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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.

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Chang Industries has 1,300 defective units of product that already cost $48 each to produce. A salvage company will purchase the

dolphi86 [110]

Answer: Sunk Cost

Explanation:

A sunk cost is an expense which a company or entity has already incurred and which cannot be recovered and so should not be considered when making decisions regarding incremental benefits or costs to an investment.

The $48 had already been incurred to produce the defective units and cannot be recovered so it is a sunk cost that should not be considered moving forward.

7 0

2 years ago

intelligent industries recently purchased a $50,000, 10% 12-month bond. from intelligent’s point of view, this bond would be con

Paul [167]

from Intelligent’s point of view, this bond would be considered a current asset, because it represents a resource that can easily be converted to cash within one year.

A bond is a debt instrument. A bondholder is entitled to regular predetermined interest rate payments and at the end of the bond's tenure, the bondholder would receive the amount invested.

Current assets are assets that are expected to be sold, used, or exhausted through standard business operations with one year.

Examples of current asset are:

cash
cash equivalents
accounts receivable
stock inventory
marketable securities
pre-paid liabilities

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5 0

2 years ago

The type of unemployment associated with recessions is called:

kherson [118]

Answer:

cyclical unemployment

5 0

2 years ago

The CEO and his top managers have asked themselves two important questions: a. do customers value what the company is providin

Doss [256]

Answer:

The correct answer is (D) business model

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3 0

3 years ago

Baxter Inc. owns 90 percent of Wisconsin Inc. and 20 percent of Cleveland Company.

dexar [7]

Answer:

$350,380

Explanation:

Calculation to determine the amount that would appear on the consolidated income

Consolidated income statement.

Sales$1,590,000

($1,000,000+$450,000+$280,000-$100,000-$40,000)

Less :Cost of goods sold ($1,015,000)

($670,000+$280,000+$190,000-$100,000-$25,000)

Less :Expenses ($200,000)

($110,000+$60,000+$30,000)

Dividend income$0

Consolidated net income $375,000

Noncontrolling interests in subsidiaries' income $24,620

Controlling interest in consolidated net income $350,380

Therefore the amount that would appear on the consolidated income will be $350,380

8 0

3 years ago