Answer:
In the accrual accounting system, revenue is recognized in the books once it is earned. This is when the service or goods has been delivered and acknowledged by the customer. Expenses are recorded in the period incurred under this system of account.
Under cash basis accounting, revenue is only recognized when cash has been received. Expenses are also recognized when cash is paid.
a. Revenue to be reported is $820 million.
Debit Cash $800 million
Debit Accounts receivable $20 million
Credit Revenue $820 million
b. $520 million
c. Using cash basis, Revenue to be reported is $800 million
Debit Cash $800 million
Credit Revenue $800 million
Total expense will be $610, the amount paid.
The accrual basis would record a revenue that is $20 million more than that recognized on the cash basis knowing that the revenue principle requires that revenue be recognized once the goods have been delivered to the customer or the service has been rendered and acknowledged by the customer.
d. The income statement is the financial statement that reports revenue and expenses. while the balance sheet records cash receipt and cash payments.
Explanation:
Cash is an asset recognized in the balance sheet while revenue and expenses are recognized in the statement of profit or loss or income statement. Cash and accrual bases are 2 systems of recognizing transactions in the books. The major difference between them is about cash collection or payments.
Answer:
you just explain how smart it is.
it can add more tecnoligy
Explanation:
Answer:
observation
Explanation:
Based on the information provided within the question it can be said that in this scenario Bianca will most likely use observation. That is because the best way of gathering this information is to observe each customer as they walk out of the store and see which store they go into next. This information can be written down and reviewed later.
Answer:
b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal.
Explanation:
When goods were sold on account, Accounts receivables is debited, and Sales is credited. When goods are returned, Sales Return & Allowances is debited, and Accounts receivables is credited.
Thus, the entry will include Debit in Sales Returns and Allowances $2,300 and Credit in Accounts Receivable $2,300
Answer:
<u>less risk</u>
Explanation:
Note: <u>The question appears to be incomplete. Another similar question has been attached for reference purpose and the answer provided herein is based upon that</u>.
It is common consumer behavior of sticking to a brand name despite another lower cost option providing the same base or constituent. Particularly in case of necessities, the law of demand i.e lower price higher demand fails as consumer would prefer being exposed to lesser risk no matter whatever be the cost.
In the given case, the consumer i.e Cole prefers going with a brand name as it provides him with a higher degree of assurance as the brand has a certain reputation attached to it which the other generic option lacks.
Secondly owing to his familiarity with the drug and it's past usage experience, he has developed brand loyalty apparently.
Thus, Cole's decision is attributable to <u>less risk.</u>
