The maximum amount you should pay towards housing costs each month in relation to your realized income

Al is a medical doctor who conducts his practice as a sole proprietor. During 2014, he received cash of $280,000 for medical ser

Vinvika [58]

Answer:

Al should use the cash method of accounting so that he will not have to pay income taxes on uncollected accounts receivable

gross income = $292,000

gross income computed by the accrual method = $300000

Explanation:

given data

received cash = $280,000

services provided = $40,000

accounts receivable = $60,000

advance payment = $12,000

solution

as we know that Al's gross income on the cash basis is

gross income = ($280,000 + $12,000) = $292,000

and

Al gross income computed by the accrual method is as following

as we know here Cash received $292,000

gross income computed by the accrual method = Cash received - advance payment - services provided + accounts receivable

gross income computed by the accrual method = 292,000 - 12,000 - 40,000 + 60,000

gross income computed by the accrual method = $300000

so

Al should use the cash method of accounting so that he will not have to pay income taxes on uncollected accounts receivable

3 0

3 years ago

_______ is a system for managing demand-dependent inventories that minimizes the inventory holdings of the firm at any given tim

vlabodo [156]

Answer: <u>"A. Just-in-time inventory"</u> is a system for managing demand-dependent inventories that minimizes the inventory holdings of the firm at any given time.

Explanation: The Just in time system is an inventory maintenance policy at the lowest possible level where suppliers deliver just what is necessary at the time necessary to complete the production process. In this way, we seek to reduce the costs of maintaining higher inventories, purchasing costs, financing of purchases and storage.

3 0

4 years ago

What are payroll taxes?

Brut [27]

Answer:

This is all the information I could find.

5 0

3 years ago

Illinois Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hou

Harlamova29_29 [7]

Answer:

$480

Explanation:

Data provided in the question:

Machine Hours Repair Costs

2,400 $6,385

1,200 $3,480

2,000 $5,285

3,400 $8,980

Now,

Machine Hours Repair Costs

Highest 3,400 $8,980

Lowest 1,200 $3,480

Difference 2,200 $5,500

Unit variable cost = $5,500 ÷ 2,200

= $2.5

Total cost at high level = $8,980

Machine hours highest level = 3,400

Also,

Total cost at high level = Fixed cost + Variable cost at highest level

or

$8,980 = Fixed cost + [ $2.5 × 3,400 ]

or

Fixed cost = $8,980 - [ $2.5 × 3,400 ]

= $8,980 - $8,500

= $480

7 0

3 years ago

An important marketing metric used to evaluate how well firms perform on the five service quality dimensions is the __________,

Pavlova-9 [17]

Answer:

<u>Zone of tolerance</u>

Explanation:

Zone of tolerance with respect to a service refers to, the acceptable range to a customer, that lies between the perceived desired level of service expected and the minimum level of service acceptable.

The service which the customer anticipates or expects to be delivered by a firm is referred to as predicted service.

Customer expectations do not depict a single level of expectation, rather they follows a range of expectations. This range is represented as zone of tolerance.

If the service received lies in the zone of tolerance, the customer would be satisfied. If it is higher than the desired level, the customer would consider it exceptional.

In case the service received falls below the minimum level of acceptance, the customer would be disappointed and feel deceived or tricked.

4 0

3 years ago