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.
In a tenancy contract, a family worked a small part of a large farm in exchange for part of the crop.
<h3>What is a tenancy contract?</h3>
Tenancy agreement or rental contract is a legally enforceable agreement that grants the renter use of a property for a specific usage and time period. The agreement outlines every aspect of the lease as well as the standards and expectations that were mutually agreed upon by the parties.
A lease, which is more common for a fixed time, is different from a rental agreement, which is a contract of the rental between the owner of a property and a renter who wants to have temporary possession of the property. Rental agreements are typically written.
An arrangement between you and a landlord is known as a tenancy agreement. As long as you pay rent and abide by the rules, you are permitted to occupy a property. It also outlines the tenancy's legal terms and restrictions.
A tenancy agreement is regarded as a periodic lease in the business world, with a one-month notice period for termination available to either the landlord or the tenant.
To learn more about tenancy contracts refer to:
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The pricing objective of a firm that adjusts price levels so it can increase sales volume to match organizational expenses is survival.
RETAIL INVENTORY METHOD SHOULD BE USED BY A STORE .
Explanation:
The retail inventory method is an accounting method used to estimate the value of a store's merchandise. The retail method provides the ending inventory balance for a store by measuring the cost of inventory relative to the price of the merchandise. Along with sales and inventory for a period, the retail inventory method uses the cost-to-retail ratio.
Periodic counts might be once every two months or every three weeks, depending on warehouse size and company needs. This will create better visibility than yearly or seasonal options but it also requires more time and manpower. Workers must ensure they are performing inventory consistently between each count.
Answer: See explanation
Explanation:
a. What stock price is expected 1 year from now?
This will be calculated as:
= P0 × (1 + g)
where,
P0 = $40
g = growth rate = 7%
= P0 × (1 + g)
= 40 × (1 + 7%)
= 40 × (1 + 0.07)
= 40 × 1.07
= $42.80
b. What is the required rate of return?
This will be:
= (D1 / P0) + g
where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725
= (D1 / P0) + g
= (1.8725 / 40) + 0.07
= 0.1168
= 11.68%
