Answer:
Option A is correct which states that".There is no such thing, in IASB standards, as a "contingent asset"
Answer:
The answer is D. $3,750
Explanation:
This is an unearned revenue because the fee covers a service that will be rendered for a period of 12months(a year).
Unearned revenue is categorized as a liability because the customer has not fully exercised all its services/benefits.
So as this magazine is delivered monthly, this unearned subscription revenue decreases and revenue increases.
To calculate what will be earned monthly:
$15,000/12months
=$1,250.
So For January - $1,250
February- $1,250
March -. $1,250
So for the first quarter(January to March), $3,750 will be recognized as revenue while the unearned subscription revenue decrease by $3,750.
Alternatively, since 3 months make a quarter and we have 4 quarters in a year, it can be calculated as:
$15,000/4
$3,750.
Therefore, subscription revenue of $3,750 will be recognized every quarter.
Answer:
Correct answer is D, Debit Insurance Expense, $460; credit Prepaid Insurance, $460
Explanation:
The company uses asset method of recording the purchase of insurance. Hence, at end of year end the company must recognize the expire portion of the policy and charge it against insurance expense.
$2,300 / 5 years = $460 (annual insurance expense)
Entry:
Debit Insurance expense $460
Credit Prepaid insurance $460
The balance of the prepaid insurance at the end of first year is $1,840 (2,300 - 460).
According to the tort doctrine of <u>respondeat superior</u> , any time an employee is liable for tortious acts in the scope of employment,
<h3>What is tortious acts?</h3>
Tortious acts is an act that occur when a person is harm as a result of another action which inturn lead to legal liability for the person who committed the act.
Hence, Respondeat superior stated that an when an employee is liable for committing tortious acts the employer is as well liable for the same act.
Learn more about Tortious acts here:
brainly.com/question/15570864
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