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Rudik [331]
3 years ago
7

Clarion Corp. invested cash in a 6-month certificate of deposit (CD) on November 1, 2015. If Clarion Corp. has an accounting per

iod that ends on December 31, 2015, when should Clarion recognize interest revenue from the CD?
a. On December 31, 2015 only
b. On May 1, 2016 only
c. Both December 31, 2015 and May 31, 2016
d. On the date when its income tax return is filed
Business
1 answer:
Ira Lisetskai [31]3 years ago
5 0

Answer:

A is the correct option

Explanation:

Revenue or income is recognized based on accrual concept of accounting where revenue or income is recognized when earned and expenses when incurred not when received or paid in  cash.

As a result,on the 31st December Clarion Corp. has earned two months' interest on the 6-month certificate of deposit as it has invested for two months.

The correct option is A,Clarion recognizes interest revenue on 31st December ,2015 only.

It is also important to note that the since 2015 came to end the fraction of interest revenue relating to  year 2015 needs to be recognized by debiting accrued income account and crediting investment on the face of the income statement

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Which of the following is a condition that triggers the penalty for negligence or intentional disregard? 1) the taxpayer underst
Vsevolod [243]

Answer:

2) the taxpayer shows negligence or disregard of the rules or regulations, causing an underpayment.

Explanation:

             When any taxpayer shows some negligence or if they disregard the rules and the regulations, causing an underpayment, then it leads to a penalty for the disregard or the negligence.

              Also, when a taxpayer intentionally understates his or her tax by a larger of $5000 or a 10% of his / her correct tax, then it is an accuracy related penalty.

              And, also the information related penalties which are levied for failure of  taxpayer to pay the amount of tax owed by  due date and also failure to filing the return by the due date.

Thus option (2) is correct.

5 0
3 years ago
Initially, you produce 100 boxes of jelly beans per time period. Then a new customer calls and places an additional order for je
erastova [34]

Answer:

You should produce as long as the marginal cost per additional box is lower than the marginal revenue obtained by the additional box.

In other words, if the marginal cost of producing the 101th box is lower than $1.75, then, you should continue to produce, because revenue will be higher than cost, and a profit will be made as a result.

5 0
3 years ago
The balance in the unearned fees account, before adjustment at the end of the year, is $900,000. Of these fees, $775,000 have be
Sloan [31]

Answer:

(a) Debit Unearned fees account  $775,000

    Credit Fees revenue account    $775,000

(b)  Debit Unbilled receivables   $289,500

     Credit Fees revenue account    $289,500

Explanation:

When fees are received in advance but yet to be earned, a debit is posted to cash account and a credit to unearned fees. When revenue is earned, credit revenue and debit unearned fees.

As such, given that before adjustment at the end of the year, is $900,000. Of these fees, $775,000 have been earned. Adjusting entries required

Debit Unearned fees account  $775,000

Credit Fees revenue account    $775,000

Being entries to record revenue earned.

Also given that $289,500 of fees have been earned but not billed to clients, entries required are

Debit Unbilled receivables   $289,500

Credit Fees revenue account    $289,500

Being entries to accrue for revenue earned but yet to be billed.

6 0
3 years ago
A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned wit
Gemiola [76]

Answer: a. communication, courtesy, and credibility

Explanation:

The Consumer survey showed that when buying a car customers are interested in the salesperson's ability to explain what the car does and what it's has, in short it's features. This means that they would like a Salesperson that Communicates effectively, the need for the car.

Dealers should therefore be very concerned with the communication skills of their sales people.

The Consumers would also like a friendly person. This is simple Courtesy. The sales person must be able to show courtesy to the customers to entice them to buy a car and so Dealership management should be very worried about this.

A final thing the Dealer should be worried about is Credibility. Consumers want to know if the Dealer is credible in that if the claims the dealer is making is true and honest. Too many salespersons say anything to get people to buy things even if it is a lie. A car is a big investment and so consumers would very much like to avoided being lied to.

5 0
3 years ago
Marketers should keep a close eye on the ________ environment in order to ensure that their product sales don't decline when a c
Kaylis [27]
Market environment is the answer
5 0
3 years ago
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