Answer:
E) Annuity B has a smaller present value than annuity A.
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity and Compounding of these values is known as the future value of annuity.
Annuity paid at the start of each period is advance annuity and paid at the end of each period is ordinary annuity.
While Calculating the present value of the annuity, the Present value of advance annuity is higher than the present value of ordinary annuity.
The correct answer is false
Financial statements include Income statement, Statement of Owner’s Equity, Balance sheet and Cash flow statement. Statement of Owner’s Equity and Balance sheet are prepared at a particular date at the end of the financial year or period.
Hence, A calendar year reporting company preparing its annual financial statements should use the phrase "at December 31, 2016" in the heading of Statement of Owner’s Equity and Balance sheet.
<span>Conversion Cost
You can call this the cost of changing the goods into buyable items . These costs are the blend of direct work costs in addition to assembling overhead expenses.
You can consider conversion costs as the assembling or generation costs important to change over crude materials into items. Communicated another way, conversion costs are a maker's item or generation costs other than the expenses of crude materials.</span>
Answer:
Answer:
$420 of revenue, $840 of deferred revenue
Explanation:
Data provided in the question
Paid amount = $1,260
Given months = 6 months
Number of months = 2 months
For two months, the revenue is
= Paid amount × number of months ÷ given months
= $1,260 × 2 months ÷ 6 months
= $420
Now the deferred revenue is
= Paid amount - revenue
= $1,260 - $420
= $840
Hence, the revenue is $420 and the deferred revenue is $840
