Because they are always converted to an income summary throughout the closing process, revenue and expense accounts are known as nominal accounts.
so the statement is false
Revenue Definition:
Revenue in financial accounting refers to an inflow of funds, typically from sales or services provided by commercial activity. It is also known as sales or business turnover. In other terms, revenue refers to the amount of money that a company or organization receives. For instance, certain businesses may receive income from royalties, interest, or copyright fees. While for some businesses, money may come from the services they provide to clients. Donations from groups, corporations, and people are referred to as revenue for non-profit organizations.
Operating Revenue Examples:
- Sales.
- Fees or Commission Earned.
- Service Revenues.
Expenses Definition:
A money outflow is known as an expense or expenditure in financial accounting. As an illustration, a tenant's expenses can include rent. Parents' expenses could include the cost of their children's tuition. Expenses for a business include things like electricity bills, bank fees, sales expenses, phone bills, repairs, and services.
List of expenses in accounts frequently observed when preparing financial statements:
- Cost of goods sold.
- Legal fees.
- Depreciation.
Learn more about Revenue and expense accounts here
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Answer:
Year-end WIP 62,200
jounral entry for completed jobs:
-------------------------------------
Finished Good Inventory 1,149,800 DEBIT
WIP inventory 1,149,800 CREDIT
-------------------------------------
Explanation:
<u>WIP </u>
Beginning $ 72,000
Materials $ 390,000
Labor $ 500,000
Overhead <u>$ 250,000</u>
Total WIP $ 1,212,000
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<u>Finished Jobs:</u>
Job 210 $ 200,000
Job 224 $ 225,000
Job 216 $ 288,000
Job 230 <u>$ 436,800</u>
Total $ 1,149,800
the jobs complete will move to finished good and credit WIP inventory
WIP year-end:
1,212,000 - 1,149,800 = 62,200
Dividends= $ that people who bought stock in a company receive. Generally, these increase when the company is doing well.
Stock= becomes more expensive the better a company is doing and has been doing for a while because it is in higher demand.
I predict that the company's stock will rise because it is in higher demand based upon it's consistently doing well. Make sense?
Answer:
I will accept the offer if the price per painting is $56,312.41 or higher.
Explanation:
We will calculate the present value of the other option which is, selling our painting as a freelancer.
C 315,000.00
time 5
rate 0.2
PV $942,042.8241
Now, we subtract the signing bonus of 100,000
942,042.83 - 100,000 = 842,042.83
And solve for the annual proceeds from the painting we need to equalize the opportunity cost:
PV 842,042.83
time 5
rate 0.2
C $ 281,562.03
Now, we divide by the 5 painting per year:
$281,562.03 per year / 5 painting per year = $56,312.41
Answer:
b. The indirect method
Explanation:
The Operating Activity Section Calculates the Net Cash flow from Operating Activities. It can be prepared in only two methods according to IAS 7.The methods are Indirect Method, Direct Method
Indirect Method Reconciles the Net Income for the Year to the Net Cash flow from Operating Activities after adjustments of Non- Cash flow Items, and Adjustments for Working Capital Movements.
Direct Method focuses on the Cash Inflows and Outflows related to the Operating activities to Calculate the Net Cash flow from Operating Activities.These Cash flows results from Receipts from Customers and Payments made to Suppliers and Employees
