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Answer To The MCQ With Brief Explanation The correct answer is (B), as Modern Definition of Accounting defines the accounting information in such a way that identifies, records, and communicates the economic events, which ,obviously, can be expressed in terms of monetary value, of an organization or a business to interested users (both Internal and External Users, also called Users of Financial Information ). Modern Accounting definition emphasizes on the communication of information to interested parties which includes both internal (Owners, Board of Directors, Management, Employees, etc.) and external parties (Customers, Banks, Financial Institutions, Banks, etc.). These parties are the Users of Financial Statements. Communication of information includes all the accounting data which shows the business of a company. In modern accounting, useful information is provided withe use of technology such as computerized accounting in which software are used to record books of accounts in ...

Firstly, we find out Assets at the end, then we can calculate change in assets and change in Owners’ Equity. Given: Liabilities at the End = $25000   Owners’ Equity at the End = $125000 Find: Assets at the End = ? As we know Accounting Equation , so we have: Assets at the End = Liabilities at the End   +   Owners’ Equity at the End   Assets at the End =              $25000             +                    $125000   Assets at the End = $150000 Change In Assets      =    Assets At The End     -        Assets At The Beginning   Change In Assets      =             $150000             -                      $150000  ...

The correct answer is (a). An Expense , as the use or consume of assets or services gives benefits to the business in conducting the daily operations of the business in order to earn Revenue for the business. Such as Rent Expense is incurred to receive the rent facility services from company / corpora tion and to use the assets in the business and in order to earn revenue from business operations. In accounting, the revenues must be matched with relevant expenses of the accounting period, otherwise, it does not give the correct accounting information of current accounting period to users of accounting information. For example, if a company paid (12 months of total $6,000,000 and per month $500,000) in advance to property owner on 1st June, 2022, then the rent for six months is $3,000,000 from 1st June, 2024 to 31st December, 2022, is charged to expense in Income Statement for the accounting period ending on 31st December, 2022 and the remaining unexpired portion is transferred t...

Given: Assets at the end = $6500 Liabilities at the end = $2000 Find: Equity (E) at the end = ? As we know Accounting Equation , so we have:             Assets at the end    =    Liabilities at the end   +   Equity at the end               E at the end         =      Assets at the end       -  Liabilities at the end               E at the end         =            $6500                    -              $2000 E at the end = $4500 So, the equity of the company at the end of the accounting period is $4,500 and at this balance of stockholders' equity, both sides (left side or assets side and right side or liabilities & equity side) o...

The Correct Answer of this Multiple Choice Question (MCQ) is (A) Owners' equity increased $30,000; Revenues Were $90,000 Explanation Of This Short Question: From Accounting Equation , we find change in Owner’s Equity and from owner’s equity formula, we find Revenues for the period (Assuming No Other Changes Take Place).         Assets   =  Liabilities   + Owner’s Equity  -  Expenses       -$20000  =   $10000  +  Change In Owner’s Equity   - $60000       Change In Owner’s Equity = -$20000 - $10000 + $60000 = $30000 Increase To calculate Revenues , we assume no other changes take place, so we have:       Net Income = Owner’s Equity         Revenues - Expenses = Owner’s Equity         Revenues - $60000 = +$3000         Revenues = +$30000 + $60000         ...

Answer Of Short Question We have:            Equity at the Beginning = $150,000            Assets Increased By = $70,000            Liabilities Increased By = $30,000           Assets at the Beginning = $200,000 Find: Equity at the End = ? Firstly, we calculate Change In Equity (increase or decrease) because after that we can find out equity at the end. As we know Accounting Equation , so we have:                            Assets                =        Liabilities      +         Equity                  Change In Equity       =   Change In Assets   -   Change In Liabilities       ...

Firstly, we find Assets at the end, then we know about how much the assets change at the year’s end. We know Accounting Equation :                        Assets   =    Liabilities   +   Owners’ Equity                        Assets   =      $75000     +         $10000                        Assets   =  $175000 Increase Now, How Much Change In Assets At The End Of The Accounting Period: Assets at the End             =    $175000 Assets at the Beginning  =  ($150000) Change In Assets             =     $25000 So, assets increased from $150000 to $175000 with an increase in Asse...