Answer:
In the accrual accounting system, revenue is recognized in the books once it is earned. This is when the service or goods has been delivered and acknowledged by the customer. Expenses are recorded in the period incurred under this system of account.
Under cash basis accounting, revenue is only recognized when cash has been received. Expenses are also recognized when cash is paid.
a. Revenue to be reported is $820 million.
Debit Cash $800 million
Debit Accounts receivable $20 million
Credit Revenue $820 million
b. $520 million
c. Using cash basis, Revenue to be reported is $800 million
Debit Cash $800 million
Credit Revenue $800 million
Total expense will be $610, the amount paid.
The accrual basis would record a revenue that is $20 million more than that recognized on the cash basis knowing that the revenue principle requires that revenue be recognized once the goods have been delivered to the customer or the service has been rendered and acknowledged by the customer.
d. The income statement is the financial statement that reports revenue and expenses. while the balance sheet records cash receipt and cash payments.
Explanation:
Cash is an asset recognized in the balance sheet while revenue and expenses are recognized in the statement of profit or loss or income statement. Cash and accrual bases are 2 systems of recognizing transactions in the books. The major difference between them is about cash collection or payments.
Answer:
the stock price will be of 203.06 dollars
Explanation:
Price earning ratio: 22
PE: price / earnings per share
payout ratio: 466,668/864,200 = 0.54
so: retention ratio: 0.46
return on equity: 864,200 / 5,800,000 = 0.149 = 14.90%
sustainable grow rate: return on equity x retention ratio
0.149 x 0.46 = 0,06854
The next-year income, will grow by 0.06854
864,200 x 1.06854 = 923,432.268
There is 100,000 shares outstanding so:
EPS: 9.23 dollars
Price/Earning ratio: 22 Therefore Price = 9.23 x 22 = 203.06 dollars
A checking account is important to keep the money for easy withdrawals through usually an Automated Teller Machine, or ATM
<h3>What is Accounting?</h3>
This refers to the record-keeping of financial records with the aim of keeping track of the finances of a business or corporation.
Please note that your question is incomplete so I gave you a general overview to help you get a better understanding of the concept.
Read more about accounting here:
brainly.com/question/26243955
The likely reason as to why the market will overproduce
goods that have external cost because of the fact that the producers experience
a lower cost compared to the society making the market produce an overproduction
of goods associated to external costs.
Answer:
$10,000
Explanation:
Depreciation is charged to every asset based on the life and usage of such asset.
Straight line depreciation method charges equivalent depreciation each year of the useful life of the asset.
Here, as provided straight line depreciation = 
Here, cost of asset = $48,000
Salvage value = $8,000
Thus, numerator in fraction = $48,000 - $8,000 = $40,000
Useful life of the asset = 4 years
Therefore, depreciation expense for each year = 
It will be same for each year, therefore, depreciation expense for year 2 = $10,000
