Answer: D) not been recorded and unearned revenues have.
Explanation:
Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.
Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.
Answer:
The $4,060,000 should be added to the net income under the operating activity.
Explanation:
Depreciation: It is the amount which shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, etc.
Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments also.
Moreover, the depreciation amount should be added to the net income amount because depreciation is a non - cash expense.
So, $4,060,000 should be added to the net income under the operating activity.
Answer:
D) the production of an additional unit of dynamite costs the same regardless of whether chemicals or labor are used.
Explanation:
Average total cost (ATC) per unit will be lowest where ATC curve intersects marginal curve (MC). At that point producing an additional unit of dynamite will cost the same no matter which combination of inputs (chemicals or labor) is used. At this point, production costs will be minimized, and then they will rise again (ATC curve is U-shaped).
Answer:
Crimson Tide Corporation
Accounts Titles Debit Credit
1. Dividends $800
Cash $800
To record payment of dividends.
2. Accounts Receivable $3,400
Service Revenue $3,400
To record provision of services on account.
3. correct
4. Cash $400
Accounts Receivable $400
To record the receipt of cash on account.
5. Accounts Payable $1,200
Cash $1,200
To record payment on account.
Explanation:
The correct entries have been provided as above. The first step in recording transactions in the journal is to recognize the accounts involved. Then, identify which account is to be debited and which is to be credited, following basic accounting principle and based on the accounting equation of Assets = Liabilities + Equity.
Answer:
Bank Statements.
Payroll Reports.
Invoices.
Leases & Contracts.
Check Registers.
Purchase Orders.
Deposit Slips – not included on a bank statement.
Check Copies – not included on a bank statement
Explanation:
