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3 years ago

According to generally accepted accounting principles (GAAP), revenue is recognized as income when:

Business

1 answer:

bogdanovich [222]3 years ago

4 0

Answer:

the transaction is complete and the goods or services are delivered.

Explanation:

According to generally accepted accounting principles (GAAP), the revenue should be recognized when the goods or services are delivered and the transaction is completed in all respects.

The revenue recognition principle applies when the revenue is realized or earned whether cash is received or not plus it also follows the accrual basis of accounting. Here, realizable means that customer received the product but the payment is made at the later date

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On January 1, 2012, Piper Co., purchased a machine (its only depreciable asset) for $600,000. The machine has a five-year life,

kirza4 [7]

Answer:

Piper should report $308,000 as net income for the year . Option C

Explanation:

Accumulated Depreciation till 2014 = [$600,000×(5+4+3)] ÷ 15 = $ 480,000

Book Value at beginning 2015 = $600,000 - $480,000 = $120,000

Depreciation Expense in 2015 = $120,000 ÷ 2 = $60,000

Net Income before depreciation & taxes = $ 500,000

Depreciation = $ 60,000

Electronic Benefits Transfer = Net Income before depreciation & taxes - Depreciation

= $ 500,000 - $ 60,000

=$ 440000

Tax Expenses = $440,000 × 30% = $132,000

Net Income =$ 308,000

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3 years ago

If costs are 85% of sales (and profit is 15%), what is the amount of extra sales needed to equal $1,200 in profit from purchasin

attashe74 [19]

Answer:

$8,000

Explanation:

Given that

Profit = $1,200

Cost = 85% of sales

Profit = 15%

We know that

Sales = Cost + Profit

= 85% + 15%

= 100%

So sales percentage is 100%

Now we use the unitary method to find out the extra sales which would be

= Profit × sales percentage ÷ profit percentage

= $1,200 × 100% ÷ 15%

= $8,000

7 0

3 years ago

What is the purpose of the sherman antitrust act

tamaranim1 [39]

To destory monopolies that were using their power to harm society.

7 0

3 years ago

Read 2 more answers

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are.

BigorU [14]

FOB shipping point

Explanation:

FOB affects the buyer's inventory cost adding liability for shipped goods increases inventory costs and reduce net income.

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1 year ago

Campbell Construction Company expects to build three new homes during a specific accounting period. The estimated direct materia

Alina [70]

Answer:

The driver for employees fringe benefits is direct labor costs whereas the driver for indirect material costs is direct material costs

The total cost of each home is as follows:

Home 1 $188140

Home 2 $268860

Home 3 $408910

Explanation

Find the breakdown of the costs in the attached excel file.

Download xlsx

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3 years ago