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3 years ago

All of the following situations contribute to the need for a company to recognize deferred revenues, except for:

Business

1 answer:

blondinia [14]3 years ago

7 0

Answer: C) mutually unexecuted contracts between buyers and sellers.

Explanation:

Mutually Unexecuted contracts refer to a situation where both parties being the buyer and the seller have not executed their parts of the bargain or rather fulfilled their parts of the contract.

In such a case, even though legally, there is an obligation to perform due to the signing of a contract, Accounting wise, there is no need to record a liability.

This is why Mutually Unexecuted contracts do not contribute to the need to recognize deferred revenue.

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Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Custo

Iteru [2.4K]

Answer:

d. $90,000, $60,000, $30,000 respectively.

Explanation:

The computation of price allocated is shown below:-

Ratio of values $90,000 : $60,000 : $30,000

= 3 : 2 : 1

Total cost = $180,000

Equipment = $180,000 × 3 ÷ 6

= $90,000

Installation= $180,000 × 2 ÷ 6

= $60,000

Training = $180,000 × 1 ÷ 6

= $30,000

Therefore the Equipment, Installation, Training is $90,000, $60,000, $30,000 respectively.

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3 years ago

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Answer:

Explanation:

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3 years ago

What happens to the money supply during inflation? *

Vikki [24]

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3 years ago

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3 years ago

Read 2 more answers

When a parent uses the equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of t

ValentinkaMS [17]

Answer:

c. Parent company total assets equals consolidated total assets

Explanation:

The equity method is a process of treating investment in an associated companies and is usually applied where the investor holds about 50% of the companies stocks and this has a significant influence in the later management.

They are recorded in the balance sheets and are associated with the companies net incomes and investments. If 80% of the investment is accounted for the subsidiary then the parent company total assess will not be equal o the total assets as it involves taxes.

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3 years ago