Answer:
a. Revenue recognition principle
Explanation:
The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting
It is not recorded when the cash is actually received.
When the sale is made, the same is to be shown in the books of accounts
Therefore as per the GAAP, the revenue should be addressed by revenue recognition
hence, the correct option is a.
Answer:
advertising is not permitted
Commissions can be received in connection with the offering.
Explanation:
Under the securities act of 1993, a regulation D private placements have some rules which included: advertising was not permitted and Commissions can be received in connection with the offering. These were only a few rules as Regulation D allows a "private placement" exemption if an issue is sold to a maximum of 35 "non-accredited" investors.
Answer:
Push system.
Explanation:
A push system produces finished-goods inventory in advance of customer demand using a forecast of sales and as such it is categorized as a make to stock because the production of goods are not based on actual demand by the consumers.
Under a push system, manufacturing is strictly based on a projected production plan and the flow of information between the manufacturer and the market is in the same direction with those of raw materials used.
Answer and Explanation:
The preparation of the sales section of the income statement is presented below:
<u>Income Statement
</u>
<u>For the year ended </u>
Sales
Sales revenue $903,400
Less:
Sales Discount $15,400
Sales return & allowances $22,000
Net Sales $866,000
hence the net sales is $866,000
The freight out would not be considered. Hence, ignored it
Answer:
A per se violation
Explanation:
A per se violation is one that violates antitrust laws for example agreements made that violates the Sherman antitrust act. It has adverse effects on the competitiveness of a market.
Sherman antitrust act of 1980 is aimed at regulating competitiveness in a market. It prohibits anticompetitive agreements, and unilateral activities that tries to monopolize a market.
In this scenario Omega corporation and precision products, inc., are the principal suppliers of their product in their market. They make an agreement that one will focus on retailers and the other on wholesalers.
This is an attempt to monopolize the market by the two principal suppliers, and is a violation of the Sherman antitrust act.
