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Nina [5.8K]
3 years ago
6

A company received an order from a customer in June for services to be provided. Those services were provided in July, and the c

ustomer paid the full amount in August. According to the revenue recognition principle, in which month should the company record revenue?
A. June.B. July.C. August.D. Evenly over the three months
Business
1 answer:
scZoUnD [109]3 years ago
8 0

Answer:

B. July

Explanation:

The principle of revenue recognition arises whenever the income is realized or earned whether cash is collected or not and it also supports the accounting accrual basis. Realizable here means that the customer obtains the product however the payment is made afterward.

So, in the given case, the service is provided in the July month and the same is to be recorded on the July month

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A British-made automobile is priced at £20,000 (20,000 British pounds). A comparable U.S.-made car costs $27,200. One pound trad
ira [324]

Answer:

The overview of the given situation is described in the explanation section below.

Explanation:

(1)...

The actual exchange rate from either the viewpoint of U.S:

= 0.867

<u>Working:</u>

As per the British automobiles cost will be:

=  £20,000 x $1.50/£ or $30,000

And the US car's cost compares to either the Uk car will be:

= \frac{26,000}{30,000}

= 0.867

It demonstrates that the US car seems to be cheaper or affordable.

(2)...

From either the Uk view the actual exchange rate will be:

= 1.154  

<u>Working:  </u>

US automobile worth in pounds is equivalent to,

= \frac{26,000}{1.50}

= £17,333.  

The Uk vehicle's price compared to the US car currently amounts to,

= \frac{20,000}{17,333}

= 1.154

(3)...

Cars or Automobiles are competitively priced in the US.

<u>Explanation:</u>

British vehicle exceeds,

= \frac{20,000}{17,333}

= 1.154 compared to the U.S car.

It also means that perhaps the British car is much more costly, and as such the U.S. car becomes valued more highly competitive.

3 0
3 years ago
Product costs are always expensed in the period when they are incurred. (2pts) true false
grigory [225]
This is going to be false
6 0
3 years ago
The total of all outputs produced by the transformation process divided by the total of the inputs​ is: A. utilization. B. defin
SIZIF [17.4K]

Answer:

The correct answer is letter "C": multifactor productivity.

Explanation:

Multifactor productivity refers to how the combination of <em>labor </em>and <em>capital </em>is translated in the maximization of manufacturing goods or rendering services. Changes in the factor of multifactor productivity reflect fluctuations in <em>management, adjustment costs, and economies of scale</em>.

5 0
3 years ago
This year Andrews achieved an ROE of 24.5%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, as
den301095 [7]

Answer:

It would decrease

Explanation:

Return on equity is an example of a profitability ratio.

Profitability ratios measure the ability of a firm to generate profits from its asset

Using the Dupont formula, ROE can be determined using:

ROE = Net profit margin x asset turnover x financial leverage

ROE = (Net income / Sales) x (Sales/Total Assets) x (total asset / common equity)

If profit margin reduces and asset turnover and leverage remains the same, ROE would decrease

5 0
3 years ago
Why is nominal value important ?
lara31 [8.8K]

Answer: A preferred stock's nominal (par) value is important in that it is used to calculate its dividend while the nominal value of common stock is an arbitrary value assigned for balance sheet purposes. In economics, nominal value refers to the current monetary value and does not adjust for the effects of inflation.

Explanation:

Hope it helps

3 0
3 years ago
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