All categories

1 year ago

In accrual basis accounting, revenue is recorded when the seller ______.

Business

1 answer:

Softa [21]1 year ago

6 0

in accrual basis accounting, revenue is recorded when the seller's product is shipped or service is provided.

Revenue is the money made from regular business operations and is calculated by multiplying the average sales price by the quantity of units sold. In order to calculate net income, costs must be deducted from the top line (or gross income) figure. On the income statement, revenue is also known as sales.

Even though the cash for the transaction has not yet been exchanged, accruals are earnings or expenses that have an influence on a company's net income on the income statement. Due to the non-cash assets and liabilities they involve, accruals also have an impact on the balance sheet.

To know more about Accrual-based accounting CLICK HERE:

brainly.com/question/13464862

#SPJ4

You might be interested in

A broker's listing agreement specifies that a 5Â½% commission is to be paid on the sale price. The sales associate for the firm

tino4ka555 [31]

The amount that the sales associate earn if she sells the property for $369,000 is $11,162.25.

Sales associate's commission

First step find the total commission

Total commission=$369,000 sale price × .055 rate

Total commission= $20,295

Second step find the sales associate's commission

Sales associate's commission=$20,295 total commission × .55 split

Sales associate's commission=$11,162.25

Inconclusion the amount that the sales associate earn if she sells the property for $369,000 is $11,162.25.

Learn more about sales associate's commission here:brainly.com/question/930797

5 0

2 years ago

You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maintenance m

SIZIF [17.4K]

Answer:

$50

Explanation:

The computation of the stock price level is shown below:

Maintenance margin = Number of shares purchased × price - loan amount ÷ Number of shares purchased × price

30% = 100 shares × price - $3,500 ÷ 100 shares × price

30% × 100 shares × price = 100 shares × price - $3,500

30 × price = 100 shares × price - $3,500

After solving this, the price would be $50

And, the loan amount equal to

= Number of shares purchased × per share price × initial margin

= 100 shares × $70 × 50%

= $3,500

3 0

3 years ago

A type of check that has a bank's guarantee of payment is a

ziro4ka [17]

I think it's a cashier's check...(Don't mark my words)

6 0

3 years ago

Read 2 more answers

Today only, a table is being sold for $217 . this is 62% of its regular price. what was the price yesterday?

Troyanec [42]

If yesterday's price was the regular price then the equation $217=62%x can be used to solve for x. so x = $217/0.62=$350. To check the answer, multiply $350 by 0.62 = $217. In other words, x is the unknown regular price so 0.62 times x = $217 and then cross multiplying means dividing $217 by 0.62, to get the answer.

8 0

3 years ago

Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing an

Irina18 [472]

Answer:

the artist should make the elegant version since the expected profits are higher

Explanation:

elegant version:

expected revenue = (400 x $150 x 40%) + (350 x $110 x 60%) = $47,100

expected profits = $47,100 - $30,000 = <u>$17,100</u>

deluxe version:

expected revenue = (500 x $110 x 40%) + (450 x $70 x 60%) = $47,100

expected profits = $42,250 - $30,000 = $12,250

5 0

3 years ago