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4 years ago

Payments from customers received before performing services for the customers are recorded as

Business

1 answer:

Pachacha [2.7K]4 years ago

7 0

Answer:

B) liabilities.

Explanation:

When the payment is received from the customer before performing the services is known as unearned service revenue

The journal entry is

Cash A/c Dr XXXXX

To Unearned Service revenue A/c XXXXX

(Being advance payment is received)

We simply debited the cash account as cash is received and credited the respective account i.e unearned service revenue

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Consider the single factor APT. Portfolio A has a beta of 0.5 and an expected return of 12%. Portfolio B has a beta of 0.4 and a

Jobisdone [24]

Answer and Explanation:

Given:

For portfolio A

Expected return of 12%

beta = 0.5

Risk premium for A = ?

For portfolio B

Expected return of 13%

beta = 0.4

Risk premium for B = ?

Risk-free rate of return = 5%

Computation:

For portfolio A

12% = 5% + (0.5 × risk premium for A)

risk premium for A = 14%

For portfolio B

13% = 5% + (0.4 × risk premium for B)

risk premium for B = 20%

short position "A"

Long position "B"

8 0

4 years ago

On January 1, Year 2, Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowanc

Sonja [21]

Answer:

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

= $97,000.

Explanation:

a) Data and Calculations:

Accounts Receivable balance on January 1, Year 2 = $16,000

Allowance for Doubtful Accounts balance on January 1, Year 2 = $0

Service Revenue on credit during Year 2 = $104,000

Cash collected from Accounts Receivable = $97,000

Accounts Receivable balance on December 31, Year 2 = $23,000

Allowance for Doubtful Accounts balance on December 31, Year 2 = $2,080 ($104,000 * 2%)

Net Accounts Receivable balance on December 31, Year 2 = $20,920 ($23,000 - $2,080)

b) The $97,000 is the actual cash inflow received from customers during Year 2. It increases the cash inflows and forms part of the operating activities section of the Statement of Cash Flows for Year 2 under the direct method.

8 0

3 years ago

Robert has a monthly income of $1,650.00. His monthly mortgage payment is $675.00. What percentage of his income does Robert spe

makkiz [27]

Answer:B.40.9%

Explanation:

If $675 spend on mortgage and his monthly income is $1650

So the percentage will be:

$675 / $1650 × 100

= 0.409 ×100

= 40.9%

6 0

3 years ago

"You plan on saving money for retirement in 30 years (t=30) at which time, you wish to have saved $1,000,000. In order to do thi

MissTica

Answer:

Explanation:

Giving the following information:

Number of years= 30

Final value= 1,000,000

First, deposit $10000 for ten years (last deposit at t=10).

After ten years, you deposit X for 20 years until t=30.

i= 6%

First, we need to calculate the final value in t=10. We are going to use the following formula:

FV= {A*[(1+i)^t-1]}/i

FV= {10000*[(1.06^10)-1]}/0.06= $131807.9494

We can calculate the amount of money to input every year. We need to isolate A:

A= (FV*i)/[(1+i)^n-1]

First, we need to calculate the final value of the $131807.9494

FV= PV*[(1+i)^n]

FV= 131807.9494*1.06)^20= 422725.95

We need (1000000-4227725.95) $577274.05 to reache $1000000

A= (FV*i)/[(1+i)^n-1]

A= (577274.05*0.06)/[(1.06^20)-1]= 15692.9393

6 0

3 years ago

What are the three conditions for a market to be perfectly competitive? For a market to be perfectly competitive, there must b

xz_007 [3.2K]

Answer:

There are 4 conditions that make a market to be perfectly competitive:

There must be a large number of buyers and sellers, and each one must be relatively small.
All the sellers produce identical products or services.
There are no barriers for entry or exit.
All the buyers and sellers are price takers, no one can set the price at their own will.

5 0

3 years ago