Answer:
The Matching Principle
Explanation:
The Matching Principle of accounting holds that revenues should be matched with expenses. Hence the name.
This is to say, that revenues should only be recognized when the associated expenses with those revenues have been spent.
For example, in numeral a), we can see that Norfolk Southern Corporation recieved cash in advance, but it only recognized revenue once it had performed the services associated with that cash collection.
Answer:
19.1% management rate.
Explanation:
Adjusted fee charge per unit = 575
Adjusted fee charge for total unit of product = 575 * 50 = $28750
Net after feel charge on goods = 600000 - 28750 = $571250
15% vacancy and loss rate = .15 * 571250 = $85687.5
Total management fee per year = $114437.5
Percentage rate management fee = (114437.5/600000) *100
= 19.1 %
Answer:
b. credit to Rent Revenue of $3,200
Explanation:
Cash collected in advance results in the the creation of an asset and a liability. Hence a debit to cash account and a credit to deferred revenue. When the revenue is earned, it is recognized as a credit to revenue and a debit to deferred revenue with the amount earned.
Amount earned as at December 31
= 1/3 × $9,600
= $3,200
Entries required
Debit Deferred Rent revenue $3,200
Credit Rent Revenue $3,200
Being entries to recognize revenue earned as at December 31
Answer:
Appropriate language, a cosmetologist can demonstrate this by always speaking in a tone and at a volume that is appropriate for the setting, and never using foul language no matter what.
