Answer:
a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned
Explanation:
When cash is received for revenue yet to be earned, it is called deferred revenue. The entries posted at this point is a Debit to Cash (an increase in cash balance) and a Credit to Deferred revenue (a liability account). When the revenue gets earned, it get recognized with a Debit to Deferred revenue (to reduce the liability as the obligation has been fulfilled resulting in revenue being earned) and a Credit to Revenue (P/L).
Hence, the right option is a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned.
Answer:
a. marginal benefit is greater than both the average cost and the marginal cost.
Explanation:
Marginal cost is the cost of any action taken and average cost is the average of all the costs associated with the action under consideration. Marginal benefit is the benefit of each action undertaken. A rational approach is to take an action when marginal cost and average cost will be lower than the marginal benefit. You should consider the net Marginal benefit of an action before taking decision.
Answer:
The cuopon rate is 8%
Explanation:
We are given with the data and need to solve for the rate of the cuopon:
Market value: 1,006.27
Market value = cuopon payment + maturity
Maturity 1,000
time 9
rate 0.079
PV 504.4371 = Maturity value
Market value = cuopon payment + maturity
1,006.27 = cuopon payment + 504.44
1,006.27 - 504.44 = 501.83
The present value of the cuopon payment Using the annuity formula we solve for cuota:
then:
PV $501.83
time 9
rate 0.079
C -$ 80.00
We know that Cuopon payment is equal to:
Face value x bonds interest = C
1,000 x r = 80
r = 80/1,000 = 0.08 = 8%
Answer:
No, no revenue is recorded for items shipped FOB destination until those items reach the buyer.
Explanation:
In this scenario the buyer has not received the good so ownership has not transferred hands. According to shipping FOB terms, till the buyer actually recieves the goods they are technically still the property of FY world.
So Wally will not be able to record revenue against this sale. Rather he will still recognise the merchandise as part of the companie's inventory.
When the buyer recieves the goods he can now record the revenue from the sale.
Answer:
Explanation:
The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner argues they hire honest employees.
weakness <em>does not use ID scanners (surely they must hire honest employees and also use appropriate tools)</em>
An employee cannot approve their own request for purchases of inventory.
strength <em>cannot approve their own request (the hierarchically above should approve)</em>
Several salesclerks share the same cash drawer.
weakness <em>share the same cash drawer (this must be prohibited)</em>
Employees that handle easily transferable assets such as cash are bonded.
weakness <em> </em><em>transferable assets such as cash are bonded (the employee should not be responsible for)</em>
The company devotes resources towards keeping accurate accounting records for machinery.
strength <em>resources</em> <em>keeping accurate accounting records for machinery.</em>
<em>(Certainly company should </em> <em>accurate accounting records ever</em>