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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.

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Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government

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In the last few weeks, Steve has stopped chatting with his coworkers during work. He takes short lunch breaks, and he is complet

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This is a concentrated productive worker

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2 years ago

For each of the following:

Mama L [17]

Answer and Explanation:

As we know that

The assets, expenses contains debit balance while the liabilities, revenues and stockholder equity contains credit balance

So based on this, the classifications are as follows

Particulars Type of account Normal balance Debit or credit Reason

a. Land Asset debit debit resources on the owners hand

b. Cash Asset debit debit resources on the owners hand

c. Legal Expense = expense debit debit consumption of cost

d. Accounts Receivable Asset debit debit resources on the owners hand

e. Dividends = Equity debit debit distribution made to owners

g. Notes Payable = Liability credit credit obligation made to creditors

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3 years ago

During the year, credit sales amounted to $820,000. Cash collected on credit sales amounted to $780,000, and $15,000 has bee

Katena32 [7]

Answer:

The ending balance in the Allowance for Bad Debts is 20,500 CREDIT

Explanation:

The ending balance of Allowance for bad debts would be the 2.5% of sales

The adjustment is made to get the allowance for Bad Debt match the estimate uncollectible ammounts.

Notice it state "company adjusted for bad debt expense"

This means it debit this account as much as it needed to be to make allowance match the estimate allowance.

The write-off are transaction durign the period. They are irrelevant

So the ending balance is:

2.5% of credit sales of 820,000 = $20,500

It is important to remember that Allowance is a counter-asset account. His normal balance is credit, so the final balance is credit.

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2 years ago

Which of the following ways of investing/saving is the most liquid?

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