Answer:
40%
Explanation:
The Dean company have a sales of $500,000
The break-even point in sales dollar is $300,000
Therefore, the company's margin of safety can be calculated as follows
Margin of safety= Sales-break-even sales/sales
= $500,000-$300,000/$500,000
= $200,000/$500,000
= 0.4×100
= 40%
Hencethe company's margin of safety percentage is 40%
Answer:
b.requires that economic data be reported in yen in Japan or dollars in the United States
Explanation:
According to the monetary unit assumption, the transaction of the business are recorded in terms of monetary units
That means only that transactions are recorded which are in terms of money
. If the transactions are not in terms of money than the same is not under the monetary unit assumption
As in the given options, the japan currency is yen and the currency of the united states is dollars that reflect the monetary unit
Answer:
D. capital
Explanation:
because its only capital and has nothing to do.. we just can spell it.. but not to provide all of the household provide
Answer:
3 years after the right of return has expired
Explanation:
Generally accepted accounting principles (GAAPs) specify the scenario wherein revenue is to be recognized.
As per the accrual principle, revenue is to be recognized when earned and not when actual cash is received against it.
In the given case, the company allows it's customers to return the products sold within a period of three years. Hereby, the company must make a provision for contingency against future returns.
Here, the business should be able to estimate the number of vacuums that would be returned. Here, the company is unable to do so owing to no past record or history.
Hence, the company may have to wait till maximum period of 3 years i.e the time when products can no longer be returned, for recognizing revenue associated with the sales.
