Answer:
d.when the services are rendered without regard to when cash is received
Explanation:
Accrual based accounting requires that the services should be performed or rendered associated with the revenue when you recognize it. It does not matter when the cash for the revenue is received. You may received the cash in advance or after some time from you rendering services. As your render the services you can record your revenue.
Answer:
How much net income (or net loss) did Sommer experience for the year?
$11000
Explanation:
earning 280000
Expenses salaries 159000
Expenses rent 85000
Expenses Utilities 25000
Net Income 11000
Answer:
B) market lag
Explanation:
Every profession usually has an average remuneration price, which is considered the market price. Some companies seeking more skilled workers offer compensation above market salary, others, such as the low-cost company XYZ, offer salaries below market level. This strategy is called a market lead. Companies with market lead policies often have higher employee turnover, as finding a higher-paying job tends to change jobs.
Answer:
C)debit Rent Expense, $3,000; credit Prepaid Rent, $3,000.
Explanation:
The amount $18,000 is good for 6 months. That means that the monthly rent would be $3,000 (which is 18,000/6).
On July 31, one month of this prepaid rent has been used and should be recognized as a "Rent Expense" for one month which is $3,000
The credit would be "Prepaid Rent" since the balance of $18,000 should decrease by $3,000, which is the used portion of the prepaid rent.
