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serious [3.7K]
1 year ago
13

If a company incorrectly records cash received for services to be provided in the future with a debit to cash and a credit to sa

les revenue, how will this error affect net income for the current period?.
Business
1 answer:
Elodia [21]1 year ago
3 0

If a company incorrectly records cash received for services to be provided in the future with a debit to cash and a credit to sales revenue, this error affect net income for the current period through the net income will be too high.

What is net income?

Net income is defined as an entity's earnings less expenses, amortization, depreciation and dividends, and taxes for a specific accounting period in both professional accounting.

Net income is the amount that a person or business makes after expenses, reimbursements, and taxes.

Therefore,

If a company incorrectly records cash received for services to be provided in the future with a debit to cash and a credit to sales revenue, this error affect net income for the current period through the net income will be too high.

To learn more about net income from the given link:
brainly.com/question/15530787

#SPJ4

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The cost of preferred stock is computed the same as the:
Anna71 [15]

Answer:

d. return on a perpetuity

Explanation:

Two types of stock are common and preferred. Preferred stockholders do not have voting rights but they have a higher claim to earnings and assets as compared to the common stockholders. In the case of preferred stock, a fixed annual dividend is obtained forever. So, the cost of preferred stock is computed the same as the return on a perpetuity

6 0
3 years ago
After a tax is imposed on the buyers of bottled water, the price buyers pay is $2.50 per bottle and the price sellers receive is
Dafna11 [192]

Answer:

Tax per unit = $0.75

Explanation:

Given:

Buyers pay per unit = $2.50

Sellers receive per unit = $1.75

Equilibrium price = $2.00

Tax per unit = ?

Computation of tax per unit:

Tax per unit = Margin between Buyers pay and Sellers receive.

Tax per unit = Buyers pay per unit - Sellers receive per unit

Tax per unit = $2.50 - $1.75

Tax per unit = $0.75

8 0
3 years ago
You purchase one IBM July 120 put contract for a premium of $5. You hold the option until the expiration date when IBM stock is
grin007 [14]

Answer: Net loss = $2

Explanation:

Given that,

Purchase one IBM July 120 put contract for a premium of $5

IBM stock is at $123 per share on the market

In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.

Here,

Profit = $123 - $120 = $3

But, we have to deduct the premium paid that is $5

Therefore,

Net loss = Profit - premium paid

= 3 - 5

=$2 ⇒ This much loss realize on a the investment.

4 0
3 years ago
______ property refers to property that is the product of any innovative activity, such as a screenplay, a music score, or the c
solniwko [45]

Answer:

Intellectual property

Explanation:

Intellectual property -

It is category of property , which consists of the intangible creations of the human intellect , is referred to as intellectual property.

The example of the Intellectual property are - trade secrets , trademarks ,  patents and  copyrights .

It refers to the outcome of some innovative activity , like music , plays etc.

Hence, from the given information of the question,

The correct term is Intellectual property .

6 0
3 years ago
Allison spends a lot of time socializing with friends on facebook, downloading movies, and completing schoolwork. but her older
notsponge [240]
I would think it would be yes I think
8 0
3 years ago
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