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3 years ago

Which of the following statements are correct?

Business

1 answer:

ahrayia [7]3 years ago

8 0

Answer:

For accrual basis:

(1) record revenues when earned

For cash basis:

(3) record revenue when cash is received

Explanation:

As per accounting systems:

Accrual basis follows the periodic system in which revenues and expenses are recorded as and when they are incurred, as for revenue when it is earned, and for the period to which it relates is recorded at that time,

As in this it does not matter that cash is received in advance or after some period, the transfer of risk and reward matters.

In the case of cash basis all expenses and revenues are recorded as and when there is any cash inflow or outflow related to the same.

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An analysis of the competition suggests the average retail selling price of an electronic game is $89. The owner of a computer a

sukhopar [10]

Answer:

Yes, she should buy

Explanation:

The cost price of the electronic games is $55 per unit.

The selling price is $89 per unit.

The margin is dollar = selling price - cost price

=$89- $55

=$34

As a percentage, the margin will be

=34/55 x 100

=61.82%

If her normal margin is 35%, then the offer is good for her.

4 0

3 years ago

The Back Room just paid an annual dividend of $1.50 a share. The firm expects to pay dividends forever and to increase the divid

umka2103 [35]

Answer:

$26.05

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid = d0 x (1 + growth rate)

d0 = dividend that was just paid

r = cost of equity

g = growth rate

1.5 x (1.045^6) / 12 - 4.5 = $26.05

6 0

3 years ago

Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Wal

kupik [55]

Answer:

$0.20 or 20 cents for every dollar invested as assets

Explanation:

To determine how many dollars (or cents) of net income did Walk Co. generate for every dollar of assets invested we have to;

divide Walk Co.'s net income by its total assets = $40,000 / $200,000 = $0.20 or 20 cents. This is called the

6 0

3 years ago

When buying highly technical, few-of-a-kind products such as hydroelectric power plants, governments have found that general con

Lubov Fominskaja [6]

Answer:

Cost-plus-fixed-fee pricing

Explanation:

Cost-plus-fixed-fee pricing is when the contractor specifies the expenses of a project and a fixed fee for the services that provides which allows the contractor to earn a profit. In this type of pricing, the overall cost of the project is determined at the end and all the authorized costs are paid to the contractor in full. According to this, the answer is that these contractors use cost-plus-fixed-fee pricing to compensate them for any cost overruns.

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3 years ago

Carly’s Clips charges for their grooming services based on the following:________.

Novay_Z [31]

Answer: $256

Explanation:

Using time and materials pricing, the total price for a job requiring 3 direct labor hours and $54 of materials will be calculated as:

Materials = $54

Add: Materials markup = 30% × $54 = 0.3 × $54 = $16.2 = $16

Add: Labour = 3 × $62 = $186

Total price of job = $256

7 0

2 years ago