All categories

3 years ago

The new ASC Topic 606 for revenue recognition:

Business

1 answer:

denpristay [2]3 years ago

5 0

Answer:

addresses when and how revenue should be recognized in contracts that provide both goods and service to customers.

Explanation:

ASC 606 is a new standard that provides guidance on revenue recognition to the companies that provide goods and services to its customers. This standard is for both public and private entities. Earlier there were some variations in the revenue recognition process across different companies. The new standard has now simplified standardization in financial reporting.

You might be interested in

In its first month of operations, Skysong, Inc. made three purchases of merchandise in the following sequence: (1) 320 units at

Sidana [21]

Answer:

(a) $1,760

(b) $1,100

Explanation:

Given that,

Skysong, Inc. made three purchases of merchandise:

(1) 320 units at $5

(2) 420 units at $7

(3) 520 units at $8

Units on hand at the end of the period = 220

(a) Under FIFO method,

cost of ending inventory:

= Units on hand at the end of the period × $8 (From the last purchase)

= 220 × $8

= $1,760

(b) Under LIFO method (Comprise units from the first purchase),

cost of ending inventory:

= Units on hand at the end of the period × $8 (From the first purchase)

= 220 × $5

= $1,100

8 0

3 years ago

General motors targets several different market segments and designs separate automobile makes and models for each. this is an e

Ad libitum [116K]

General motors targets several different market segments and designs separate automobile makes and models for each. This is an example of differentiated marketing.
Instead of focusing on one single target market, this company focuses on multiple segments and types of markets and creates different products for each of them. This, they are improving their profits and taking into consideration their consumers' needs and what they want in their products.

3 0

3 years ago

How many hours of approved continuting education within a 3-year period are required?

jok3333 [9.3K]

Answer:

The correct answer should be: "60 minutes of instruction over around 10 hours certification multiplied by the required years, although this is always dependant on the program".

Explanation:

Approved Continuing Education (ACE) is a kind of continuing literacy in which people search for the best practices to improve work and study. It is always dependant on the program chosen, which means that the subjects, units, schedules, hours, and activities will be according to different patterns. Usually, most of them have a minimum of around 1 hour of instruction, concluding in a 10 hours certification multiplied by the required years, although some others have a concluding certificate of a multiplied 20 hours, such as in the case of most of brazillian certificates for continuing courses.

8 0

3 years ago

Read 2 more answers

Which of the following expenditures should be recorded as an asset? Multiple Choice Maintenance that maintain current benefits.

gulaghasi [49]

Answer:

The correct answer is letter "B": An addition which increases future benefit.

Explanation:

An asset is a resource of economic value. Individuals, companies, and countries expect their own assets to generate economic benefits both now and in the future. Assets may be tangible, such as machinery and land or intangible, including products such as a trademark, a mechanical formula or property rights.

The accounting term addition refers to the subsequent acquisition of a plant, property, or equipment. Therefore, they are to be considered as assets at the moment of recording them.

6 0

3 years ago

Murphy's, Inc., has 85,000 shares of stock outstanding with a par value of $1 per share. The market value is $12 per share. The

nexus9112 [7]

Answer:

The correct answer is $177,955.

Explanation:

According to the scenario, the computation of the given data are as follows:

Capital in excess of par account = $74,500

Common stock = $85,000

Retained earning = $141,500

So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:

Capital after Dividend = Balance sheet amount of Capital + ( Issued additional share × Capital in excess of par per share )

Where,

Issued additional share = 11% × $85,500 = 9,405

And Capital in excess of par per share = $12 - $1 = $11

By putting the value, we get

Capital after dividend = $74,500 + ( 9,405 × $11)

= $74,500 + $103,455

= $177,955

8 0

3 years ago