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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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Acloe Inc., a nutrition bar manufacturing company, plans to commence its budget preparation. The management of the organization
mariarad [96]

Answer:

bottom-up

Explanation:

According to my research on different financial strategies, I can say that based on the information provided within the question Acloe Inc. is most likely to adopt the bottom-up budgeting approach. This approach focuses on attempting to determine costs of each department in an organization and then total up all of the departments. Which is what is being done in this situation.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
Many gas stations with convenience stores sell gas at, or close to, cost. In these organizations, profit comes from the convenie
OLga [1]

Answer: build traffic.

Explanation:

The pricing model employed by such gas stations is built in a way to drive traffic. traffic is important and has an impact in many ways  1. low traffic can bog your business down at some level.

2. When you increase your traffic along with the quality of the visitors, the better you will be able to increase your sales.

traffic in this context refers to customers the more you are able to pull customers over the more sales you make.

4 0
3 years ago
What happens when the Federal reserve buys a treasury bond
alukav5142 [94]

Answer:

If the Federal Reserve buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. Conversely, if the Federal Reserve sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

7 0
3 years ago
Which one of the following statements correctly states a relationship?
Anon25 [30]

Answer:

D

Explanation:

i think

4 0
3 years ago
Larry Bar opened a frame shop and completed these transactions: 1. Larry started the shop by investing $40,000 cash and equipmen
Alla [95]

Answer:

($39,700)

Explanation:

Cash outflows:

($40,000) exchanged for common stock.

($1,200) used to pay salaries.

Cash inflows:

$1,500 received from a sale

So we have  a negative 41,200 representing cash outflows, and only $1,500 in cash inflows (we are not told if the $200 billed were already received so I will leave them out). Making a simple arithmetic operation, we obtain the answer:

Cash balance = -$41,200 + $1,500

                       = -$39,700

6 0
3 years ago
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