It should be base on sales forecast because this will ensure or provide them sales in the future that they could estimate. This will help them to make business decisions for their company that will be of help for them to conclude the effect of these decisions. They are most likely using this forecast with the help of the assessment, policies or schedules in their business.
Answer:
$200,000
Explanation:
Here, in the solution the tax effects are ignored as tax rate is not provided.
Since accrual basis is the acceptable basis, we have:
All the revenues and expenses are to be recognised in the period it belongs to, and not when the actual cash payment is received or made.
Total revenue earned in 2015 = $400,000
Total expense (Wages of employees) for 2015 = $200,000
Therefore, net income for 2015 = $400,000 - $200,000 = $200,000
Note: It is of no relevance that when actual cash was realised from debtors and when actual payment was made to employees.
Answer:
Fit dimension
Explanation:
Utility function is the function which is vital that measures the preferences over a set of the services or goods. Utility states the consumer or the customer satisfaction, receiving the consuming and choosing the service or product.
Consumer utility function is the function which states the satisfaction or contentment of the customer. So, if the firm or the company who is offering the tailor made ( which means as per the requirement of the customer), to the customer that appeals the fit dimension of the utility function of the customer as it captures how well the service or the product matches the characteristics of the given customer.
Answer:
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Explanation:
Revenue is not recorded until the recognition criteria for the recognition of revenue has been met and this includes;
- the corresponding cost incurred in generating revenue can be reliably measured
- the goods or service has been delivered
Given that the service was performed in May, when half of the fee was received in April, the required entries then was
Debit Cash account
Credit Unearned revenue (with the amount received being half payment)
when the service was performed in May,revenue was earned
Debit Unearned revenue (with the amount received being half payment)
Debit Accounts receivable (with the amount yet to be received being half payment)
Credit Revenue (with the amount agreed for the service)
In June when the final payment is received,
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Paying off the full balance.
As a guidelines, your Credit Card APR will be increased if you are responsible in paying all your credit and show that you are a good user.
