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LekaFEV [45]
3 years ago
5

Peace of mind provides​ house-sitting for people while they are away on vacation. Some of its customers pay immediately after th

e job is finished. Some customers ask that the business send them a bill. As of the end of the​ year, Peace of Mind has collected $900 from​ cash-paying customers. Peace of MindPeace of Mind​'s remaining customers owe the business $1,200.
How much service revenue would Peace of MindPeace of Mind have for the year under the

a. cash​ basis?

b. accrual​ basis?

A. under the cash basis, Peace of mind will record $_______ of service revenue for the year.

B. Under the accrual basis, Peace of mind will record $_______ of service revenue for the year.
Business
1 answer:
Svet_ta [14]3 years ago
4 0

Answer:

a. Cash basis - Service revenue is $900

b. Accrual basis - Service revenue is $2,100 (which is $1200 + $900)

Explanation:

In accounting, there are 2 basis for recognizing transactions; these are cash basis and accrual basis.

In cash basis, sales and expenses are not recorded unless cash has been collected and paid respectively. In the accrual basis of accounting, expenses and sales are recorded when incurred and earned respectively.

Revenue earned under the accrual basis would therefore include the revenue for which cash has been collected and those for which cash is yet to be collected.

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Answer: The correct option is C.

Explanation: From the scenario given above, we can see that Thomas has not shown any intention to replace the expensive team members, the only option in this case would then be to properly utilize their expertise to the advantage of the company.

In order to do this therefore, a SWOT analysis would need to be carried out and utilized in gaining an edge over the competition.

In this case, Thomas would make sure that the expertise of all his team members are brought to bare, the company would analyze the competition to see where it is lacking in customer satisfaction, and then try to gain the upper hand by including features in their product that the competition does not have in theirs.

This strategy will help in achieving a competitive advantage.

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Eddi Din [679]

Answer:

The correct answer is letter "C": Using one very secure password for all of your major financial accounts.

Explanation:

Using one password -r<em>egardless of how secure it could be</em>- for all the different accounts an individual might have increases the chances that in front of identity theft, the attacker will get the most of the individual's financial assets. <em>It is recommended to have different passcodes with different accounts and avoid using personal information within the passwords.</em>

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3 years ago
An automotive​ manufacturer, Aminus−2 ​Auto, provides maintenance services to Mako. In​ exchange, Aminus−2 Auto received 500500
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makvit [3.9K]

Answer:

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Explanation:

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The concept of a double-entry accounting system is based on the fact that any transaction increases or decreases one side of the accounting equations and simultaneously decreases or increases the opposite side. The debit side must match the credit side for the account to balance.

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