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Julli [10]
3 years ago
10

A customer purchased a drill press on November 14 on account from Sears. The drill press was delivered two weeks later. The cust

omer paid for the drill press on December 5. When should Sears record the revenue for this transaction according to the revenue recognition principle? A. December. B. Evenly in each of the two months. C. November. D. One-third in November and two-thirds in December.
Business
1 answer:
agasfer [191]3 years ago
5 0

Answer:

C. November

Explanation:

The revenue recognition principle is an accounting principle that requires revenue to be recorded only when it is earned, not when the related cash is collected. It is a cornerstone of accrual accounting together with the matching principle. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. It means that revenues or income should be recognized when the services or products are provided to customers regardless of when the payment takes place. And since the drill press was delivered two weeks after November 14, the Sear will record the revenue for this transaction in November according to this principle.

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1.1 John Lucy makes wooden boxes in which to ship motorcycles. John and his three employees invest a total of 40 hours per day m
Alex787 [66]

Answer:

3 boxes per day

Explanation:

Productivity refers to output per worker per period. Productivity can be measured per a group of workers or for the entire firm.

Productivity is expressed as follows=units produced/inputs used

for John and group: units produced =120 boxes

Inputs used 40 hours per day

Their productivity = 120/40 hrs

=3 boxes per day

3 0
3 years ago
Paolo and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante. The Shaws report modified AGI
umka21 [38]

Answer: $2,500

Explanation:

The American opportunity tax credit (AOTC) is a measure by the IRS that is a credit for QUALIFIED education expenses paid on Eligible students.

A maximum of $2,500 in credit can be acquired per eligible student.

To qualify for the full amount of this tax credit, your Modified Adjusted Gross Income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).

The Shaws are married and file jointly with a MAGI of $148,000 which is less than the $160,000 limit which means that they are due for the entire credit amount of $2,500 as they pay education expenses for their ONE dependant child assuming Dante meets the various eligibility criteria.

The amount of the Shaws' American Opportunity credit for the year is $2,500.

If you need any clarification, do comment. Cheers.

6 0
4 years ago
The best way to think of presentation slides is... as a medium meant to be used in conjunction with someone speaking. as a stand
geniusboy [140]

Answer: as a medium meant to be used in conjunction with someone speaking.

Explanation:

Presentation slides are meant to augment what the person presenting is saying. They are to provide proof as well as a visual depiction of the words of the presenter so that the audience can understand the presentation better.

For instance, a person giving a presentation on the earrings potential of a business will use charts and tables to show the expected increase. The charts and tables will help show the point that the person is trying to make so that the audience understands.

3 0
3 years ago
The current yield curve for default-free zero-coupon bonds is as follows:
Vesna [10]

Answer:

A) the implied 1 year forward rates respectively 9,8 , 11,81 and 13,83 according to the formular

Explanation:

b) pure expactations true then

1.108²/1.098 - 1 =11.81% for a two year bond

1.118²/1.108 - 1 = 12.81% for a three year bond

The answere: The will be a shift upwards in next years curve.

c) Assume a par of 1000

in the next year a two year zero coupon bond will be a year zero and sell at 1000/1.1181 = 894.37 to get the return we take divide selling prices at year zero the trading price according to ytm is 1000/1.108² =814.55

therefore expected return  894.37/814.55= 9.79%

c2 the zero coupon bond at three year zero is trading at 1000/1.1282 = 886.446 and according to the ytm the coupon is trading at 1000/13.83^3= 715.607

therefore the expected return is

785.711/715.607=9.79%

3 0
3 years ago
Cheyenne Corp. took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in
tamaranim1 [39]

Answer:

$247,800‬

Explanation:

Inventory December 31

physical inventory on December 31                           $200,000

Add: Goods purchased FOB shipping point                $26,400

Add: Goods sold FOB Destination                               <u> $21,400</u>

                                                                                      $247,800‬

FOB Shipping Point - the purchaser gains title to the inventory at the shipping point, so when Pelzer shipped the goods, they belonged to Stallman.

FOB destination - means the seller maintains title until the merchandise reaches its destination, so since the goods have not reached their destination, the goods still belonged to Stallman

7 0
3 years ago
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