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3 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]3 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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NISA [10]

Answer:

differences in national cultures

Explanation:

Based on the scenario being described it can be said that the most likely challenge that Globe Cars is likely to face would be differences in national cultures. This is mainly due to the fact that each company originates from different countries with different cultures and beliefs. Therefore there is a high possibility that some of the values of each culture may contradict with the others.

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3 years ago

The following is a condensed version of the comparative balance sheets for Sweet Corporation for the last two years at December

notsponge [240]

Answer:

Cash flow from operating activities

Net income $352,000

Adjustment to reconcile net income to

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Net cash used investing activities -$77,800

Cash flow from financing activities

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6 0

2 years ago

In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was

natali 33 [55]

Answer:

b. Cash from Financing Activities
d. Bonds Payable
e. Net Income

Explanation:

Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.

Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.

Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.

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2 years ago

Today, when a customer orders merchandise from an online vendor, the vendor usually sends an immediate order confirmation messag

Irina-Kira [14]

Answer: The second message is a type of advanced shipping notice.

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In this case the vendor sent an immediate order confirmation message by e-mail and within a day or two, a second message stating that the order is in the mail.

Therefore, the correct option is (c)

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2 years ago

In the language of macroeconomics, investment refers to Select one: a. saving. b. the purchase of new capital. c. the purchase o

N76 [4]

Answer:

The correct answer is letter "B": the purchase of new capital.

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In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include stocks, bonds, real estate, mutual funds and, to a lesser degree, commodities, annuities, and options.

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3 years ago