contribution margin for September was $2,591,500
Gross Margin = Revenue - Cost of goods sold
= (7100 × 682) — (7100 × 317) =
= 2,591,500
Only the cost of items sold is deducted from sales in order to calculate gross margin. All variable expenses are subtracted from revenue to calculate contribution margin .The money left over after sales after paying all variable costs related to producing a product is a company's contribution margin, often known as the gross margin. Your net income, or profit, is obtained by deducting fixed costs from your contribution margin, such as rent, equipment leases, and employee pay.
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Type the correct answer in the box.
Identify the marketing research technique implied in the scenario.
A toothpaste manufacturing company has created a new ad for their product to air on television. After the ad airs, bcthey intend to show the ad to a certain
number of customers and then ask them for their feedback regarding the ad. This company is engaging in the _____________
market research technique.
The company is engaging in Customer behavior marketing research techniques.
Consumer Behavior
Consumer behavior refers to the study of consumers and the actions and the decision processes they use to purchase goods and services to satisfy their needs and wants, including emotional, mental, and behavioral responses
Types of
Complex buying behaviorDissonance-reducing buying behaviorHabitual buying behaviorVariety seeking behaviorHence, The company is engaging in Customer behavior marketing research techniques.
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the longer the focus of managerial incentive compensation, the greater the top-level managers. a. earnings potential for b. potential tax burden for c. risks borne by d. incentives for
Answer (c) is the right choice. The risks assumed by top-level managers increase with the length of the managerial incentive compensation emphasis.
Incentives for managing risk: what are they?Executive remuneration often creates risk-taking incentives that are intended to increase shareholder value by lowering managerial risk aversion and encouraging managers to make risky investments that will increase shareholder value.
What are the dangers of using the incorrect incentives?Financial incentives come with the risk of fostering wage inequity, which can increase turnover and degrade performance in addition to encouraging poor behavior. When financial incentives are based on performance, managers and workers performing identical tasks are paid differently.
What impact do incentives have on employees?Incentives were taken into account as a type of compensation that is directly related to workers' performance. Employee performance improves when profits or incentives increase. Another method of paying employees outside their salaries is through this technique of giving them financial incentives.
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a stock is expected to pay dividends of $1.20 per share in year 1 and $1.35 per share in year 2. after that, the dividend is expected to increase by 2.5% annually. what is the current value of the stock at a discount rate of 14.5%? $ (keep 2 decimal digits in your final answer)
If a stock is expected to pay dividends of $1.20 per share in year 1 and $1.35 per share in year 2. the current value of the stock at a discount rate of 14.5% is $10.87.
How to find the current value of the stock?First step is to find the price inn year 2 (P2)
P2 = D3 ÷ (r - g)
Price in year 2= 1.35 × 1.025 ÷ (0.145 - 0.025)
Price in year 2 = $1.38375 ÷ (0.145 - 0.025)
Price in year 2 = $1.38375 ÷ 0.12
Price in year 2= $11.53125
Now let find the current price
Current Price = $1.20 ÷ 1.145^1 + $1.35 ÷ 1.145² + $11.53125 ÷ 1.145²
Current Price = $10.87
Therefore the current price is $10.87.
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short- and long-run equilibrium ii. if the economy is in short-run macroeconomic equilibrium at e1, it is in a(n):
Short- and long-run equilibrium ii. if the economy is in short-run macroeconomic equilibrium at e1, it is in an inflationary gap.
A macroeconomic concept known as the inflationary gap quantifies the discrepancy between the real gross domestic product (GDP) at the current level and the GDP that would exist if the economy were experiencing full employment.
When demand for goods and services outpaces supply due to elements like higher levels of overall employment, increasing trade activity, or higher government spending, there is an inflationary gap.
In light of this, there may be an inflationary gap if the real GDP exceeds the potential GDP. The inflationary gap is so named because an economy's increased consumption as a result of the relative gain in real GDP eventually drives up prices.
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Explain why firms in a monopolistically competitive market may be able to charge slightly different prices while prices will be identical in a perfectly competitive market.
Firms in a monopolistically competitive market may be able to charge slightly different prices while prices will be identical in a perfectly competitive market because the former has many small buyers and many sellers, has no barriers, and has differentiated products while the latter has restrictions on exit and the demand-supply outputs and inputs are perfectly elastic.
A market that is monopolistically competitive combines the characteristics of monopolies and perfectly competitive markets, however monopolistic enterprises are nevertheless allowed to set their own prices because they create differentiated products from their competitors.
In monopolistic competition, businesses can charge whatever the public is willing to pay for their products, and they also want as many customers as possible to perceive that their products and services are superior to those of competing firms.
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which of the following are examples of systematic risk? multiple select question. future rates of inflation labour strikes regulatory changes in tax rates an increase in competition in the industry
Examples of systematic risk are
-future rates of inflation-regulatory changes in tax ratesOptions A and C
What is systematic risk?Generally, In the fields of finance and economics, the concept of systematic risk refers to the sensitivity of an organization to occurrences that have an effect on aggregate outcomes, such as total economy-wide resource holdings or aggregate revenue.
A market or market sector is said to have a systemic risk if it carries a risk that is intrinsic to the market as a whole.'
Systematic risk, which may also be referred to as "undiversifiable risk," "volatility," or "market risk," is a danger that impacts the whole market and not simply a single stock or industry.
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the value frontier is where: group of answer choices only low-end products are available. technology makes all the difference. the buyer's expectations and the producer's value proposition converge. there is increased capital productivity. none of these answers is correct.
The value frontier is often defined as the point where the buyer’s expectations and the producer’s value proposition converge.
Prices of production is a concept in Karl Marx's critique of the political economic system, described as "cost-price + average earnings".
A production fee can be the notion of as a kind of delivery price for merchandise; it refers to the price levels at which newly produced items and services might be sold by way of the manufacturers, to be able to reach a regular, average income charge on the capital invested to provide the products (not similar to the profit on the turnover).
The significance of those fee degrees is, that quite a few other fees are based totally on them, or derived from them: in Marx's idea, they decide the fee shape of capitalist manufacturing.
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on january 1, a company issues bonds dated january 1 with a par value of $370,000. the bonds mature in 5 years. the contract rate is 11%, and interest is paid semiannually on june 30 and december 31. the market rate is 10% and the bonds are sold for $384,280. the journal entry to record the first interest payment using straight-line amortization is: (rounded to the nearest dollar.)
The journal entry is shown below:
Cash Dr $370,000
Discount on bond payable Dr $14,280
To Bond payable $384,280
(Being the issuance of the bond is recorded)
What is journal entries?
A journal entry is the act of recording any transaction, whether one that is economic or not. An accounting diary that displays the debit and credit balances of a corporation lists transactions. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.
A journal entry is a record of a business's financial transactions kept in its accounting books. An accurate date, the sums to be debited and credited, a description of the transaction, and a special reference number are all components of a properly documented journal entry.
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before it collapsed swissair was once one of the richest airlines in the world. leaders felt so successful that they quit questioning their decisions (individual concerns were brushed aside or kept quiet); this practice is known as .
A poorly thought-out alliance strategy that also damaged Swissair's reputation as a high-quality carrier and the company's failure to successfully coordinate its own operations led to Swissair's quick collapse from one of the industry' most famous carriers into bankruptcy.
Affected by the Great Depression was Switzerland?
The two epicentres were the United States and Germany, although every economy-dependent nation suffered. With the exception of 1937 and 1939, Switzerland's industrial production decreased by 20% between 1929 and 1932 and stayed below the 1929.
The two epicentres were the United States and Germany, although every economy-dependent nation suffered. With the exception of 1937 and 1939, Switzerland's industrial production decreased by 20% between 1929 and 1932 and stayed below the 1929 level through the conclusion of the decade (and, indeed, the end of World War II).
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you have a portfolio that is invested 24 percent in stock a, 38 percent in stock b, and 38 percent in stock c. the betas of the stocks are .71, 1.26, and 1.55, respectively. what is the beta of the portfolio?
The beta of the portfolio is 1.24.
A stock's anticipated movement in relation to changes in the entire market is measured by the concept of beta. A stock with a beta larger than 1.0 is thought to be more volatile than the overall market, whereas one with a beta below 1.0 is thought to be less volatile.
Percentage invested in Stock A = 24%
Percentage invested in Stock B = 38%
Percentage invested in Stock C = 38%
The beta of stock A = 0.71
The beta of stock B = 1.26
The beta of stock C = 1.55
The beta of the portfolio= 0.24 × 0.71 + 0.38 × 1.26 + 0.38 × 1.55
= 1.2382
= 1.24
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blanchard discusses a number of ways in which his organization seeks to inspire employees, including coaching them, gainsharing, allowing them to participate in decisions, and leaving them inspirational messages. what other behaviors are essential for strategic leaders today? check all that applyportment according to high ethical standardsimplementation of controls to monitor deviation from performance objectivesability to navigate a multicultural environmentdemonstration of a commitment to diversity and inclusion
Rules according to high ethical standards, implementation of controls to monitor deviation from performance objectives and demonstration of a commitment to diversity and inclusion are the other behaviours essential for strategic leaders.
Four leadership philosophies—direct, coach, support, and delegate—that are flexible to the full spectrum of an employee's developing behaviour are included in the situational leadership paradigm. They apply high ethical standards that are met with the team spirit. They also make sure that the team is focused and not deviated as well as they make commitments that are fulfilled by the team members so as to raise the business.
Paul Hersey and Ken Blanchard established the situational leadership approach where they stated that there isn't a single leadership approach that is effective in every circumstance.
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what sales technique encourages a client to purchase additional services, products, or add-ons at the point of sale
At the point of sale, the referral sales technique encourages customers to buy extra services, goods, or add-ons.
Any exchange of tangible or intangible commodities, services, or assets services for cash between two or more persons is referred to as a sale. In some sales situations, a seller is compensated with assets other than cash.
A deal between a buyer and a seller regarding a financial security's price and precise delivery arrangements is referred to as a sale in the financial sales markets.
Whatever the circumstances, a sale is fundamentally a contract between services a vendor offering a certain commodity or service and a customer willing sales to pay for it.
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how will unit (average) cost of manufacturing (materials, labor and overhead) usually change if the production leevel rises?
The unit (average) cost of manufacturing (materials, labor, and overhead) often rises in direct proportion to the rise in production.
What is manufacturing costs?The expenses incurred during the creation of a product are known as manufacturing costs. Direct material, direct labor, and manufacturing overhead expenditures are included in these expenses. Normally, the costs are shown as separate line items in the revenue statement. These expenses are incurred by an entity during the production process.Total production cost is calculated as follows: Direct materials + Direct labor + Manufacturing overheads.Materials, labor, and overhead are the three main areas of costs in the manufacturing industry. There are no indirect costs. In other words, while the foreman's salary and supplies are included, neither the corporate accountant's salary nor those of the accountant's office are.
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Which of the following rain-related losses WOULD be covered under this renters insurance policy?
Your laptop is ruined because you left your window open during a moderate rain shower
Your mattress is ruined because part of the apartment’s roof blew off during a major rainstorm, creating a stream of water landing directly on your bed
Your carpet is ruined because your roommate negligently left her wet boots, umbrella, and raincoat sitting in a pile on the rug all afternoon
You lose a day’s wages because a horrible rainstorm makes it impossible to get to your job
The statement that i rain-related losses WOULD be covered under this renters insurance policy is Your mattress is ruined because part of the apartment’s roof blew off during a major rainstorm, creating a stream of water landing directly on your bed.
What is insurance?Insurance can be described as the act insuring your property as well as other things with the insurance company and you will be paying some agreed premium on it.
It should be noted that there arer some things that cn not be covered by the insurance company such as when rainstorm affect your mattress.
Therefore, the second option is correct.
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assume you are reviewing a graph that plots earnings per share (eps) on the vertical axis, against earnings before interest and taxes (ebit) on the horizontal axis. the steeper the slope of the plotted line the: multiple choice lower the impact of financial leverage. lower the debt-equity ratio. higher the tax rate. greater the sensitivity of eps to changes in ebit. lower the probability of a negative eps.
Consider that you are looking at a graph where the horizontal axis represents profits before interest and taxes (EBIT) and the vertical axis represents earnings per share (EPS). The higher the sensitivity of eps to changes in EBIT, the steeper the slope of the depicted line. The right response in this case is option C.
DFL calculates the ratio of an organization's EPS changes to its EBIT change. To get a company's DFL, divide its percentage change in EPS by its percentage change in EBIT during a specific time period. The EBIT of a corporation divided by the EBIT less interest expenditure may also be used to calculate it.
A company's earnings have a significant impact on EPS. Earnings before interest and taxes (EBIT) are used to calculate EPS because they represent the amount of profit left over after business expenses are taken into account. Operating income is yet another term used to describe EBIT.
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the price of peaches is $2.29 per pound on monday. on thursday, the price of peaches goes to $2.79 per pound. : What changes: D or Qd?
The price of peaches is $2.29 per pound on Monday. On Thursday, the price of peaches goes to $2.79 per pound. Qd will change.
What is demand in an economy?
Demand refers to the desire and willingness of consumers to purchase a product or service at a particular time or date. Consumers must also be able to pay for what they want or need, within their disposable income budget. Therefore, demand is a force influencing economic growth and market expansion.
What is the quantity demanded ?Quantity demanded is a term used in economics to describe the total quantity of a good or service demanded by consumers in a given time period. It depends on the price of the good or service in the market, whether the market is in equilibrium or not.
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according to the bcg matrix, business units that are doing poorly in a low growth market are called . group of answer choices
An analysis of a company's products using a BCG matrix is a tool for long-term strategic planning. Companies can use the matrix to find new opportunities for growth and choose their future investment strategy.
What Is a BCG Matrix?Businesses can better understand their present and future competitive environments by using a BCG matrix.Business leaders can use the process to enhance products, spot new opportunities, and even decide which services to cut out.A BCG matrix has limitations, thus some businesses might want to look into alternative models.This article is for business owners who wish to assess their industry and make future plans for their enterprise.Since 1968, businesses have utilized the BCG model to help them understand which goods will help them take advantage of chances for market share expansion and provide them a competitive edge.The BCG matrix model, which was created more than 50 years ago, is still a useful resource for businesses looking to assess their potential.To Learn more About BCG matrix refer to :
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royal company purchased a dump truck at the beginning of 2015 at a cost of $60,000. the truck had an estimated life of six years and an estimated residual value of $24,000. on january 1, 2016, the company made major repairs of $20,000 to the truck that extended the life one year. thus, starting with 2017, the truck has a remaining life of five years and a new salvage value of $8,000. royal uses the straight-line depreciation method. what is the book value of the truck to be reported on the balance sheet at december 31, 2017?
Royal uses the straight-line depreciation method. $ 54133.34 is the book value of the truck to be reported on the balance sheet on December 31, 2017.
Depreciation for 2015 = [cost-salvage]/useful; life
= [60000-24000]/6
= 36000/6
= $ 6000.
Book value at 1jan 2016 =cost -depreciation
= 60000-6000= $ 54000
New cost after major repair = 54000+20000= 74000
New life on 1jan 2016: 6 years
depreciation for 2016= [74000-24000]/6
= 50000/6
= 8333.33.
Book value at 1 jan2017 = 74000-8333.33 = $ 65666.67
Depreciation for 2017 = [65666.67-8000]/5
= 11533.33.
Book value at end of 31 December 2017 = Beginning book at 2017 -depreciation for 2017.
= 65666.67-11533.33
= $ 54133.34.
The term deprecation refers to an accounting system used to allocate the cost of a palpable or physical asset over its useful life. deprecation represents how important an asset's value has been used. It allows companies to earn profit from the means they enjoy by paying for them over a certain period of time.
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without knowing what happened later: if you were going to invest in the boston beer company ipo, what information would you use to figure out how much your max price per share would be? (3-4 sentences)
You would analyze the Boston Beer Company's financial statements to determine your maximum price per share. Potential investors can clearly understand a company's overall financial health from financial statements.
Give a brief account of financial statements.Financial statements, usually referred to as financial reports, are official records of the financial operations and status of an individual, company, or other institution. An easy-to-understand format is used to provide pertinent financial data in a systematic manner. They typically contain a management discussion and analysis and four fundamental financial statements:
A balance sheet, also known as a statement of financial position, details the assets, liabilities, and owner equity of a business at a specific point in time.An income statement, sometimes referred to as a profit and loss report (P&L report), statement of comprehensive income, or statement of revenue & expense, lists the revenue, expenses, and profits of a company. A statement of retained earnings, a statement of equity, or a statement of changes in equity provides information on the company's equity changes during a certain time period.A cash flow statement provides information on a company's investing, operating and financing operations as well as its cash flow for a specific time period.Other comprehensive income components that are not taken into account when calculating net income are included in a comprehensive income statement.To know more about, financial statements, visit :
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question content area a check for $342 was erroneously charged by the bank as $432. in order for the bank reconciliation to balance, you must add $90 to the bank statement balance. true false
In order for the bank reconciliation to balance, you must add $90 to the bank statement balance - True
A bank statement is a document that is delivered by a bank at the end of the month, detailing the balance of our accounts as well as any transactions that have occurred. Usually, the bank automatically withholds and processes the fees from the bank account. Therefore, any costs deducted from the account must be recorded by creating a journal entry when creating a bank reconciliation statement.
In the bank reconciliation statement, Interest earned is another factor that needs to be adjusted. In the example, the bank mistakenly charged $342 as $432, so the balance will be corrected by adding $90 to ensure that the final accounts are accurate.
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