Answer:
The explanation and solution of this question is given below in explanation section.
Explanation:
The correct option of this question is :
The broker’s escrow trust account.
This method mostly used in freelancing. Upwork is one of the freelancing websites. It uses escrow trust account where potential buyer deposit the down payment and this deposit payment will be released to a potential client as he completes the contract with the buyer.
Why other options are not correct.
The amount does not directly deposited in the seller's bank account. because it is chances that the seller either will not work or complete the work and take the money away.
A salesperson bank account is also an incorrect option.
Answer:
<u>January 1, 2017</u>
Debit: Accounts Receivable $2800
Credit: Deferred Revenue[Wiring Base] - $1120
Credit: Deferred Revenue[Shelving Unit] - $1680
Narration: Contract Detail and invoicing of the client.
<u>February 5, 2017</u>
Debit Deferred Revenue[Wiring Base] - $1120
Credit Revenue Account - [Wiring Base] - $1120
Narration: Revenue recognition of Wiring Base delivered to customer
<u>February 25, 2017</u>
Debit Deferred Revenue[Shelving Unit]- $1680
Credit Revenue Account - [Shelving Unit] - $1680
Narration: Revenue recognition of Shelf delivered to customer
<u>February 25, 2017</u>
Debit: Bank - $2800
Credit: Accounts Receivable - $2800
Narration: Payment received in settlement of contract fully delivered
Explanation:
The question is an example of a Performance Contract.
A Performance Contract is an agreement with a customer by a vendor to discharge a service or provide goods that are distinct from each other. The accounting for this obligations will therefore be recorded and recognized separately.
It is also important to note that the services or goods must be separately identifiable and the customer must be able to derive from each goods on individually or jointly.
The rule is to
- Recognize the contract and invoice amount with the customer as Deferred Income.
- Identify the distinct obligations and services to be provided.
- Identify the transaction amount for each service or good.
- As each obligation is met, the revenue is finally recognized and transferred from Deferred income.
Answer:
1. Stock markets reflect all available information about the value of stocks AND
2. Changes in stock prices are impossible to predict.
Explanation:
The characteristics that are consistent with the efficient markets hypothesis are that
1. Stock markets reflect all available information about the value of stocks
<em>By definition efficient markets are those whose asset prices reflect all available information.</em>
2. Changes in stock prices are impossible to predict.
<em>The efficient market hypothesis has been described as a backbreaker for forecasters. In its crudest form it effectively says that the returns from speculative assets, are </em><em><u>unforecastable</u></em><em>.</em>
Answer:
$23,000
Explanation:
current annual sales = 49,000 packs
Selling price of course packs = $14 each
variable cost per pack = $12
Earnings = $75,000
Contribution:
= current annual sales × (Selling price of course packs - variable cost per pack)
= 49,000 packs × ($14 - $12)
= 49,000 packs × $2
= $98,000
Fixed costs of producing the course packs:
= Contribution - Earnings
= $98,000 - $75,000
= $23,000
A.Tammy's little sister starts visiting online chat rooms to make friends
