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3 years ago

The following represents the five steps in the revenue recognition model, in random order:

Business

1 answer:

rosijanka [135]3 years ago

3 0

Answer:

The correct order is 5-4-1-3-2

Explanation:

Revenue Recognition is a Generally Accepted Accounting Principle which outlines the specific conditions in which revenue must be recognized and also stipulates ways and when to account for it. The order of the revenue recognition model is:

Identify the contract with a customer.
Identify the performance obligations in the contract.
Determine the transaction price.
Allocate the transaction price to the performance obligations in the contract.
Recognize revenue as the entity satisfies performance obligations.

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A company’s fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product’s sales price is $4.50. W

vredina [299]

Solution:

Given information:

The fixed operating costs are$430,000.

The variable costs per unit are $2.95.

The selling price of the product is $4.50.

Calculation of the break-even point:

The formula to calculate the break-even point is:

Break-even point = Fixed costs / Selling price per unit -Variable costs per unit

= 430,000 / 4.50 - 2.95

= 430,000 / 1.55 = 277,419

Substitute $430,000 for the fixed costs, $2

4 0

3 years ago

A registered representative is considering prospecting a wealthy family member to see if she will open a brokerage account at hi

Pie

Answer:

B. This prospect can be called by the registered representative.

Explanation:

A registered representative may be defined as a person working for a client facing financial firm like the brokerage firm and he acts as the representative for the clients who are trading the investment products as well as securities.

In the context, the prospect can be called by the registered representative. But there are three exceptions that are provided for the cold calls to any individual who are on the national Do not call list :

--- Established business relationship exception.

--- Prior express written consent exception

--- Personal relationship with the associated person exception.

Therefore, option (B) is correct.

3 0

3 years ago

James Smith, the CFO of Blossom Automotive, Inc., is putting together this year's financial statements. He has gathered the foll

xeze [42]

Answer:

Long term debt is $ 166,621

Explanation:

Firstly, we have to classify the available data into their correct headings.

Assets

Cash $ 23,015

inventory $ 210,000

Accounts Receivable $ 141,258

Other current assets $ 11.223

Plant and Equipment (Net) $ 710,000

Goodwill and other assets $ 78,656

Total Assets $ 1,174,152

Liabilities

Accounts Payable $ 163,257

Short term notes payable $ 21,115

Total liabilities without long term debt $ 184,372

Stockholders equity

Common stock $ 311,000

Retained earnings $ 512,159

Total Stockholders Equity $ 823,159

By using the fundamental accounting equation which is

Assets= Liabilities + Owners equity

$ 1,175,152 = $ 184,372 + $ 823,159 = $ 166,621

so the amount of long term debt is $ 166,621, this would balance the accounting equation.

8 0

3 years ago

Elasticity provides a guide to both responsiveness of:

krok68 [10]

Answer:

The correct answer is option a.

Explanation:

Price elasticity of demand measures the change in the quantity demanded of a commodity due to the change in its price.

The change in quantity demanded and price level affects the total revenue as the total revenue is the product of price and quantity demanded.

So when the price is elastic then a change in the price level will cause a greater change in quantity demanded and thus in revenue. Similarly, when demand is inelastic a change in the price level will cause a smaller change in quantity demanded and thus revenue.

3 0

3 years ago

uppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A thr

Ivenika [448]

Answer:

WACC for A: 9.05%

WACC for B: 9.50%

WACC for C: 12.20%

WACC for D: 12.65%

Explanation:

WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)

Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%

Thus WACC for a division will be equal: 3% + 50% x ( 4% + beta of each Division x 9%).

Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.

7 0

4 years ago