Explain the types of accounts ​

Answers

Answer 1

Answer:

Hi there!

For accounting treatment , accounts are broadly classified into three types as personal account , real account and nominal account or fictitious account. They are as follows:

Personal account

The account which is related with a person or organization ( entity ), is termed as personal account. Here person means natural persons like Anna , Olivia , James etc and organization represents the artificial persons created by law. The rule for debit and credit for personal accounts is ;

Debit : The receiver

Credit : The giver

Real account

The account which is related with assets or property is known as real account. Land and building , plant and machinery, and furniture and fixtures are the examples of the real account. Properties or assets are either incoming or outgoing from the organization. The rule for real account is ;

Debit : What comes in

Credit : What goes out

Nominal account

The account which is related to expenses or loss and income or gain is known as nominal account. Rent , wages , salary , discount , interest and commission are the examples of nominal account. The rule of nominal account is;

Debit : the expenses or losses

Credit : the income or gains

Hope this helps..

Best regards!!

Answer 2

Explanation:

3 Different types of accounts in accounting are Real, Personal, and Nominal Account. Real account is then classified into two subcategories – Intangible real account, Tangible real account. Also, three different sub-types of Personal account are Natural, Representative, and Artificial.

PERSONAL ACCOUNT:

These accounts types are related to persons. These persons may be natural persons like Tom’s account, Sam’s account, etc.

These persons can also be artificial persons like partnership firms, companies, bodies corporate, an association of persons, etc.

There can be personal representative accounts as well.

Rule for this Account

Debit the receiver.  Credit the Giver.

REAL ACCOUNT:

These account types are related to assets or properties. They are further classified as Tangible real account and Intangible real accounts.

1.Tangible Real Accounts

These include assets that have a physical existence and can be touched. For example – Building A/c, cash A/c, stationery A/c, inventory A/c, etc.

2.Intangible Real Accounts

These assets do not have any physical existence and cannot be touched. However, these can be measured in terms of money and have value. For Example  – Goodwill, Patent, Copyright, Trademark, etc.

Real Account Rules

Debit what comes into the business. Credit what goes out of business.

NOMINAL ACCOUNT:

These accounts types are related to income or gains and expenses or losses. For example: – Rent A/c, commission received A/c, salary A/c, wages A/c, conveyance A/c, etc.

Rules

Debit all the expenses and losses of the business. Credit the incomes and gains of business.

There are some other accounts in accounting as well:

Cash Account – This account is used for keeping the records of payments done by cash, withdrawals, and deposits.

Income Account – The Purpose of this account is to keep the record of the income sources of business.

Expense Account – This account tracks the expenditure of the business.

Liabilities – If there is any debt or loan then that amount comes under liabilities.

Equities –  If there is an investment of the account owner or common stocks, retained earnings then these will fall under equities.


Related Questions

The ________, published by the Department of Labor, lists more than 20,000 job titles and descriptions and serves as a useful tool for getting a small business owner started when writing job descriptions.

Answers

Answer:

Dictionary of Occupational Titles

Explanation:

The answer is the Dictionary of Occupational Titles because this is a document created by the United States Department of Labor in which it establishes a big amount of different jobs in many areas and what they involve to help employers and the government to be able to define them in their organizations.

Refer to Scenario 19.2. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts. Group of answer choices

Answers

Answer:

cumulative discounts

Explanation:

Options:

A) allowance B )cash C) seasonal D) noncumulative E) cumulative

A cumulative discount refers to a company offering a discount in the sales price of an item or items if the total purchase is higher than a certain threshold. It is similar to offering discounts for buying in bulk (which refers to quantity), only that this type of discount is offered to customers that purchase over a certain amount of money.

Velma contracts with Gordon, who agrees to build a stone retaining wall and French drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Gordon breaches the contract by failing to get to work, Velma is under a legal obligation to

Answers

Answer:

Mitigate her damages.

Explanation:

In this scenario, Velma contracts with Gordon, who agrees to build a stone retaining wall and French drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Gordon breaches the contract by failing to get to work, Velma is under a legal obligation to mitigate her damages.

Velma has the legal rights and responsibilities to make sure she does anything humanly possible to reduce or lessen the damages to her property.

She could sue Gordon for not getting to work or failing to start work thereby causing more damage.

Rhonda, a junior accountant at a manufacturing company, was laid off from her job because she rejected multiple requests from the company's chief financial officer to engage in a physical relationship with him. In the context of employment legislation, this scenario best illustrates _____.

Answers

Answer: quid pro quo sexual harassment

Explanation:

The scenario represented in the question regarding Rhonda and her company's chief financial officer is referred to as quid pro quo sexual harassment.

Quid pro quo sexual harassment is a situation that occurs when benefits, pay, employment, position, training, title, position are based on the condition that the other individual involved agree to ones sexual advances. It should be noted that this is illegal.

one reason a company might prefer FDI over exporting. presence or threat of trade barriers costs of acquiring a foreign enterprise costs of establishing production facilities in a foreign country risk of giving away valuable technological know-how to a potential foreign competitor possibility of diminishing returns

Answers

Answer:

Presence or threat of trade barriers

Explanation:

If a company sees that a specific country has a presence or threat of trade barriers, the company will prefer to invest directly in foreign companies, instead of exporting.

This is because trade barriers, like tariffs or import quotas, will likely reduce the potential revenue that the company would get from exporting. It could reduce revenue so much as to make the company lose money.

Valerie promises Teresa that she will pay Teresa $50 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $50, then this is an implied, bilateral, executory contract.
a) true
b) false

Answers

Answer:

b) false

Explanation:

This could be considered a bilateral and executory contract because both parties agreed to perform and exchange consideration in the future (in this case, Saturday). But it cannot be considered an implied contract.

E.g., an implied contract happens when you enter a movie theater and a commercial relationship is established where the movie theater must allow you to see a movie and you must pay your ticket for doing so. The same applies for other public places restaurants, theme parks, etc.

But in this case, Valerie's house is not a place where any person is free to attend. You cannot just go into Valerie's house and start cleaning so that she pays you $50.

Implied contracts might also result from previous performances, e.g. Teresa cleans Valerie's house every Saturday for almost 2 years now. The past performance might result in an implied contract, but this wouldn't be the case here either.

The records of Skilling Inc. include the following information on one of its departments, which is considered an investment center. Sales totaled $9,800,000 and investment center income totaled $766,500 for the most recent year. Investment center average invested assets were $3,650,000 during that year. Top management has set a target income of 11.5% of investment center assets. What is the department's residual income

Answers

Answer:

Residual income= 346,750

Explanation:

Residual income is the excess of the controllable profit over the opportunity cost of capital invested.

It is used to evaluate the financial performance of a division or department

It is computed as follows:

Residual income = Controllable profit - (cost of capital× operating assets)

Net income - 766,500

investment asset-3,650,000

Cost of capital - 11.5%

Residual income =  766,500 - (11.5%×3,650,000) = 346750

Residual income= 346,750

Energy Drink, Inc. has decided to launch a new energy drink that will have the fewest calories among its competitors. To understand the market potential for the new drink and the demographics and attitudes of consumers who are likely to buy the product, Energy Drink, Inc should most likely use which of the following marketing research options?
a. archival research.
b. causal research.
c. descriptive research.
d. exploratory research.

Answers

Answer:

d. exploratory research.

Explanation:

Exploratory work is undertaken to reach out the details that have not been examined in depth in the history about the issue. It is widely used in marketing to assess the product's market value to determine the age, disposition as well as other characteristics of the likely customers.

Therefore the correct option is d as it represents the exploratory research.

Will's Whitewater Rafting sold 3 acres of land used in the business. The sales price was $6,000 and the adjusted basis of the land was $4,200. Will receives a down payment of $4,000 at the time of sale and will receive the remaining $2,000 early next year. The realized gain on the sale is $

Answers

Answer:

The realized gain on the sale is $1,800

Explanation

Adjusted basis is defined in tax accouting as the residual cost after deducting various related tax items.

Since

Selling Price = $6,000

Adjusted basis = $4,200

Therefore, the gain realized on the sale is

Sales - Adjusted basis

= $6,000 - $4,200

= $1,800

Fiscal policy lags:_________.
a) are generally longer than monetary policy lags.
b) are generally shorter than monetary policy lags.
c) are generally the same length as monetary policy lags.
d) may be shorter or longer than monetary policy lags.

Answers

Answer:

d) may be shorter or longer than monetary policy lags.

Explanation:

Remember, the term policy lags refers generally to the lag or length of time between the time when an economic problem is discovered, like increased unemployment, and the extent to which policy solves the economic problem.

From a general perspective this policy lags in fiscal policy may be shorter or longer than monetary policy lags depending on the political and economic environment of the country.

If 10,000 units which were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)
a. true
b. false

Answers

Answer:

False

Total equivalent units    89,000 units

Explanation:

Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work. These units are determined as follows:  

Equivalent units = Degree of work done(%) × units of inventory

Item                                          unit                                    Equivalent unit

Opening inventory            10,000    50% ×  10,000                 5000

Fully worked unit                  80,000     100%× 80,000              80,000

Closing inventory              20,000       20% × 20,000              4,000

Total equivalent units                                                               89,000

Notes:

1. Fully work represent units started and completed in the same period. They exclude the opening inventory.

Fully worked = 90000- 10,000 =80,000.

2. Note also at that the degree of completion for opening inventory is the simply the balance of work remaining to be done.

For example, for materials, 50% of work has been done on the opening inventory in the last period, hence the balance of 50% would be done this period

Voters are making a choice to spend money on three projects: a dam, a school, or a road. In the choice between the dam and the school, the majority favors the school. In a choice between a dam and a road, the majority favors a dam. In a choice between a road and a school, the majority favors a road. These rankings indicate that majority voting may:
a. Result in economically efficient outcomes because of rent-seeking behavior
b. Reflect irrational preferences
c. Produce inconsistent choices
d. Lead to consistent choices in spite of irrational community preferences

Answers

Answer:

c. Produce inconsistent choices

Explanation:

We can try to understand this in a mathematical way. If A is higher than B, and B is higher than C, then A should be higher than C. In other words, the school should have higher preference than the dam, and the dam has higher preference than the road, then the school should have higher preference than the road.

Since this is not the result here, we must conclude that the choices are inconsistent.

"Whenever Andrew considers upgrading his personal computer system, he consults with Jeremy, a knowledgeable friend who always has the newest technology. For Andrew, Jeremy is a(n) __________ in the diffusion of innovation curve."

Answers

Answer: innovator

Explanation:

From the question, we are informed that whenever Andrew considers upgrading his personal computer system, he normally consults with Jeremy, a knowledgeable friend who always has the newest technology.

Regarding the question, Jeremy is an innovator. An innovator is someone who has embraced new ideas and is always trying out new gadgets and technology.

Suppose that a company based in​ Dallas, Texas, initially confronts only four other rival firms. Its own market share is ​percent, which ties it with the other largest producer and seller in the industry. The market share of each of the other three firms is percent. Then a sixth​ firm, located in​ Cleveland, Ohio, enters the same industry. The new firm captures percent market​ share, and the market share of one of the smallest three original incumbents declines to percent as well. After the Cleveland​ firm's entry into the​ industry, what are the values of the​ four-firm concentration ratio and of the​ Herfindahl-Hirschman index?

Answers

Answer:

1. 86.7%

2. 2244.4

Explanation:

The computation is shown below:

1. The new 4 firm concentration ratio  after entry is

= Total mix share of 4 largest firms

= 30% + 30% + 13.33% + 13.33%

= 86.7%

2.  Now HHI index is

= sum of squared shares

= 30^2 + 30^2 + 13.33^2 + 13.33^2 + 6.67^2 + 6.67^2

= 2244.4

Hence, we applied the above values so that each part could be determined

Which situations are examples of how credit scores determine nonfinancial opportunities for consumers? Check all that apply.

Answers

Answer:

B. An employer hiring someone to handle financial information

C. An apartment owner gauging whether a tenant might break the rules

D. An apartment owner determining whether to rent a unit to someone

Explanation:

Credit scores are numbers ranging from 300 to 850 that are used to gauge the creditworthiness of individuals. Creditors check the credit history of borrowers to determine how well they have performed over time in prompt payment of debts and maintenance of good financial history. The higher the credit score, the better chances an individual has of being considered for financial favors. In the above scenario,

1. The employer who wants to hire someone to handle financial information would likely want to check if he has a good financial history himself. It would be an indication of his integrity capacity.

2. An apartment owner would use the credit score to gauge the potential tenant's history of keeping to agreements.

3. A potential tenant with a bad and low credit score would likely not keep up with rent payments and would eventually be a bad tenant. So, the apartment owner might then chose not to rent his apartment to such a person.

The option A, D and F are the examples that determine nonfinancial opportunities for consumers.

An employer hiring someone to handle financial information, an apartment owner determine whether to rent a unit to someone, a car insurance company predicting the likelihood of future claims are the examples of how credit scores determine nonfinancial opportunities for consumers.

Credit score is a numerical rating of your credit-worthiness. Individual's payment history and amount of debt has the largest impact on its credit score so we can conclude that option A, D and F are the examples that determine nonfinancial opportunities for consumers.

Learn more about credit score here: https://brainly.com/question/23024185

Learn more: https://brainly.com/question/17129745

List of options:

A. an employer determining whether a job candidate is smart

B. an employer hiring someone to handle financial information

C. an apartment owner gauging whether a tenant might break the rules

D. an apartment owner determining whether to rent a unit to someone

E. a car insurance company setting rates based on where someone lives

F. a car insurance company predicting the likelihood of future claims

What is the difference between crowd sourcing and crowd funding?

a) crowd sourcing carries fewer risks

b) crowd funding had money back guarantees

c) crowd sourcing was replaced by crowd funding

d) crowd funding has a financial aspect

Answers

Answer:

a) crowd sourcing carries fewer risks

Explanation:

Crowd sourcing: The term "crowd sourcing" is described as a phenomenon that encompasses the procedure of sourcing skills or information or some end products from a particular group or groups of different people.

Crowdfunding: The term "crowdfunding" is described as a phenomenon that encompasses the procedure of sourcing funds or money from a specific group of groups of different people.

In the question above, the correct answer is option a.

Answer:

crowd funding has a financial aspect

Kevin is not fond of travelling; hence, he did not take up an assignment as the job involved excessive travelling. On the other hand, Sam took up
the same assignment simply because he loves travelling. What is such a contrasting behavior called?
The contrasting behavior that influenced Kevin and Sam's job selection is known as

Answers

Answer:

Internal employee motivations or employee personality traits.

Explanation:

Remember, based on the context of this example, we notice here that, the two employees had different personalities, and thus affected their job selection.

Personality of an employee serves as internal motivation for certain job duties and may affect the quality of their work. Thus, recruitment staff should always strife to place the right person for the right job.

Escanaba purchased five-year debt securities on 1/1/21, which it plans to hold until maturity. At 12/31/21, the market value is 2% lower than carrying value. How should Escanaba report the 2021 unrealized loss?

Answers

Answer:

Escanaba should report their investment as held to maturity securities, therefore, they must be reported as non-current assets (since they mature in more than 1 year). Generally HTM securities are reported at their amortized cost.

This means that any change in their market price (gains or losses) will not be reported in the balance sheet nor the income statement.

EcoAthlete determines that the target market for its running shoes is people who are environmentally conscious. It uses only environmentally friendly materials in the production of its shoes, and packaging is made of exclusively recycled material. Which dimension of market segmentation does EcoAthlete use in determining this target market

Answers

Answer:

C) Lifestyle and Behavior

Explanation:

The reason is that Eco-Athlete is using its customer behavior and lifestyles to target a particular market segment which has common thinking and opinion about a particular item. In this case, Eco-Athlete is using Eco-friendly items because its customer are environmentally conscious which is their behavior that effects their lifestyle. So the company Eco-Athlete is basically using lifestyle and behavior dimension of market segmentation.

Paul attends the London Book Fair every year to represent his company and show its products to publishers from other countries. He also meets with individual publishers to discuss distributing their books in the U.S. The London Book Fair is Group of answer choices

Answers

Answer:dhehe

Explanation:

You and your spouse are in good health and have reasonably secure careers. Each of you makes about $40,000 annually. You own a home with a mortgage of $80,000, and you owe $15,000 on car loans, $5,000 in personal debts, and $4,000 on credit card loans. You have no other debts. You have no plans to increase the size of your family in the near future. Assume funeral expenses of $10,000. Estimate your total insurance needs using the DINK method.

Answers

Answer:

$62,000

Explanation:

the DINK method or double income, no kids method, makes two basic assumptions when considering insurance needs:

both spouses work and earn the same salariesif one spouse dies, the remaining one will keep working

In order to determine total insurance needs you add funeral expenses ($10,000) + half of mortgage ($40,000) + half of auto loan ($7,500) + half of credit card debts ($2,000) + half of personal debts ($2,500) = $62,000

Which subjects does the Aspire test assess?

Answers

Answer:

five subject areas: English, mathematics, reading, science, and writing

The process in which the title company oversees the closing or document signing of the loan in close conjunction with the entity performing the escrow function on the loan is known as what...?

Answers

Answer:

Title closing

Explanation:

Title closing process involves all the steps to make sure that you complete all the legal requirements to buy a home and this includes signing the loan documents and the title before the transaction is completed. In this, there is an agent from the title closing company that handles the process to make sure everything goes smoothly. According to this, the answer is that the process in which the title company oversees the closing or document signing of the loan in close conjunction with the entity performing the escrow function on the loan is known as title closing because this is a process that includes all the steps to complete the legal requirements to buy a real state like document signing of the loan.

Gill’s Bakery has been buying flour from the same supplier for years. But due to recent price hikes, Gill’s decides to switch to another supplier that is offering the same quantity and quality of flour at a reduced price. Which of the following best describes the buying situation that has occurred?
Select one:
a. New buy
b. Reverse auction
c. Modified rebuy
d. Straight rebuy

Answers

Answer:

C

Explanation:

A Modified Rebuy is when a person who usually buys a product from a particular supplier changes his supplier or other elements of his purchase when reordering.

Percent of sales method; write-off

At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries of Chan to record these transactions and events of December 31, February 1, and June 5.

Answers

Answer:

Entries are given below

Explanation:

On 31 Dec Chan company estimates its bad debts as 0.5% of all credit sales

                                                       DEBIT           CREDIT

Bad Debt(975,000x0.5%)           $4875

Allowance for bad debt                                     $4875

On February 1, Chan decides that the $580 account of P. Park is uncollectible

                                                       DEBIT           CREDIT

Allowance for bad debt              $580

Receivables                                                              $580

On June 5, Park unexpectedly pays the amount previously written off.

                                                             DEBIT           CREDIT

Receivables (reinstated)                    $580

Allowance for bad debt (reinstated)                           $580

Cash (amount received)                     $580

Receivables                                                                  $580

When a business firm implements several programs to encourage prompt and courteous customer service, employee participation, and better coordination with suppliers, it is making an effort to use:__________.
A) quality concern focus.
B) total quality management.
C) quality improved planning.
D) quality development.
E) quality commitment.

Answers

Answer:

B) total quality management.

Explanation:

Total quality management is a method of management that focuses on every member of staff being committed to maintaining a high of work in every aspect of the business operations.

There is continuous improvement in the ability of the employees to provide quality service and performance.

In the given scenario - When a business firm implements several programs to encourage prompt and courteous customer service, employee participation, and better coordination with suppliers.

This is an effort to institute total quality management

A Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per share at the end of next year. It is expected that the price of its stock will be $42 per share after two years. If the firm has an equity cost of capital of 9%, what is the maximum price that a prudent investor would be willing to pay for a share of the stock today

Answers

Answer:

$38.85

Explanation:

The computation of the maximum price would be willing to pay is shown below:

Current price = Future dividend × Present value of discount factor (rate of interest , time period)

= $1.75 ÷ 1.09 + $2.25 ÷ (1.09^2) + $42 ÷ (1.09^2)

= $1.61 + $1.89 + $35.35

= $38.85

Simply applied the above formula so that the maximum price could come

Home Appliance Corporation contracts with Instate Trucking Company to take a selection of appliance repair parts to Journey Airlines, Inc., with Journey to transport the goods to a KeepSafe Company warehouse. Instate Trucking, Journey Airlines, and KeepSafe each acknowledge possession of the goods by a document of title. Instate Trucking, Journey Airlines, and KeepSafe are

Answers

Answer: bailees.

Explanation:

Given: Home Appliance Corporation contracts with Instate Trucking Company to take a selection of appliance repair parts to Journey Airlines, Inc., with Journey to transport the goods to a KeepSafe Company warehouse which in terms known as Bailment which is a legal contract in law, where the owner(known as bailor) transfers physical possession of his property for a time to another party (known as bailees).

Here, Home Appliance Corporation is the bailor (Transfers possession of the goods to other party called bailee)

whereas  Instate Trucking, Journey Airlines, and KeepSafe are bailees.

Burberry is pursuing a focused differentiation strategy aimed at high-end luxury customers. However, the company is also employing a segmentation strategy to separate customers within that focus. The strategy offers items at an entry-level price point as well as couture items for the richest customers. Which market segmentation strategy is Burberry pursuing

Answers

Answer:

Burberry is pursuing an umbrella branding strategy

Explanation:

Based on the scenario being described it seems that Burberry is pursuing an umbrella branding strategy. This type of strategy focuses on having a single brand name for the sale of two or more related products with different specs. Which Burberry is doing by having separate category of items made specifically for different target populations, such as entry-level price point items and couture items, even though they are all under the Burberry brand.

Which statement is consistent with the law of supply? An increase in market price will lead to a decrease in quantity supplied. At a zero price, quantity supplied will be infinite. A reduction in market price will lead to an increase in quantity supplied. An increase in market price will lead to an increase in quantity supplied. b. Which of the following characteristics leads to an upward-sloping supply curve? Instructions: Click the box with a check mark for correct or click a second time to clear the box for incorrect. Increasing opportunity costs unanswered Increasing marginal costs unanswered Diminishing marginal utility unanswered A decrease in resource prices unanswered An increase in resource prices unanswered Increasing labor productivity unanswered c. How do you derive a market supply curve from individual supply curves? Add up prices paid for each unit supplied by producers Use the largest quantity supplied among all producers for each price Calculate the average quantity supplied among all producers Add up quantities supplied by all individual producers for each price

Answers

Answer:

1. A reduction in market price will lead to an increase in quantity supplied

2. Diminishing marginal utility

3. Add up quantities supplied by all individual producers for each price

Explanation:

Answer:

same i need help with this

Explanation:

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