Barker Company Has a December 31 Year End

question 14

Multiple Choice

Barker Company has a December 31 year end. The company received its property tax bill for 2021 on March 1, 2021. According to the bill, taxes of $ 24,000 for the year ended December 31, 2021 are due by April 30, 2021. On April 30, 2021, Barker will record which of the following entries?

• A) Dr. Cash; Cr. Property Tax Payable
• B) Dr. Property Tax Payable; Dr. Prepaid Property Tax; Cr. Cash
• C) Dr. Property Tax Expense; Cr. Property Tax Payable
• D) Dr. Property Tax Expense; Cr. Cash

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Definitions:

Expected Return

The anticipated average return on an investment, factoring in the probabilities of each potential outcome.

Expected Rate of Return

The anticipated average rate of return on an investment over a specified period.

Variance

The statistical measure of the dispersion of a set of data points, often used to quantify risk or volatility in financial contexts.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio.