Answer:
$2.835 in March and $0 in May.
Explanation:
As per the data given in the question,
The actual method of accounting is that the revenue is not recognized in the period when the actual cash is received but the period in which it is earned.Hence, May-31 income statement will not recognize any part of revenue and March-31 income statement will recognize the whole revenue of $2.835 million.
Hence, $2.835 in March and $0 in May.
Answer: Franchise
Explanation: Franchise is a type of business by which the owner of a commodity attains supply through affiliated sellers.
In this case, a company authorizes its practical knowledge, techniques, mental power possession, use of its company prototype, trademark and rights to sell its branded commodities and services to another company or individual, typically called a franchisee.
Also, the franchisee pays certain payments while concurring to comply with certain responsibilities usually set out in a franchise treaty.
Answer:
$21,420
Explanation:
The total expense in year 1 was $21000
the inflation rate is 2 percent. it means prices will increase by 2 percent.
The amount to be spent in year 2 will be more by 2% than year 1
If year expenses are 100%, year 2 expenses will be 102%
Actual year 2 expense will be 102% of $21,000
=102/100 x $21,000
=1.02 x $21,000
=$21,420