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Olin [163]
3 years ago
12

The revenue recognition principle says Question 2 options: A) divide time into annual periods to measure revenue properly. B) re

cord revenue only after you have earned it. C) measure revenues and expenses in order to compute net income. D) record revenue after you receive cash.
Business
1 answer:
lisov135 [29]3 years ago
7 0

Answer:

The correct answer is letter "B": record revenue only after you have earned it.

Explanation:

Revenue Recognition is an accounting term that describes how and when a company reports revenue in its ledger. It is also part of the Generally Accepted Accounting Principles (GAAP). Using the accrual accounting method, revenue must be recorded when it is earned not when the company collects the cash proceeding.

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An adjusting entry was made on year-end December 31 to accrue salary expense of $3,000. Assuming the company does not prepare re
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Answer:

Dr Salaries Payable $3000

Dr Salaries Expense $3600

Cr Cash $6600

Explanation:

Preparation of the entries to record the $6600 payment of salaries in January of the following year.

Based on the information given Appropriate journal entries to record the $6600 payment of salaries in January of the following year will be:

Dr Salaries Payable $3000

Dr Salaries Expense $3600

($6600-$3000)

Cr Cash $6600

(To record payment of salaries)

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3 years ago
Olinick Corporation is considering a project that would require an investment of $324,000 and would last for 8 years. The increm
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Answer:

Payback period = 3.5 years

Explanation:

Net income                           $50,000.00

Add: Depreciation expense<u> $42,000.00</u>

Net annual cash inflow     <u>  $92,000.00</u>

Payback period = Initial investment / Annual cash inflows

= $324,000 / $92,000

= 3.5 years

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3 years ago
How can unpaid volunteer work help you choose a career?
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Answer:TRUE

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