Answer:
In the accrual accounting system, revenue is recognized in the books once it is earned. This is when the service or goods has been delivered and acknowledged by the customer. Expenses are recorded in the period incurred under this system of account.
Under cash basis accounting, revenue is only recognized when cash has been received. Expenses are also recognized when cash is paid.
a. Revenue to be reported is $820 million.
Debit Cash $800 million
Debit Accounts receivable $20 million
Credit Revenue $820 million
b. $520 million
c. Using cash basis, Revenue to be reported is $800 million
Debit Cash $800 million
Credit Revenue $800 million
Total expense will be $610, the amount paid.
The accrual basis would record a revenue that is $20 million more than that recognized on the cash basis knowing that the revenue principle requires that revenue be recognized once the goods have been delivered to the customer or the service has been rendered and acknowledged by the customer.
d. The income statement is the financial statement that reports revenue and expenses. while the balance sheet records cash receipt and cash payments.
Explanation:
Cash is an asset recognized in the balance sheet while revenue and expenses are recognized in the statement of profit or loss or income statement. Cash and accrual bases are 2 systems of recognizing transactions in the books. The major difference between them is about cash collection or payments.
Answer:
This process is known as Benchmarking
Explanation:
Benchmarking is the process of comparing business process and performance to the best practices from the other companies. The dimensions measured and compared are time, quality and cost.
This allows the organizations to improve the projects or plans or adapt the specific best practices with the aim of increasing the performance.
Answer:
The value of this stock today should be $6.22
Explanation:
The company will start paying dividends 2 years from today that is at t=2. The dividends received 2 years from today can be denoted as D2. The constant growth model of DDM will be used to calculate the price of this stock at t=2 as the growth rate in dividends is constant forever.
The price at t=2 will then be discounted back to its present value today to calculate the price of this stock today.
The price of this stock at t=2 will be,
P2 = D2 * (1+g) / (r - g)
P2 = 0.6 * (1+0.04) / (0.12 - 0.04)
P2 = $7.8
The value of this stock today should be,
P0 = 7.8 / (1+0.12)^2
P0 = $6.218 ROUNDED OFF TO $6.22
Answer:
correct answer is Consultative Selling
Explanation:
personal selling approach is Consultative Selling
we know it is that sales approach where priority relationship and open dialogue to the identify and provide them customer need and a solution
and that is focused on the customer rather than products sold and it help for a salesperson for the understanding challenge which is faced by the customer
so correct answer is Consultative Selling
