Students will probably differ on what to do. Some will contend that since the deferral did not influence the venture it is alright to back date the acknowledgment charge. They will contend by doing favors you are building social capital that may prove to be useful not far off. Others will just consider this to be a honesty issue and inaccurately marking the report is wrong.This is a tricky issue since one method for building IOUs is to look the other way or twist the tenets. Still the way that you are marking your name implies you are not just looking the other way.
Answer:
Contribution margin per unit = $2.3
Explanation:
The contribution margin per unit is the contribution or amount provided by the sale of each unit towards covering the fixed costs of the business. The contribution margin per unit is calculated by subtracting the unit variable costs by the sales revenue per unit.
Contribution margin per unit = Sales revenue per unit - Variable cost per unit
Contribution margin per unit = 4.25 - 1.95
Contribution margin per unit = $2.3
Departmentalization.
This is the process of a company grouping activities into departments.
Answer:
(E) net income is overstated by $225
Explanation:
With omitted income of $540 which is earned shall be added to revenue thus no with this revenue was understated.
Accrued interest payable is a liability to be recorded even if it is to be paid at a later date.
This is an expense to be recognized in Income Statement and a liability in balance sheet.
If not recognized means income is overstated with the same amount.
Net effect is -540 + 225 = $315 revenue understated
Since it is not in option correct option relevant is
(E) net income is overstated by $225.
