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lapo4ka [179]
3 years ago
5

A flower shop makes a large sale for $1,000 on November 30 and delivers the flowers the same day. The customer is sent a stateme

nt on December 5 and a check is received on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,000 revenue recognized in the accounting records?
Business
2 answers:
romanna [79]3 years ago
4 0

Answer:

November 30

Explanation:

According to the revenue recognition principle, revenues are recognized when they are realized or realizable, and are earned no matter when cash is received.

kirill115 [55]3 years ago
4 0

Answer:

Explanation: The $1,000 revenue is recognized the day the sale was made and flowers delivered. Which is the 30th of November.

Following the above transaction, revenue is earned when a transaction has occurred which is the sale of $1,000 worth of flowers delivered the same day.

According to the Generally Accepted Accounting Principle, revenue is earned when there is an exchange of goods or services for cash or on account.

This means that it is not necessary that once the exchange has occurred, cash will be exchanged. It. The transaction can be in cash or on account. Which will end up in the cash/ bank or account receivable

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Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capi
melomori [17]

Answer:

The multiple choices are

a.  $240,000

b. $228,000

c. $216,600

d.$205,770

e. $0

The correct option is E,$0

Explanation:

The funding required from equity is 40% of the projected capital budget of $2000,000 which is expected to be from the profit attributable to stockholders since new issue of shares is not contemplated.

In other words, dividends payable to shareholders is the net income less their counter funding of the project which is computed below:

residual dividends=net income-(equity%*capital outlay)

residual dividends=$300,000-(40%*$2000,000)

                               =$300,000-$800,000=$0

In essence the $300,000 is not even enough as funds expected from equity less alone paying excess as dividend

3 0
4 years ago
For an economy starting at potential output, a decrease in planned investment in the short run results in a(n):
Kruka [31]

Question:

For an economy starting at potential output, a decrease in autonomous expenditure in the short-run results in a(n):

A. increase in potential output

B. recessionary output gap

C. decrease in potential output

D.  expansionary output gap

Answer:

The correct answer is B

Explanation:

A decrease in autonomous expenditure shifts the Planned Aggregate Expenditure curve downward thus creating a lower equilibrium output.

PAE = C + Ip + G + NX

where

PAE  = Planned Aggregate Expenditure

C = consumption

Ip = Investment Spending

G = Government Spending

NX =  Net Export

If an economy has its output equal to its potential, this will create a reduction in short-run equilibrium output leading to a recessionary output gap.

Cheers!

6 0
4 years ago
A marketing campaign to target business travelers includes two advertising buys. One buy cost $4,600 and yielded 220 leads. The
Korvikt [17]

Answer:

$20.90 & $14.88

Explanation:

The average cost per lead is the marketing expense incurred to acquire a new potential customer.  The average cost per or CPL is calculated using the formula total marketing spend / total number of leads. CPL helps identify the most efficient advertising channel.

For the first advertising buy, average cost per lead

=$4,600/220

=$20.90

For the second advertising buy

=$6700/450

=$14.88

3 0
3 years ago
Which of the following is NOT one of the managerial considerations in determining how to compete successfully? How should a comp
hodyreva [135]

Answer:

 Strategy of company concerns are explained as the action plan management,and organisational objectives.

Explanation:      

A.  A more appealing product needs to be offered to rivals for new product.

B. planning of money.

C.  action plan for management function for achieving superior profitability.

D. The company should pursue, the long-term direction management.

E. conservative defense to project

    The action plan management of the company is taking to:

A.  role out a market position,  to attract and satisfy customers, successfully,

perform the operations, and achieve all objectives.

B. conduct a sustainable competitive method and compete against rivals.

C. make your product offering more different and appealing for buyers.

D. conduct the operations.

Organizational objectives are achieved by the following methods:

A. strategic intent

B. statement of the mission.

C. plan of action.

D. business module.

E. strategic vision.

The objectives requires well groomed management to strive to:

A. match your rival businesses products and quality dimensions.

B. short-term success and build profit.

C. realignment in the market.

D. developing lasting success.

E. re-create the bussiness models.

To improve performance, for different avenues:

A. lowering the operating profit margins than rivals to drive sales

growth.

B. achieving analogous of the products.

C. pursing similar personalized customer service or quality dimensions as rivals.

D. Confination of operations to the markets.

4 0
4 years ago
Rex loves to work with his hands and is very good at making small figurines. Three years ago, Rex opened Bronze Age Miniatures (
VLD [36.1K]

Solution:

a. $14,900 AR is $6,250

   AP = 14,900 - 6250 = $8650

∴ $8650 * 25% = 2162.5

( 25% = Positive adjustment that is added for 4 years is 25% for an year)

b. $54,800

Sale to the HRU

c. With the help of deferral method for accrual , the amount obtain is follows:

2 mos. $21 for unit  x 600 units

= $25,200

d. $17,496

Sales for Sci-fi convention

e. Will only deduct money i.e. Considered as noncollectable or else expense for schedule c

= $2100

For the accrual method given income at the time of sale

= $233100

f. Costs of goods which are sold

= $159840

g. As $610 airfare in addition with + $165 convention fee also + $222 for lodging +$68 for cab fee+ $164 for meals

= $1229

h. As the earlier payment qualifies comes under the 12-month rule and which is payment liability thus it meets the economic performance test when it pays the insurance company in august

= $5040

i. For depreciation $8450

j. Economic performance for rent expense happens for the rental period

Due to no expenditure has happened , the 12 month rule is inapplicable

Rex may only deduct rent for 11 months it was renting the property ( 11 months * $1710  )

= $18810

K. As the expended immediately = $41,250 ; $41,250 / 180 months = 229

229 * 12 = 2750 other expense for schedule c

L. As $7900 is un-deduct able due to liability which is not constant

Economic preference for the $4200 occurs as AWU provides services

Also BAM may only cut the portion of this extra credit that relates to

December ( 4200 / 12 ) = $350

M. As tax payment liabilities are economic performance and the deduction occurs BAM pay taxes

= $5100

6 0
3 years ago
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