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SOVA2 [1]
3 years ago
14

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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Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n)6% interest rate to invest in the stock market.
elena-14-01-66 [18.8K]

Answer:

D)-26%

Explanation:

The computation of the realized return on your investment is shown below:

= (Rate of return × total investment) - (interest paid)

= (-10% × $20,000) - (6% × $1,000)

= (-$2000 - $600)

= -$2,600

Now  the Rate of return is

=(-$2,600 ÷ $10,000)

= -26%

hence, the realized return on your investment is -26%

Therefore the correct option is D.

3 0
3 years ago
Gugenheim, Inc., has a bond outstanding with a coupon rate of 7.7 percent and annual payments. The yield to maturity is 8.9 perc
Anna [14]

Answer:

Bond price= $1,793.62

Explanation:

Giving the following information:

Face value= $2,000

Number of periods= 17

Cupon rate= 0.077

YTM= 0.089

T<u>o calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 154*{[1 - (1.089^-17)] / 0.089} + [2,000/1.089^17)

Bond Price​= 1,324.21 + 469.41

Bond price= $1,793.62

3 0
3 years ago
Dr. Beswick was writing questions for a test, but found herself listening to reggae music coming from an adjoining office, and t
Svetradugi [14.3K]

Dr. Beswick was writing questions for a test, but found herself listening to reggae music coming from an adjoining office, and thinking about her upcoming trip to the Caribbean. She is experiencing  <u>attentional deficit</u>.

<u>Explanation</u>:

Attention deficit disorder (ADD) is a kind of neurological disorder that causes difficulty in concentration, lacking attention and facing many problems in completing tasks and social interaction.

Brain injury, genes and exposure to environment toxins are some of the causes of the attention deficit disorder.

In the above scenario, Dr. Beswick was attending a test. She was distracted by the reggae music that was coming from the adjoining office. After listening to the music she started thinking about her upcoming trip to Caribbean. Dr. Beswick was affected by attentional deficit disorder.

7 0
3 years ago
A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in
slamgirl [31]

A buyer agrees to purchase real property by making monthly payments to the seller and then receiving a deed at a later point in time. such an agreement is known as a/an purchase-money mortgage.

What is purchase-money mortgage?

A purchase-money mortgage is a mortgage that the seller of home issues to the borrower as part of the sale of the property. This is typically done in circumstances where the buyer is unable to qualify for a mortgage through conventional banking channels. It is also known as seller financing or owner financing. In circumstances when the buyer is taking over, the seller's mortgage, and seller financing makes up the difference between the mortgage's outstanding balance and the property's sales price, a purchase-money mortgage may be employed.

What is one of the disadvantages of the purchase money mortgage?

One drawback is that you are still, and will continue to be, the home's legal owner. In the event that those buyers turn out to be dishonest, you can be left with damaged properties. Another drawback is that it could be challenging to evict or foreclose on a buyer who defaults on a loan.

Learn more about purchase-money mortgage: brainly.com/question/20711780

#SPJ4

7 0
2 years ago
Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question par
swat32

Answer:

$96,870

Explanation:

The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.

If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.

Therefore, 2017 corrected net income

= $89,770 + $7,100

= $96,870

4 0
3 years ago
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