5 Financial statements prepared on the basis inform users not only of transaction involving the payment and receipt of cash but also of obligations to pay cash in the future and of resources that represent cash to be received in the future. They provide information about transactions and other events that is, economic decisions. (A) actual, past, past, least (B) accrual, current, past, most (C) accrual, past, past, most (D) actual, past, current, least useful to users in making ) A business opens on 1 Jan 20x8. $30,000 per year and is payable in advance. 1 Jan 20x8: $8,000 31 Mar 20x8: $8,000 30 Jun 20x8: $8,000 30 Sep 20x8: $8,000 31 Dec 20x8: $8,000 Total rental expense paid as of 31 Dec 20x8 amounts to $40,000. What is the double entry? Prepayment $10,000 (A) (B) Rent expense $10,000 (C) Accrued income $10,000 (D) Income $10,000 Rent expense $10,000 Accrual $10,000 Income $10,000 Prepaid Income $10,000 6 ) Mr L purchases goods for $174,240 (including sales tax) and sells goods for $230,400 (including sales tax). The sales tax rate is 20% What amount of sales tax is ultimately payable to the tax authority based upon this information? (A) $56,160 (B) $29,040 (C) $38,400 (D) $9,360