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Vlada [557]
3 years ago
8

XYZ Law Firm provided services for a cllent for $5,000 cash and provided service for another for $10,000 that will pay for the s

ervices in a later time period. How much revenue should be reported on the income statement of the current time.
a. $5000
b. $10,000
c. $15,000
d. $0
Business
1 answer:
Norma-Jean [14]3 years ago
4 0

Answer: The income statement should reflect $15,000.

Explanation: The reason is because accounting procedures are always guided by certain principles or concepts. One of such concepts is the Realization Concept. This simply states that income is considered to have been earned when the goods/services have been dispatched /rendered to the client and the client has incurred liability for such (or has accepted his/her indebtedness). The Accrual Concept is also applicable in the above instance because this concept/principle states that revenues and expenses are recognized as soon as they are earned and incurred and not when money is expended or received. So basically, XYZ Law firm has provided services for two clients. One of them has paid while the other will pay sometime later. Both of them are already recognized as revenue and the current income statement will reflect revenue transactions to the tune of $15,000.

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That statement is  True
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Read the following scenario. Then in the table below, match each of the activities to the management by objectives step it repre
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<u>Solution and Explanation:</u>

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What topic should not be discussed in a salon (Cosmetology) ​
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On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provi
const2013 [10]

Answer:

The requirement of the question is as below:

How much must Alan deposit on January 1? (Round your final answer to the nearest whole dollar amount.)  

What is the interest for the four years? (Round your final answer to the nearest whole dollar amount.)

Alan deposit on January 1 is $ 58,802.39  

Interest for four years is $21,197.61

Explanation:

The first is asking for today's worth of the investment,which is the amount to be invested,this can be computed using the present value as shown below:

PV=FV*(1+r)^-n

PV is the present value

FV is the worth of the investment in 4 years from now which is $80,000

r is the rate of return of 8%

n is the number of years of investment which is 4 years

PV=$80,000*(1+8%)^-4

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4 0
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