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ankoles [38]
2 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]2 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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Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 75,000 $1 par c
valkas [14]

Answer:

the total compensation cost is $75,000

Explanation:

The computation of the total compensation cost for this plan is shown below:

Total compensation cost = option granted × fair value of each option

total compensation cost = 75000 × $1

total compensation cost = $75,000

Here to determined the total compensation cost we simply multiplied the option granted with the fair value of each option so that the correct amount could come

Therefore the total compensation cost is $75,000

4 0
3 years ago
American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively Ameri
drek231 [11]

Answer:

a. Particulars                                Amount

Gross sales                                  $925,000

Less: COGS                                 <u>$490,000</u>

EBITDA                                        $435,000

Less: Depreciation                      <u>$120,000</u>

EBIT                                              $315,000

Less: Interest on notes payable <u>$8,800   </u>  (220000*4%)

EBT                                               $306,200

Less: Tax (35%*306200)             <u>$107,170</u>

Net Income                                   <u>$199,030</u>

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b. Operating cash flow = Net income + Depreciation

Operating cash flow = $199,030 + $120,000

Operating cash flow = $319,030

6 0
3 years ago
All quality social media creation for a business has some cost attached to it, therefore business managers have many factors the
BartSMP [9]

Answer: media share site

Explanation: In other to promote business growth, most businesses have tapped into the use of social media which enables business to reach a very large audience all over the world within a very short span of time. The media sharing sites refers to a website which gives users the privilege to store and share digital contents such as pictures, videos and other media content with others. Platforms such as Instagram, Vine, Flickr, and so on. Media sharing sites offers the ability to share contents with a others around the world through a website which is accessible from anywhere in the world. In selecting a media sharing site however, one must consider the content act or creator, distribution and cost.

6 0
3 years ago
g The current ratio is a.a solvency measure that indicates the margin of safety for bondholders. b.used to evaluate a company's
adoni [48]

Answer:

b.used to evaluate a company's liquidity and short-term debt paying ability.

Explanation:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets.

A company with a current ratio less than one does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater than one indicates the company has the financial resources to remain solvent in the short-term.

3 0
3 years ago
Geo Co. purchased a building for $400,000. In addition, Geo paid $35,000 for taxes and lawyer fees. Geo also paid $60,000 to mod
ycow [4]

Answer: $495,000 User “Parrain” is the person who solved this question

Explanation: ALL costs that went into the DIRECT acquisition of the asset as well as COSTS TO SET IT UP for use by the firm should be accounted for in the amount recorded. In this case that would mean that the cost price, the closing fees and the modification fees all need to be accounted in the final amount. That would be $400,000 + $35,000 + $60,000= $495,000$495,000 should be recorded as the building's cost.

4 0
2 years ago
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