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3 years ago

The recognition principle states that:____________

Business

1 answer:

natita [175]3 years ago

6 0

Answer:

e) sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined.

Explanation:

The recognition principle states that sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined. Recognition principle is one of the principle defined by the Generally Accepted Accounting Principles (GAAP).

Basically, it states that revenues are to be indicated on the income statement during the period when they are earned but not the period in which they are received or collected. The recognition principle is in accordance or in tandem with the accrual basis of accounting and not the cash basis of accounting.

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Based on this analysis, a large portion of product cost relates to direct material. Managers should determine whether the direc

drek231 [11]

Answer:True

Explanation:

A large portion of product cost relates to direct materials and the number if setups is directly proportional to the length if time require to carry out production. When producing I Small lots,production will take place in small scale and transported in small scale so bearing goods to a consumer with large will involve repeated production and multiple shipping to meet up .

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3 years ago

Bill, a local inventor, developed a diet pill that he believes will solve the obesity problem in the United States. Bill wants

dsp73

Answer:

Limited Liablity Company

Explanation:

A Limited liability Company is an independent legal entity. It is a business structure whose owners are not liable for its liabilities. The obligations of a company are separate from those of its owners.

For Bill, a limited company will be the best form of partnership. Forming a company requires two or more people or entities coming together and establishing a new business. Bill and the drug company qualify to create a new company. In the event of liability form sickness, Bill will be liable to the extent of his share contribution.

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3 years ago

Which of the following types of berries are generally cooked before eating?

topjm [15]

Answer:

if you are only picking one the answer is C if you are picking multiple it is B and C

7 0

3 years ago

Read 2 more answers

In 1919, henry ford was sued because:

Lostsunrise [7]

The appropriate response is A. Henry Ford also then sued the Chicago Tribune for criticizing the grounds that it called him an uninformed revolutionary. In court, the guard lawyer has chosen to show Ford's obliviousness and absence of patriotism by posting essential American history inquiries. The vehicle head honcho reliably missed these inquiries, and court transcripts of his nonsense wound up plainly well known perusing at the time.

8 0

3 years ago

An investor wants to purchase an annuity that will pay her £80,000 per year for the next 10 years. If the constant, annual effec

kondaur [170]

Answer:

£718,607

Explanation:

Annuities are investment opportunities that require an initial settlement and gives a series of returns of a fixed amount for a specific number of periods.

In simple terms, the question requires us to calculate the amount to be paid today (Present Value) of an annuity that pays £80,000 per year for the next 10 years.

To establish the [Present Value of the Annuity, the future Cash Flows must be discounted to the Present Value using the appropriate discount rate. In our case, we will use the annual effective interest rate of 2%.

Present Value = PMT × [ 1 - 1/(1+r)^n ÷ r ]

Where,

PMT = £80,000

n = 10

r = 2%

Therefore,

Present Value = £80,000 × [ 1 - 1 / (1.02) ^ 10 ÷ 0.02]

= £718,606.80 or £718,607

Conclusion :

She be willing to pay £718,607 today for the annuity.

4 0

3 years ago