1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require founders to give up large ownershi
Westkost [7]

Answer:

B. False

Explanation:

As the name suggests that crowdfunding refers to the funding for a project by having a small amount from the public at large in an internet

Since in the question it is mentioned that the founders should put efforts for giving the high stake of ownership with respect to high contributors before raising the funds to launch a product in the market

But this above requirement should not be necessary

Therefore the given statement is false

5 0
3 years ago
Which of the following statements is​ TRUE? A. By INCREASING the number of payments per​ year, you BOOST your total cash outflow
dolphi86 [110]
B I’ve seen the question before
6 0
3 years ago
A disadvantage of adding a salad bar to a school lunch menu would be ?
bearhunter [10]
The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
5 0
3 years ago
Read 2 more answers
Turner, a successful executive, is negotiating a compensation plan with his potential employer. The employer has offered to pay
zzz [600]

Answer:

b. If the employer accepts Turner's counteroffer, Turner will recognize as gross income $55,000 per month [($480,000 + $180,000)/12].

Explanation:

Given that

Turner annual salary = $600,000

Counteroffer to received a monthly salary = $40,000 or $480,000 annually

And, $180,000 bonus in 5 years at the age of 65

So the benefit he will be getting would be after accepting the counter offer is

= ($480,000 + $180,000) ÷ 12 months

= $660,000  ÷ 12 months

= $55,000

6 0
3 years ago
What happens to the price of these needed goods if production declines and there are fewer goods to go around?
Lostsunrise [7]

Answer:

the price increases

Explanation:

its inflation due to the decrease in production of the the product but not the need for it the price will rise.

5 0
3 years ago
Other questions:
  • warnerwoods compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific ident
    9·1 answer
  • Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual
    12·1 answer
  • Raindrop gear utilizes job-order costing for production of customized umbrellas. each division establishes its own estimates reg
    13·1 answer
  • The efforts of employees who work directly to convert direct materials into the finished product are referred to as ______
    10·1 answer
  • The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected
    7·1 answer
  • A customer has opened a margin account and has signed both the hypothecation agreement and the loan consent agreement. The broke
    8·1 answer
  • _____ is defined as the process a company employs to externally search for and source research, new technologies, and products.
    15·1 answer
  • Earnings per share should always be shown separately for:.
    11·1 answer
  • Which of the following is an example of a content management system (CMS)?
    7·1 answer
  • The major activity in strategic planning is the analyses of a business​ __________.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!