Mr. Macal started an auto trading business and invested 50000 dollars in this business He sold his cars to a car shop for 60000 dollars November 1 The store paid him 50000 dollars in cash The $ 10,000 fee will also be paid one month later (31 November According to the accrual, Mr. Macal's income is 60000 $ a) Please give a different example of accruals, and write a numeric example for it with accounting entries. b) Please classify differences between accrued expenses, payables, and provisions. Give an example for each one.
Mr. Macal started an auto trading business and invested 50000 dollars in this business He sold his cars to a car shop for 60000 dollars November 1 The store paid him 50000 dollars in cash The $ 10,000 fee will also be paid one month later (31 November According to the accrual, Mr. Macal's income is 60000 $ a) Please give a different example of accruals, and write a numeric example for it with accounting entries. b) Please classify differences between accrued expenses, payables, and provisions. Give an example for each one.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
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Mr. Macal started an auto trading business and invested 50000 dollars in this business
He sold his cars to a car shop for 60000 dollars November 1
The store paid him 50000 dollars in cash The $ 10,000 fee will also be paid one month later (31 November
According to the accrual, Mr. Macal's income is 60000 $
a) Please give a different example of accruals, and write a numeric example for it with accounting entries.
b) Please classify differences between accrued expenses, payables, and provisions. Give an example for each one.
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