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baherus [9]
3 years ago
12

In February of each year, the Carlton Hotel holds a very popular wine tasting event. Tickets must be ordered and paid for in adv

ance, and are typically sold out by November of the preceding year. The realization principle indicates that the revenue from these ticket sales should be recognized in the period in which the:A. Order is placed.B. Wine tasting is held.C. Payments are received.D. Expenses associated with the wine tasting are paid in full.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Business
1 answer:
vodka [1.7K]3 years ago
8 0

The realisation principle indicates that the revenue from these ticket sales should be recognised in the period in which the Wine tasting is held.

Explanation:

It complies with Revenue Recognition Accounting Policy 9. It will be a burden for the organization, until the moment services are provided for which the money is taken.

Revenue recognition is a GAAP which defines the specific conditions under which revenue can be recognized. Revenue recognition is a generally accepted concept of accounting. In fact, when the crucial event happened, profits are remembered and the value of the profit for the company is tangible.

For Example, when a product is sold, the profit accounting is relatively straightforward, and the customer pays the products. Nevertheless, the fact that a company takes a long amount of time to manufacture a commodity will confuse accounting. Consequently, there are a number of situations in which the concept of acknowledgment of profit may be excepted.

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Answer:

a

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Chancellor Ltd. sells an asset with a $2.4 million fair value to Sophie Inc. Sophie agrees to make seven equal payments, each to
sattari [20]

Answer:

The Annual payment to be made is $445,327

Explanation:

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4 0
3 years ago
Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles. Budgeted Costs Cost Driver Machine
Norma-Jean [14]

Explanation:

The identification of the cost driver is presented below:

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7 0
3 years ago
Which of the following choices is not considered a revenue producing business enterprise?
exis [7]
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3 0
3 years ago
For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions): Sales $25,700 Food a
Aleks [24]

Answer:

a. $9,338

b. 0.363

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a. Contribution Margin  = Sales - Variable Cost

Where Sales = $25,700

Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses

V.C. = 8,982 + 6,500 + 40% * 3,700

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=$9,338

b. McDonald's contribution margin ratio  = Contribution Margin / Sales

= $9,338 / $25,700

= 0.363

6 0
3 years ago
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