Answer:
May 1, 2020 - No Entry
Explanation:
IFRS 15 requires an entity to recognise revenue <em>when</em> entity transfers the goods or services to the customer.
Transfer of the mower happens on May 31, 2020, this is the date at which Revenue is recognised.
The cash is also paid on May 15, 2020, according the <em>accruals concept</em>, no entry must be done on May 1,2020. Only when the payment occurs should there be a record in Vaughn books.
Answer:
C) Sales markets of the foreign entity are primarily in foreign countries.
Explanation:
The US dollar is the most commonly used currency in the world, and most of foreign trade is carried out using the US dollar. If the foreign entity sells most of its production overseas (exports) then they will use the US dollar as their functional currency since all their exports will be valued in US dollars.
Answer:
Gain in USD = 50000
Gain or Loss in EUR = 0
Explanation:
given data
investments = 500,000 euros
before euro = $1.20
now euro = $1.30
to find out
gain or loss in value of the inventory expressed in dollars and in euros
solution
we get Gain or Loss in USD = Euro amount × current exchange rate - Euro amount × old exchange rate ..................1
put here value
Gain or Loss in USD = 500000 × 1.30 - 500000 × 1.20
gain = 50000
and
Gain or Loss in EUR = current euro amount - old euro amount .......2
put here value we get
Gain or Loss in EUR = 500000 - 500000 = 0
Answer:
Retained earnings refers to:
D. The net losses and dividends declared since its inception of a company's cumulative net profit.
Explanation:
Retained earnings are referred as :
- The overall earning the company have made till the present date.
- This earning excludes the dividend money and the money of the investors distributed.
- Whenever new records are made for the company this dividend money is readjusted.
- This leftover money has an impact on the account related to the expense and revenue.
- The retained earnings are built of the total income amount which has been given by a business after paying off the dividend to the shareholders.
So, here correct option is
D. The net losses and dividends declared since its inception of a company's cumulative net profit.
Answer:
For a manufacturer the budgeted income statement includes amounts from the sales, cost of goods sold, cash, and capital expenditures budgets (c)
Explanation:
Like a typical income statement, the Budgeted income statement would show its Sales Forecast, and the resultant costs of producing these volume projected. It will usually follow a trend consistent with the Previous years Business seasonality, peak and lows, and duration of consumer improved disposable income (e.g periods of tax credit, black friday etc).
In addition a Business will want to forecast its Cashflow and Capital expenditure (Balance Sheet) so as to have a general view of what to expect if circumstances turn out as planned and to have a picture of how much growth or decline it is projecting into the future.
