Answer: b. pays cash before the expense has been incurred.checked
d. receives cash before the revenue has been generated
Explanation:
Here is the complete question:
Deferral adjustments are needed when the business:
a. pays cash after the expense has been incurred.unchecked
b. pays cash before the expense has been incurred.checked
c. receives cash after the revenue has been generated.unchecked
d. receives cash before the revenue has been generated.
Adjustments are made during the end of every accounting period in order to report the revenues and the expenses in proper period at which they occur and also in order to report the assets and the liabilities at their appropriate amounts.
Deferral adjustment is when the revenue or the expense has been deferred or postponed and will therefore be reported on the income statement at a later period.
Previously deferred amounts will show on the balance sheet when a company pays cash before having to incur the expense or in a case whereby the company gets and collects cash before earning the revenue.
When revenues are made or when expenses are incurred, the previously deferred amounts will have to be adjusted and then, the amounts will be transferred to income statement through the use of the deferral adjustment.
Answer:
Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.
<h2>Basic research is the least likely to result in product innovation that have near-term commercial application</h2>
Explanation:
Basic research, is otherwise called pure research. This is the first step in production innovation. This is followed by "applied research", then "innovation development", then to go for "production-sales-market".
The information gathered here will be very light or a starter. It is not possible to foresee all the outcomes or the benefits which is achieved in the basic research.
We cannot even predict the types of research knowledge which might add a value to the future changes
Answer:
The amount recognized as a provision for loss contingency is $220,000
Explanation:
According to the United States Generally Accepted Accounting Principles (US GAAP), the provision for loss contingency should be recognized based on the estimated amount. If the range is given then we should report the lower amount or minimum amount
In the given question, two amounts are given i.e $220,000 and $250,000
So $220,000 should be reported
Answer:
80.88; 7.80; 11.32
Explanation:
Common Stock:
Value = Number × Price
= 5,000,000 × $28
= $140,000,000
Preferred Stock:
Value = Number × Price
= 1,000,000 × $13.50
= $13,500,000
Bonds:
Value = Number × Price
= 20,000 × $980
= $19,600,000
Total value = $140,000,000+ $13,500,000 + $19,600,000
= 173,100,000
Weight of common stock = Respective Value ÷ Total Value
= $140,000,000 ÷ 173,100,000
= 80.88
Weight of preferred stock = Respective Value ÷ Total Value
= $13,500,000 ÷ 173,100,000
= 7.80
Weight of Bonds = Respective Value ÷ Total Value
= $19,600,000 ÷ 173,100,000
= 11.32
