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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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Answer:

The correct answer is: generativity vs. stagnation.

Explanation:

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3 years ago

A _____ is conducted by marketing researchers to provide background information on other organizations that may have faced simil

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1 year ago

Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be ca

ivanzaharov [21]

Answer:

1. Repainted the office building: This should be capitalized.

2. Added a new wing onto the office building: This should be capitalized.

3. Took their fleet of cars in for servicing (changing the oil, etc.).: This should be expensed.

5. Had an engine rebuilt in one of their fleet cars: This should be capitalized.

4. Added newer electronic locks on the doors in the production building: This should be expensed.

Explanation:

1. Repainted the office building: This should be capitalized. This is because repainting is a repair that will restore the physical structure of the office building and significantly improve it. Since it is a capital improvement cost, it should be capitalized and depreciated like other fixed assets.

2. Added a new wing onto the office building: This should be capitalized and depreciated like other fixed assets since it is a capital expenditure that significantly added to the structure of the office building.

3. Took their fleet of cars in for servicing (changing the oil, etc.).: This falls under repair and should be expensed.

4. Added newer electronic locks on the doors in the production building: This should be expensed. Cost of locks and keys are ordinary expenses that do not improve the physical structure of the production building.

5. Had an engine rebuilt in one of their fleet cars: This should be capitalized. It is a tangible improvement to the fleets of cars and this kind of costs fall under capital expenditures.

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3 years ago

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If the price of one of the products associated with indifference curves increases, all else the same, what is the result?

Rudik [331]

Answer:

The individual is able to get to a lower level of utility

Explanation:

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3 years ago

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Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of

vova2212 [387]

Answer and Explanation:

1. The computation of overhead rate based on direct labor cost is shown below:-

Overhead rate = Overhead applied × 100 ÷ Direct labor cost

= 888 × 100 ÷ 1,200

= 74%

2. The Preparation of job-order cost sheet for the four jobs is shown below:

Particulars Job 86 Job 87 Job 88 Job 89

Beginning balance $6,888 $6,820

Direct materials $3,000 $7,000 $2,100 $1,500

Direct labor $800 $6,000 $900 $500

Applied overhead

is 74% of direct labor $592 $4,440 $666 $370

Total $11,280 $24,260 $3,666 $2,370

3. The computation of ending balances of Work in Process and Finished Goods is shown below:-

Work in process of Job 88 = $3,666

Finished goods = Total of Job 86 + Total of Job 89

= $11,280 + $2,370

= $13,650

4. The computation of the Cost of Goods Sold for March is shown below:-

Cost of goods sold is

= Job 87

= $24,260

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3 years ago