Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
Answer:
B. $80
Explanation:
The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income
To find out which ads and other marketing strategies are working, many companies ask customers how they have heard about the company or product.
Most businesses ask how you found out about their service/product. By asking this question, they are able to track where their marketing efforts are working and where they are not. If they are advertising in one place and it's not reaching consumers, it may be worthwhile for them to take out advertisements there and move them to another place.
Answer:
$22,500
Explanation:
Chance of getting low quality car = 50%
Chance of getting high quality car = 50%
Cost of low quality car = $15,000
Cost of high quality car = $30,000
So, Price of the car = 50% of lower quality + 50% of higher quality
= (50% × $15,000) + (50% ×30,000)
= $7,500 + $15,000
= $22,500
Hence, price of the used car will be $22,500.
Answer:
Cash provided by operating activities $84,700
Explanation:
The computation of the amount of cash provided by operating activities is shown below:
Net income $85,100
Add: depreciation expense $1,400
Less: increase in account receivable -$2,700
Add: Increase in account payable $900
Cash provided by operating activities $84,700
