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Natali [406]
3 years ago
11

On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014. Naughton Ltd. does not

yet have the items ordered by the customer, but it expects to receive them shortly. The items will cost Naughton Ltd. $7,500 and the customer will pay $11,000 once the items are delivered. Which entry (if any) to be made on April 17, 2014?
Business
1 answer:
Sloan [31]3 years ago
8 0

Answer:

There is no entry to be made on April 17, 2014

Explanation:

Following The accrual principle - an accounting concept that requires accounting transactions to be recorded in the time period in which they actually occur, rather than the period in which the cash flows related to them occur or the transaction are received.

On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014 and the delivery does not occur yet on that day. I should be occur in May 2014.

Therefore, there is no entry to be made on April 17, 2014. In May, when the company finish delivering, the entry would be made:

1. Debit Cash (or Accounts Receivable) $11,000

Credit Revenue $11,000

2. Debit Cost of goods sold  $7,500

Credit Cash $7,500

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Murljashka [212]

Answer:Another importance of effective communication in business is improved partnership. Communication is crucial when dealing with suppliers and other external business contacts. Sometimes suppliers need to be regularly updated on all the products so they can determine areas that they need to improve.

Explanation:

6 0
3 years ago
Which economic system leaves production decisions completely up to the producers? 1. mixed economy 2. command economy 3. planned
ozzi

Answer:

4. free-market economy

Explanation:

Free-market economy -

A free market refers to the economic system which depends on the demand and supply , where the control of government is nil , is referred to as free - market economy.

It helps to provide all the voluntary exchange occurring in the economy.

The range of the free market economy of a particular country , is present in between very large or completely black market.

Hence, from the given statement of the question,

The correct term is free - market economy.  

7 0
3 years ago
A lawnmower manufacturer estimates that the probability of a fatal accident caused by the design of its product is 1/10,000 and
Wewaii [24]

Answer:

790,000, i.e. $79 x 10,000= 790,000 . Yes, the manufacturer should change the design.  666,667 (when it goes from 1/10,000 to 1/15,000).  It is 500,000 (when it goes from 1/10,000 but ​1/20​,000) . No, the benevolent social planner would not agree with the manufacturer's decision.

Explanation:

In the estimates provided by the manufacturer, the total cost of the design is equivalent to  $79 x 10,000= 790,000. There should be an alteration in the design to remove the necessary precautions. If the probability is different from the estimate provided by the manufacturer, the planner will disagree with the decision made by the manufacturer. For example, a change to 1/15000 will make the total cost to be approximately $666,667.

3 0
3 years ago
Banks that are financial intermediaries generate earnings when they facilitate the transfer of money from savers to borrowers by
lesya692 [45]

Answer: True

Explanation:

Financial intermediaries are the institutions they have been put in place like a building society, bank, or unit-trust company, which are charged with the responsibility of holding funds from the lenders so that loans will be made available to people that wants to borrow.

It should be noted that banks that are financial intermediaries generate earnings when they facilitate the transfer of money from savers to borrowers by paying savers a smaller return than they demand from borrowers. This earning is their charges for the service rendered.

6 0
3 years ago
How can economies of scale benefit you as a customer and society as a whole? Can the taxicab industry, in large cities, be subje
LiRa [457]

Answer:

The answer to this question can be described as follows:

Explanation:

The economy scale with cost activity and total volumes of sales, which lowers the overall product prices as a result, and grows all economies of scale, because consumers purchase the stuff like those, who pay even less than the amount they expect to receive.  

It is the transition, the same saved money it's spent on other commodities and the overall deficit as well as the actual boosting of financial social assistance that generates income as a whole. It also increases outlays and creates more jobs, and benefits people with higher median income levels and a decent standard of living, For example  

Uber often encourages ride-sharing, in which the car is capable of serving 3-4 people simultaneously. This gives a win-win situation to all sides and generates economies of scale. Throughout the market like India, Uber already is introducing it and being extremely successful.

3 0
2 years ago
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