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Question - Al is a physician who conducts his practice as a sole proprietor. During 2019, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2018. At the end of 2019, Al held accounts receivable of $60,000, all for services rendered in 2019. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2020.
Compute Al's gross income for 2019 using the:
a. Cash basis of accounting.
b. Accrual basis of accounting.
c. Advise Al on which method of accounting he should use.
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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