1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mila [183]
3 years ago
5

Mahogany inc. is a consulting firm. it reports its results on a cash-basis with a fiscal year ending june 30th. mahogany perform

ed services for customers from june 23rd to june 30th, 2016, amounting to $6,000. the customers paid mahogany in full on july 12th. the cash-basis is not in accordance with ________, and mahogany is in violation of the
Business
1 answer:
Dimas [21]3 years ago
6 0
<span>If these are the missing choices:
</span>A  :  the Securities and Exchange Commission, income principle  
<span>B  : GAAP, revenue recognition principle 
C  : GAAP, expense recognition principle 
D  : the IRS, tax principle </span><span>

My answer is: </span><span>B  : GAAP, revenue recognition principle  
</span><span>
The cash-basis is not in accordance with GAAP, and mahogany is in violation of the REVENUE RECOGNITION PRINCIPLE.

GAAP refers to Generally Accepted Accounting Principle. 

It is stated that income must be recognized when it is earned not when cash is received. Because the company is using cash-basis, they will only report income earned on July 12 when they received the money not when they earned it which is before their fiscal year ending June 30. 
They should recognized receivables from customers before closing the books for the fiscal year. </span>
You might be interested in
If the Federal Reserve buys $8,500 worth of securities from non-bank public, and the non-bank public then keeps the payment from
vova2212 [387]

Answer:

c: C increases by $8,500 and the MB increases by $8,500

Explanation:

If the Federal Reserve buys $8,500 in securities from non-bank public and then payment is kept from the bank in form of cash, theC increases by $8,500 and the MB increases by $8,500

5 0
3 years ago
Cost of Bank Loans Gifts Galore Inc. borrowed $1.6 million from National City Bank. The loan was made at a simple annual interes
babymother [125]

Answer: 23456

Explanation: its math

3 0
3 years ago
Bailey Co. changed their accounting for insurance expense from the cash-basis to the accrual-basis in the current year. In Janua
Rina8888 [55]

Answer:

$60,000

Explanation:

Since Bailey Co. changed their accounting for insurance expense from the cash-basis to the accrual-basis in the current year, and in January of the prior year, Bailey recorded insurance expense of $240,000 for the cash purchase of a four-year insurance policy.

Bailey should report the insurance transaction in the current year's financial statements of an amortization of the insurance expense over the four year period, and take account the portion that pertains to the current year.

Therefore = $240,000 / 4 years = $60,000 per year

3 0
3 years ago
Read 2 more answers
Karen Wilson and Katie Smith are looking at the company's health care options and trying to determine how much their net pay wil
Rufina [12.5K]

Answer:

Without cafeteria plan Karen taxable income is 2250 dollars and with cafeteria plan the taxable income is $2135.

Without cafeteria plan Katie taxable income is 2075 dollars and with cafeteria plan the taxable income is $1960.

Explanation:

A married women Karen earns = $2250

Katie single women earn = $2075

Employee contribution to health care = $115

If the Karen decline to participate in the cafeteria then her taxable income is $2250 (wages).

If the Karen accept to participate in the cafeteria then her taxable income is $2250 - $115 (contribution) = $2135

If Katie declined to participate in the cafeteria then her taxable income is $2075 (wages).

If Katie accept to participate in the cafeteria then her taxable income is $2075 - $115 (contribution) = $1960

7 0
3 years ago
A production possibilities​ frontier:
jek_recluse [69]
Shows how participants in the market are linked.
6 0
3 years ago
Other questions:
  • Which tax is normally associated with an individual's death? excise tax consumption tax federal estate tax ad valorem tax?
    13·1 answer
  • A young man is the beneficiary of a huge trust fund 35 years ago. If they had set aside $25,000, how much will be in the trust n
    7·1 answer
  • A company makes three products that have the following characteristics: Product A sells for $75 but needs $50 of materials to pr
    7·2 answers
  • Bruno's is considering changing from its current all-equity capital structure to 30 percent debt. There are currently 7,500 shar
    13·1 answer
  • Dannon Co. reported its expenses of $35,200 on the cash basis. Corporate records revealed the following information: Beginning p
    5·1 answer
  • Glenda works for a telecommunications company and oversees the planning, execution, and closing of any large telecom projects fo
    15·1 answer
  • Why would you want to limit your borrowing when making economic decisions ?
    13·1 answer
  • HELP TAKING TEST!! Suppose you are a treatment specialist and desire additional training and certification. What would the best
    9·1 answer
  • For the month of June, Beeman Corp. estimated sales revenue at $600,000. Beeman pays sales commissions that are 4% of sales reve
    15·1 answer
  • An externality is a benefit or cost associated with an activity that accrues to some third party who is not a direct participant
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!