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4 years ago

Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when

Business

1 answer:

luda_lava [24]4 years ago

6 0

Answer:

B. The selling price of the product and the consideration promised in the contract differ significantly.

Explanation:

"While determining the transaction price, an entity shall adjust the amount of consideration with respect to the time value of money, if the timing of payment to be made by customer under the contract provides some signiﬁcant beneﬁt of ﬁnancing to the customer or the entity for the transfer of goods or services to the customer. The Signiﬁcant ﬁnancing beneﬁt could be explicit or implicit in the contract.

The idea behind the signiﬁcant ﬁnancing component is that entity should consider the revenue based on the price that a customer would have paid at the time of transferring the goods or services to the customer by the entity i.e. Cash Selling Price (If the payment was made immediately)."

Reference: Prasenjit. “ASC 606: Step 3 – Determining the Transaction Price.” RevGurus, 25 Mar. 2019

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Shalnov [3]

Answer:Explained below

Explanation:

Auditor is one who conducts audit.Auditors are professionals who evaluate the reports of companies to safeguard the rationality and legality of their financial records. They can also take action in consulting role to recommend possible risks .

The primary Purpose could be Classification and Understandability & Valuation and Allocation of resources or assets

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3 years ago

Harold Manufacturing produces denim clothing. This year, it produced 5,260 denim jackets at a manufacturing cost of $42 each. Th

Mice21 [21]

Answer:

Incremental net income = $42,080

Explanation:

Note the the income would be that which result from the alternative action with the highest net income Note that the manufacturing cost of $12 per unit is not relevant for the purpose of this decision and hence would not form part of the analysis

Option one: Outright sale

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Option 2: disassembling

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Cost of disassembling ( 31,800)

Net income 31,320

Option 3: Reworking

Sales revenue ($45.00× 3,050) 137250

Cost of reworking (102,200)

Net income 35,050

The outright option gives the highest net income hence should be considered.

Incremental net income = $42,080

7 0

3 years ago

Johns Company operates in three different industries each of which is appropriately regarded as a reportable segment. Segment No

hichkok12 [17]

Answer:

$100,000

Explanation:

Contribution Margin=Sales Revenue − Variable Costs

For segment 1

Sales = $500,000

Variable costs = $400,000

Contribution Margin = $100,000

Therefore the contribution margin presented for segment number 1 is $100,000 while the attributable common cost for segment 1 will be (0.6*320,000) = $192,000

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4 years ago

___________ refers to the amount of output generated with a given amount of input, e.g., the number of pizzas produced per worke

Karolina [17]

Answer:

C. Productivity

Explanation:

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3 years ago

You paid $9,700 for a $10,000 par value Treasury bill maturing in 3 months. What is the holding-period return if you hold the tr

Novay_Z [31]

Answer:

The holding-period return if the treasury bill is held until maturity is:

= $300.

Explanation:

a) Data and Calculations:

Par value of Treasury bill = $10,000

Price paid for the bill = 9,700

Holding-period return = $300

Maturity period of the bill = 3 months

b) The holding-period return, otherwise called the yield, is the total return earned on the Treasury bill investment during the 3 months that it is held. The holding period is the 3-months time the Treasury bill is held by an investor, which corresponds to the period between the purchase date and sale date of the Treasury bill.

4 0

3 years ago