The correct answer among the above listed choices is letter b. Recording interest expense has an effect to decrease equity.
Interest Expense
-it is the cost of borrowing money to an entity in a specified period of time. Interest is usually running every day but usually paid monthly, quarterly, semiannually, or annually depending on the agreement.
-this is recorded as a non-operating expense in the income statement.
The interest expense formula is:
Interest expense = (Days during which funds were borrowed ÷ 365 Days) x Interest rate x Principal
Interest Expense will usually
increase expenseeither increase liabilities or decrease assetsdecrease owners' equity
For related topic about Differentiate revenues from expenses
The Difference between goods and services are : * Goods are the material items that the customers are ready to purchase for a price while Services are the amenities, benefits or facilities provided by the other persons.
* Goods are tangible items , they can be seen or touched where as services are intangible items.
* When the buyer purchases the goods by paying the consideration, the ownership of goods moves from the seller to the buyer. Conversely, the ownership of services is non-transferable.
* The evaluation of services is difficult because every service provider has a different approach of carrying out services, so it is hard to judge whose services are better than the other as compared to goods it was very simple and easy . * Goods can be returned to or exchanged with the seller, but it is not possible to return or exchange services, once they are provided.
* Goods can be distinguished from the seller. On the other hand, services and service provider are inseparable.
* Goods can be stored for future use, but services are time bound, if not availed in the given time, then it cannot be stored.
* First of all the goods are produced, then they are traded and finally consumed, whereas services are produced and consumed at the same time.
Subject Economics
The correct answer among the above listed choices is letter b. Recording interest expense has an effect to decrease equity.
Interest Expense-it is the cost of borrowing money to an entity in a specified period of time. Interest is usually running every day but usually paid monthly, quarterly, semiannually, or annually depending on the agreement.
-this is recorded as a non-operating expense in the income statement.
The interest expense formula is:
Interest expense = (Days during which funds were borrowed ÷ 365 Days) x Interest rate x Principal
Interest Expense will usually
increase expenseeither increase liabilities or decrease assetsdecrease owners' equityFor related topic about Differentiate revenues from expenses
Code: 11.11.3.8.
Ang kinakaharap na isyu sa paggawa ay tumutukoy at nangangahulugan sa mga bagay na maaaring magpabagal
Explanation:
In decorating bamboo, wood and metal products we need colorful paints, construction paper and double sided tapes.
#answerForTrees
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