This is a true statement if that's what you were looking for
Answer: a. At the end of Year One, the company's liabilities are understated.
Explanation:
Under the Accrual basis of Accounting, revenue should be recorded for only jobs that have been completed. In other words, only earned revenue should be recorded. Revenue that has not been earned but yet received, is to be termed Deferred revenue and should be treated as a current liability.
In this scenario, there are steps that have not been completed so some of the revenue received should be termed deferred revenue. These should therefore be in current liabilities and because they were not, the liabilities for the end of year 1 will be understated.
Answer:
Option D
Explanation:
Option D are all the requirements needed for to process the eligibility of Lisa for aoc and applying for aoc.
Answer:
Value added
Explanation:
Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.
The value of this difference help to determine the profit on products.
Higher the value of add, higher will be the charges of product and higher will be the revenue collected.
Answer:
c. $280,000
Explanation:
The computation of the cost of the direct material used is shown below:
= Beginning raw material inventory + Purchase of raw material - ending raw material inventory
= $32,000 + $276,000 - $28,000
= $280,000
Beginning raw material inventory + Purchase of raw material is also called the available raw material for production use
Hence, all other options are incorrect except C. option
