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Question - A company paid the $1,350 premium on a three-year insurance policy on April 1, 2020. The policy gave protection beginning on that date. How many dollars of the premium will appear as an expense on the calendar year 2020 income statement assuming the accrual basis of accounting? Assuming the cash basis of accounting?
a. $1,350 accrual basis; $1,350 cash basis
b. $450 accrual basis; $450 cash basis
c. $1,012.50 accrual basis; $1,350 cash basis
d. $337.50 accrual basis; $1,350 cash basis
e. $1,350 accrual basis; $337.50 cash basis
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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