Answer:
B. July
Explanation:
The principle of revenue recognition arises whenever the income is realized or earned whether cash is collected or not and it also supports the accounting accrual basis. Realizable here means that the customer obtains the product however the payment is made afterward.
So, in the given case, the service is provided in the July month and the same is to be recorded on the July month
The answer is : d: A client that ends a transaction with one business to start another
Answer:
American bakeries will win
Explanation:
In the given case the American bakeries will win.
It is given in the question that the contract between the American Bakeries and the Empire is a requirement contract.
The requirement contract not necessarily means that the two parties will have the trade.
Therefore,
The American Bakeries does not require any purchase from the Empire
Answer:
The increase in savings resulting directly from this change in income is $500
The marginal propensity to save (MPS) is 0.25
Explanation:
In order to calculate The increase in savings resulting directly from this change in income we would have to make the following calculation:
increase in savings resulting directly from this change in income= increase in income - increase in consumption
increase in savings resulting directly from this change in income= $2,000 - $1,500
increase in savings resulting directly from this change in income=$500
The Marginal propensity to save = increase in savings/increase in income =
Marginal propensity to save = $500/$2.000
Marginal propensity to save =0.25
