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ankoles [38]
3 years ago
7

The concept or principle that states that companies should recognize revenue when goods or services are transferred to customers

for the amount the company expects to be entitled to receive in exchange for goods and services is referred to as the:
Business
1 answer:
nexus9112 [7]3 years ago
6 0

Answer:

core revenue recognition principle

Explanation:

Evenue recognition us defined as recognising a revenue when the collection of cash from a sale has been made or is reasonably assured. It is recognised in the period when it occurs.

The matching principle states that expenses are incurred when obligations are incurred, and revenue are recognised when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for goods and services.

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Backstreets Co. recently acquired all of Jungleland Inc.’s net assets in a business acquisition. The cash purchase price was $6.
sveta [45]

Answer:

The goodwill is $1.1 million

Explanation:

In this question, first we have to compute the net asset which is shown below:

Net asset = Total asset - total liabilities

where,

Total asset = Land + building + inventory

                  = $1.7 million + $3.4 million + $2.2 million

                  = $7.3 million

And, the total liabilities = long term note payable = $1.5 million

So, the net asset would equal to

= $7.3 million - $1.5 million

= $5.8 million

Now the goodwill equal to

=  Cash purchase price - net asset

= $6.8 million - $5.8 million

= $1.0 million

7 0
3 years ago
Kate also wishes to pay dividends on both her common shares and the preferred stock. She is a little confused between cash and s
11111nata11111 [884]

Find the answers in the explanation below

Explanation:

Cash dividend: Cash dividend is dividend that is paid in cash to shareholders in the event that the company or firm does not need the money for any kind of operation. This means that the company is giving economic value to its shareholders. This transfer of economic value to shareholder means that the shares price of the company will drop. An example is a company having a share dividend of 5%. That means that the price of the company shares will fall by 5%.

Stock dividend: Stock dividend unlike cash dividend is increase stock dividend as well as help stockholders to avoid tax. This subsequently does not increase the value of the company. For example, if stock dividend of a company is 5% and as much as 1 million shares, when stock dividends are declared the stockholder gets extra of 50,000 shares. The stock holder can either keep the shares or sell it to create his own

Cheers

5 0
3 years ago
Andrea uses a rake to move a pile of leaves. The rake is being used as a _____ lever. First-class second-class third-class
laila [671]

The answer to your question is Third Class.

8 0
3 years ago
Read 2 more answers
A. Define supply as an economist would. B. List and explain three (3) non-price factors that will shift the supply curve. C. If
Paladinen [302]

Answer:

A: Refer the detail below

B: Refer the detail below

C: Refer the detail below

Explanation:

A. Definition of Supply

Supply is an economic term that refers to the quantity of a given product or service that suppliers are willing to offer to consumers at a given price level at a given period. Supply is positively related to price given that at higher prices there is an incentive to supply more as higher prices may generate increased revenue and profits

B. Non-price factors that will shift the supply curve

1. Producer input costs

2. producer expectation

3. The number of sellers.

C. Impact of Fountain Pens market

If the cost of production of fountain pens falls, producers can produce more goods by using the same amount of money. Therefore, the supply will increase and the supply curve will shift to the right.

5 0
3 years ago
Research an example of a monopoly in the United States economy, past or present. Construct a brief explanation of the monopoly a
a_sh-v [17]
 I don't think there's anything more annoying than the ISP monopolies, specifically Comcast which has most of the US I believe. They never bother to upgrade their services only their prices and stupid cable bundle packages. I'm lucky enough to live in a large metropolitan area where a new fiber internet company just started up but before this last year there were only two ISP choices; Comcast or Century link. Suburban and rural areas typically only get one choice; expensive slow internet service from a local ISP monopoly.

8 0
3 years ago
Read 2 more answers
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