The correct answer is True. When ownership of the items passes to the customer, revenue is realised. In addition to the requirements for determining when control transfers, a reporting entity must also satisfy certain additional requirements for a customer to have achieved control in a bill-and-hold arrangement.
A bill and hold sales arrangement allows for payment in advance of the item's delivery. This is a sales agreement when a product seller invoices a consumer up front but doesn't actually ship the thing until later.
In a bill and hold transaction, the vendor does not deliver the purchased goods to the customer, but the associated income is still recorded. Under this structure, revenue cannot be recognised until a number of severe requirements have been satisfied. The possibility of falsely recognising revenue too early exists otherwise.
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Answer:
$580,000 underapplied
Explanation:
The computation of the ending overhead is shown below:
The applied overhead is
= Predetermined overhead rate × actual machine hours
= $40 × 90,000
= $3,600,000
Now the underapplied overhead is
= $4,180,000 - $3,600,000
= $580,000
So the ending overhead is $580,000 underapplied
<span>MOE stands for 'measure of effectiveness'. Some of the most critical characteristics when exercising the analysis are: Visualization, Validation, Reflection,Evaluation, Estimation, Approach, Functional Errors, Standards and operational effectiveness.</span>
Answer:
Expected market return will be 10.97%
Explanation:
CAPM is method to calculates the expected return value using beta of the investment risk free rate and market premium of that investment.
According to CAPM
Expected Return Rate = Risdt free rate + Beta ( Market risk Premium)
Expected Return Rate = Risdt free rate + Beta ( Market Return - Risk free rate)
10.45% = 3.6% + 0.93 ( Market return - 3.6%)
10.45 - 3.60 = 0.93 ( Market return - 3.6%)
6.85 / 0.93 = Market return - 3.6%
7.37 + 3.60 = Market return
Market Return = 10.97%
Answer:
$9850
$ 146,172
Explanation:
The amount of premium on the bond issuance is the difference between the cash proceeds from the issue and the face value of the bond i.e $9,850($409,850-$400,000).
The total expense that would be recognized over the life of the bond is $146,172 as shown in the expense column of the attached amortization schedule.
Find attached effective interest amortization table.
The final balance is $22 more than the face value due rounding error.
