A gym offers one-year memberships for $99 and requires customers to pay the full amount of cash at the beginning of the membership period. For the gym, this is an example of a(n): Deferred revenue.
Since the whole amount is received in advance (before the membership periods) it cannot be charged as revenue in the income statement. This would be treated as deferred revenue, till the membership period is over. Such deferred revenue is a liability of the gym and must be recorded in the Balance Sheet.
Cash-based accounting does not record depreciation expenses. Cash Accounting does not record journal entries when sales are made on an account. Generally accepted accounting principles (GAAP) require you to use the accrual basis of accounting.
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Answer:
Sales revenue 728,400
Sales R&A (25,320)
Delivery Expense (12,780) * considered freight-out
sales discount <u> (12,380) </u>
net sales: 677,920
sales revenue 728,400 debit
income summary 728,400 credit
--to close revenues accounts--
income summary 50,480
Delivery Expense 12,780
Sales Returns and Allowances 25,320
Sales Discounts 12,380.
--to close the contra account to sales---
Income summary 677,920
Retained Earnings 677,920
Explanation:
The same basic formulas used for materials and labor are used to analyze the variable portion of manufacturing overhead, which means Option B.
<h3>What is
manufacturing overhead?</h3>
manufacturing overhead serves as the addition of of all the indirect costs during the manufacturing process of the product.
An this It is added to the cost as well as direct material and direct labor costs after the final product.
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<span>“What is a risk assessment?” This post aims to allow you to answer basic questions on risk assessments such as “a definition of risk assessment”, “why do risk assessments?”, “when to do a risk assessment?” and “how to do a risk assessment?”.
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Answer: Option (a) is correct.
Explanation:
Figure attached with this answer shows the two curves, namely, average product curve and marginal product curve.
Marginal product refers to the change in the total output divided by the change in the quantity of inputs used.
Average product is calculated by dividing the total output produced with the quantity of inputs or factors of production used.
The relationship between marginal product and average product is explained by three phases:
(1) Average product is rising,
Marginal product is greater than the average product.
(2) Average product is maximum,
Marginal product is equal to average product.
(3) Average product is falling because of diminishing marginal utility,
Marginal product is less than the average product.
