Answer:
Income
Explanation:
A budget shows a plan of how one will spend their income. It is, therefore, a plan of expenditure. A budget shows total expected income on one side and projected expenditure on the other side. The budget is balanced when income and expenses are equal.
Diego is correct because the loan has to be paid in full by a specific date.
Given:
net sales = 53,404,000,000
Average total assets = 16,302,000,000
Total asset turnover is calculated by divided net sales by the average total assets.
Total asset turnover = net sales / average total assets
T.A.O = 53,404,000,000 / 16,302,000,000
T.A.O = 3.2759 OR 3.3
The total asset turnover indicates the company's ability to efficiently deploy its asset in generating revenue.
The value of the goods produced is recorded for the the current year GDP. The year of production not the year of the sale is where the product being produced needs to be recorded within. If it is sold the following year, the sale will then be recorded in the year it is sold in.
Answer:
The correct word for the blank space is: expense recognition principle.
Explanation:
The expense recognition principle establishes when expenses and revenues must be recorded in the accounting books of a company. Under the accrual basis of accounting method, revenues are recognized when earned and expenses whenever consumed. While using the cash basis accounting method, revenues are recognized when earned and expenses when they are paid to suppliers not when invoices are sent.
In both cases, <em>expenses and revenues are recognized during the same period when they take place. That is the reason why the direct write-off method fails to fulfill the expense recognition principle because bad debt can be recognized as an uncollectible account not necessarily in the same period where the debt instrument was issued.</em>
