1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Liono4ka [1.6K]
3 years ago
8

20. Otto's Tune-Up Shop follows the revenue recognition principle. Otto services a car on August 31. The customer picks up the v

ehicle on September 1 and mails the payment to Otto on September 5.Otto receives the check in the mail on September 6. When should Otto show that the revenue was recognized? A) August 31 B) August 1 C) September 5 mber
Business
2 answers:
ss7ja [257]3 years ago
5 0

Answer:

A) August 31

Explanation:

The revenue recognition principal states that a company should only recognize revenue when it has substantially completed the earning process. This earning process can be completed either before or after receiving the payment. If it is completed before receiving payment, an accounts receivable is created. But if the good or service was paid in advance, an accounts payable is created until the good or service is delivered or completed.

In this case, Otto completed the earning process either August 31 or September 1, it is not clear when the car service was completed, but since September 1 is not an option, then the only possible option is August 31.

Allushta [10]3 years ago
4 0

Answer:

Option A-The revenue must be recognized on 31 August.

Explanation:

The accrual concept says that the income must be recognized when they are earned not when the amount is received and expenses when they are incurred not when they are paid.

So according to accrual concept, the entity must deliver its share to recognize sales that is servicing the car. When the entity will service the car then it should recognize the revenue otherwise not. So in accrual basis accounting the date of payment is irrelevant for recognition of revenue and expenses.

You might be interested in
A central bank acts as a lender of last resort especially in times of financial crisis. What is the purpose of this function
mr_godi [17]

Answer:

The purpose of the function is to lend the people indeed.

Explanation:

a central bank help to keep our money and give a loan

7 0
3 years ago
Given that they often competen t powerful companies, it is imperative that entrepreneurs:
Step2247 [10]

Answer:

Use strong judicial tools as patents and copyrights. Be flexible to enter the market. Understand that is more expensive to acquire a new client that to maintainn and excisting one.

Explanation:

The powerfull companies can make a product or service look bad (sabotage) or can change its prices to eliminate possible competitors from the market, they also have a huge share of the market so there are not many avilable new clients to gain.

3 0
3 years ago
Information on Psi Phi Inc.âs three products are as follows: A B C Unit sales per month â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦
VikaD [51]

Answer:

fgoooo

Explanation:

fhgfh can you give me mola

4 0
3 years ago
Countess Corp. is expected to pay an annual dividend of $4.57 on its common stock in one year. The current stock price is $73.59
Serjik [45]

Answer:

The cost of equity is 9.91%

Explanation:

The constant growth model of the DDM is used to calculate the price of the share or the fair value per share based on a constant growth in dividends and the required rate of return which is also known as cost of equity.

Plugging in the available values in the formual we can calculate the cost of equity or the required rate of return.

73.59 = 4.57 / (r - 0.037)

73.59 * (r - 0.037) = 4.57

73.59r - 2.72283 = 4.57

73.59r = 4.57 + 2.72283

r = 7.29283 / 73.59

r = 0.0991 or 9.91%

3 0
3 years ago
Read 2 more answers
To edit a sentence for errors in​ spelling, a writer should
Naddika [18.5K]

Answer:

B

Explanation:

A is valid but i would be more worried about B when editing C and D say to fix something but it never says anything is wrong so the wording makes those answers wrong/very highly unlikely

3 0
3 years ago
Read 2 more answers
Other questions:
  • In the united states about ________ of all jobs are in consumer services.
    10·1 answer
  • Which is the most common method for calculating credit card balances? A. Previous balance method, B. Adjusted balance method, C.
    11·2 answers
  • Ok 1 more!!!!!!!!!!!!!!!!!!!!
    9·1 answer
  • Net exports equal GDP minus domestic spending on:
    12·1 answer
  • As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doubtful accounts of $27
    15·1 answer
  • Waterway Corporation purchased a truck at the beginning of 2020 for $59,500. The truck is estimated to have a salvage value of $
    11·1 answer
  • 1. Which account balance is always reported at the same amount on the parent's balance sheet and on the consolidated balance she
    5·2 answers
  • The city council is getting ready to build a new power plant, which is expected to bring jobs to the community, but also generat
    14·1 answer
  • FTYZ Transport Inc. was supposed to pay wages amounting to $1,500 in March, which was the last month of its accounting period. H
    7·1 answer
  • If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acqu
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!