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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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Prepare a marketing plan to market yourself. Visit a career website and locate three careers listed on the website and determine

enyata [817]

Answer:

kailangan meron ka companies

Explanation:

advance mag isip wag dto

8 0

3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below:

Paladinen [302]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is $163,000.

Explanation:

The contribution margin is the sales minus total variable cost. This can be calculated as follows:

Units of books sold = Sales / Selling price per book = $900,000 / $60 = 15,000

Variable selling expenses = Units of books sold * Variable selling expenses per book = 15,000 * $5 = $75,000

Variable administrative expenses = Sales * 3% = $900,000 * 3% = $27,000

Total variable cost = Cost of goods sold + Variable selling expenses + Variable administrative expenses = $635,000 + $75,000 + $27,000 = $737,000

Contribution margin = Sales - Total variable cost = $900,000 - $737,000 = $163,000

Therefore, the contribution margin for Sam's Bookstore for the first quarter is $163,000.

5 0

3 years ago

Al Dente Pasta Company overstated its inventory by $10 million at the end of 2021. The discovery of this error during 2022, befo

MAXImum [283]

Answer:

Retained earnings would be debited and inventory would be credited for $10 million each.

Explanation:

In the given scenario Al Dente Pasta Company overstated its inventory by $10 million.

This is an overstatement of assets of the company.

This also gives an understatement of the retained earnings of the company.

Adjusting entry in 2022 will now require Retained earnings would be debited and inventory would be credited for $10 million each.

7 0

3 years ago

if the marginal propensity to save is 0.12 the marginal propensity to consume(mpc) is the multiplier is

Vlad [161]

Answer:

If the marginal propensity to save is 0.12, the marginal propensity to consume(mpc) is 0.88, and the multiplier is 8.33.

Explanation:

From the question, we are given the following:

mps = Marginal propensity to save = 0.12

The marginal propensity to consume (mpc) and the multiplier can therefore be calculated as follows:

mpc = 1 - mps ........................ (1)

Substituting the values for mps into equation (1), we have:

mpc = 1 - 0.12

mpc = 0.88

Also, we have:

Multiplier = 1 / mps ..................... (2)

Substituting the values for mps into equation (2), we have:

Multiplier = 1 / 0.12

Multiplier = 8.33

Therefore, if the marginal propensity to save is 0.12, the marginal propensity to consume(mpc) is 0.88, and the multiplier is 8.33.

8 0

3 years ago

If a firm accepts less than all of its prospective projects with positive NPVs when evaluated at their own risk-adjusted costs o

gtnhenbr [62]

Answer: True

Explanation:

Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.

In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.

The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.

Therefore, The given statement is true.

3 0

3 years ago