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katrin [286]
4 years ago
15

Provides​ house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finis

hed. Some customers ask that the business send them a bill. As of the end of the​ year, Peaceful Home has collected $ 1,000 from​ cash-paying customers. Peaceful Home ​'s remaining customers owe the business $ 1,400 . How much service revenue would Peaceful Home have for the year under the a. cash​ basis? b. accrual​ basis?
Business
1 answer:
GalinKa [24]4 years ago
7 0

Answer:

a. $1,000 will be recognized as service revenue using the cash basis.

b.  $2,400 ($1000 plus $1400) will be recognized as service revenue using the accrual basis.

Explanation:

Given that as of the end of the​ year, Peaceful Home has collected $ 1,000 from​ cash-paying customers while Peaceful Home ​'s remaining customers owe the business $ 1,400.

Revenue to be recognized using;

  • Cash basis

$1,000 will be recognized as service revenue using the cash basis.

  • Accrual basis

On accrual basis, revenue is recognized when the service has been provided irrespective of whether cash has been collected or not.

A total of $2,400 ($1000 plus $1400) will be recognized as service revenue using the accrual basis.

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3 0
3 years ago
The standard price and quantity of direct materials are separated because a.GAAP and IFRS reporting requires separation b.standa
geniusboy [140]

Answer:

The correct answer is letter "D": direct materials prices are controlled by the purchasing department and quantity used is controlled by the production department.

Explanation:

Standard price is the estimated price direct materials could have at the moment of ordering a purchase. Standard quantity refers to the forecasted number of units necessary for the production process of the firm. The two of them are separated to allocate each one to the department in charge of their providing accurate measures: <em>standard prices are set by the purchasing department while the standard quantity is estimated by the production department. </em>

The efficiency of standard price and quantity relies on the purchasing and production departments separately.

5 0
3 years ago
Selected transactions for Thyme Advertising Company, Inc. are listed here Describe the effect of each transaction on assets, lia
Dima020 [189]

Answer:

1. Increased assets (Cash) – Increased stockholders’ equity (Common Stock)

2. Decreased stockholders’ equity (Rent Expense) - Decreased assets (Cash)

3. Increased assets (Cash) – Increased stockholders’ equity (Service revenue)

4. Increased assets (Accounts receivable) – Increased stockholders’ equity (Service revenue)

5. Decreased liabilities (Cash Dividends Payable) – Decreased assets (Cash)

6. Decreased stockholders’ equity (Advertising Expense) - Increased liabilities (Accounts payable)

7. Increased assets (Cash) – Decreased assets (Accounts receivable)

8. Increased assets (Equipment) – Decreased assets (Cash)

9. Increased assets (Equipment) – Increased liabilities (Accounts payable)

Explanation:

Accounting Equation Formula:

Assets = Liabilities + Owner's Equity

This equation tells us that Assets are increased by Debits and decreased by Credits, instead, Liabilities and Stockholders´ Equity decreased by Debits and increased by Credits. In the answer, Debits are represented by the left side of the note, and Credits by the right side of the note.  

8 0
4 years ago
Net present value ____________________. Group of answer choices compares project cost to the present value of the project benefi
lakkis [162]

Answer:

compares project cost to the present value of the project benefits

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

A good investment is an investment that has a positive NPV. When comparing two or more projects, the project with the higher NPV should be chosen.

4 0
4 years ago
Behavioral economists attribute some consumer behavior to the endowment effect. Which of the following is an example of the endo
tensa zangetsu [6.8K]

Answer:

B. Being unwilling to sell a painting that you already own

Explanation:

Endowment effect is when individuals value things they own more highly than things they don't own. The endowment effect postulates that individuals are unwilling to exchange things they own for something else of equal value.

The amount people would be willing to accept in exchange for the good they own is usually very high compared to the true value of the object they own.

I hope my answer helps you.

3 0
3 years ago
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