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2 years ago

The revenue recognition principle states that companies typically record revenue:_____.

1 answer:

6 0

The revenue recognition principle states that companies typically record <u>revenue in the period in which they provide goods and services to the customers</u>.

The revenue recognition principle approach that agencies' sales are diagnosed while the product or service is taken into consideration and introduced to the customer — now not when the cash is acquired

The revenue recognition precept states that sales should be recognized and recorded while it is realized or realizable and when they are miles earned. In different phrases, groups shouldn't wait till sales are really accrued to document it in their books. revenue needs to be recorded when the business has earned the revenue.

According to usually accepted accounting principles, for a company to document revenue on its books, there needs to be a vital occasion to signal a transaction, including the sale of products, or a contracted mission, and there needs to be a fee for the products or services that matches the said price or agreed-upon fee.

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The price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag, and eddie has $10 to spend on both goods. the m

marysya [2.9K]

If peanuts cost .25 per bag, you would divide $10 by .25 to determine how many bags you are able to buy.

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3 years ago

A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t

SCORPION-xisa [38]

The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.

To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

CA = $500 (1.5) = $750

Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

Inventory level = $750 (500 x 1.1) = $412,500

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3 years ago

Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $16

Lana71 [14]

Answer: 26,325 hrs

Explanation:

We will use the Labor Efficiency Variance concept to calculate this question.

The formula for which is,

Labour Efficiency Variance = (Standard Direct Labour Hours allowed - Actual Direct Labour hours used) * Std Direct Labour Rate

where,

the Standard Direct Labour Hours allowed = Actual units produced * Standard Direct Labour Hours

Substituting figures that would be,

= 1300 x 20 = 26,000hrs

We have the Standard direct labor rate at $16

The Labor Efficiency Variance is 5,200 unfavourable meaning that it is negative = -5,200

Since we are solving for Actual Direct Labour hours used we will denote it, x

Substituting figures we have

-5200 = (26,000 - x) * 16

-5200 = 416,000 - 16x

16x = 416,000 + 5200

16x = 421,200

x = 26,325

The means that the Actual Direct Labour hours used was 26,325.

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3 years ago

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When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than

inysia [295]

Answer: Air travel is a normal good and vacation travel by car is an inferior good

Explanation: What is a normal good and what is an inferior good.

Normal goods are those goods for which the demand rises as consumer income rises. While inferior goods are goods whose demand increases when consumer income decreases.

This therefore means that the demand of inferior goods is inversely related to the income of the consumer.

From the question above, we can say that car trips are inferior goods while the air travel are normal goods.

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4 years ago

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A problem in developing effective compensation for teams is that: Multiple choice question. rewarding individuals erodes cohesiv

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A problem in developing effective compensation for teams is that rewarding individuals erodes cohesiveness. Thus the first option is correct.

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Cohesiveness refers to the act or the property of togetherness. in the group , cohesiveness can be seen when the group performs the activity. It is important to have cohesiveness in every group for the accomplishment of the task.

When a individual in a group is provided a compensation it leads to dispute and chaos which erodes the cohesiveness of the group. Thus the first option is correct.

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2 years ago