Which type of business is owned by an individual?

BE18.8 (LO 2) Presented below are three revenue recognition situations. a. Groupo sells goods to MTN for $1,000,000, payment due

dem82 [27]

Answer:

a. Groupo sells goods to MTN for $1,000,000, payment due at delivery.

transaction price = $1,000,000
revenue recognized once the goods are delivered

No journal entry is required until goods are delivered and accepted.

b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days.

transaction price = $800,000
revenue recognized immediately since goods were already delivered

The journal entry:

Dr Accounts receivable 800,000

Cr Sales revenue 800,000

c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000.

transaction price = $480,000
revenue recognized immediately since goods were already delivered

The journal entry:

Dr Notes receivable 500,000

Cr Sales revenue 480,000

Cr Discount on notes receivable 20,000

8 0

3 years ago

The U.S. work week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours:________

Len [333]

Answer:

It will Decreases U.S. real GDP and on the other way round it will increases the well-being of a typical working person in the U.S.

Explanation:

The impact of the decline in working hours is that it will Decreases U.S. real GDP and on the other way round it will definitely lead to increase in the well-being of a typical working person in the U.S. because of the decline in the U.S work week which was formally 60 hours in the 1980 but now 40 hours today because a typical working person will have more time for him/her and the stress involved in working for 60 hours per week will reduce when compared with working for 40 hours per week because a typical working person in the U.S will preferred to work for 40 hours per week than 60hours per week for the betterment of their well being.

4 0

3 years ago

Alpha Ltd has appointed you as a manager in the budgeting department. The company has provided the following information to prep

nasty-shy [4]

Answer and Explanation:

The preparation of the cash flow budget is presented below:

Cash Flow Budget

Particulars Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021

Opening Balance $1,000 $1,400 $2,000 $4,600 $8,300 $11,700

Sales $4,000 $4000 $6,000 $7,500 $7,500 $7,500

(2,000 × 2) (2,000 × 2) (2,000 × 3) (2,500 × 3) (2,500 × 3) (2,500 × 3)

Total Cash Inflow $5,000 $5,400 $8,000 $12,100 $15,800 $19,200

Less: Cash payments

Less: Bonus to employees $1,000 $800 $800 $800 $1,500 $1,500

(5,000 × 20% ) (4,000 × 20% ) (4,000 × 20% ) (4,000 × 20% ) (7,500 × 20% ) (7,500 × 20% )

Less: Overhead Cost 2,000 2,000 2,000 2,000 2,000 2,000

Less: Direct material & Direct Labor 500 500 500 500 500 500

Less: Fixed Cost 100 100 100 100 100 100

Net cash generated (A) 400 600 600 4100 3400 3400

Opening Cash balance (B) 1000 1400 2000 2600 6700 10100

Closing Balance (A+B) 1400 2000 4600 8300 11700 15100

Balance as on 30 June 2021 = 15100

We simply deduct all cash payments from the all cash receipts so that the ending balance or closing balance could come

3 0

3 years ago

If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of

Lerok [7]

Answer:If the firm had sharp seasonal sales patterns, or if it grew rapidly during the year, many ratios would most likely be distorted.

Explanation: Fluctuations in Economics patterns have distorting effects on the ratios of a company or an economy especially if the the seasonal patterns has been consistent for a certain period. THE VALIDITY OF MOST RATIOS ARE SEVERELY AFFECTED BY SHARP CHANGES WHICH MAKES ECONOMIC WATCHERS FEEL THE RATIOS ALREADY ANALYSED ARE NOT VALID.

A consistent flow pattern is desired in an economy and in business Organisation as it helps to give Economic watchers enough confidence in the ratios already existing.

4 0

3 years ago

Bradley, the president of Commerce & Trade, Inc., claims that certain actions by the federal government and the state of Del

olga nikolaevna [1]

Answer:

The correct answer is B

Explanation:

The Bill of Rights is the one which guarantees the liberties as well as the civil rights to the individual such as the religion, press and freedom of speech.

It states the rules for the procedure which is due for the law and also reserves all the powers not delegated to the Federal Government to the States or the people.

Therefore, the one where all the rights limit the federal government.

5 0

3 years ago