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V125BC [204]
4 years ago
10

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:Select one:a.

Revenue recognition principle.b. Going-concern principle.c. Objectivity principle.d. Business entity principle.e. Cost principle.
Business
1 answer:
Nitella [24]4 years ago
3 0

Answer:

a. Revenue recognition principle

Explanation:

Revenue recognition principle clearly states the circumstances and conditions under which and when the revenue earned shall be recognized in income statement as per accrual basis.

As a common rule, it is established that when the risk and reward of the product is transferred to the customer, then the revenue shall be recognized, and revenue from monetary transactions like, interest and dividend are based on different rule.

Therefore, correct option is

a. Revenue Recognition Principle

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In periods of rising prices when lifo is used, companies avoid reporting a ________ because a portion of the gross profit must b
Marysya12 [62]
By the use of Lifo in a period where the prices rise, companies avoid to report paper profit, also called phantom profit, as economic gain. Have in mind that in periods of changing prices, the cost flow assumption can have a significant impact onincome and on evaluations based on income. That is why when Lifo is used the companies tend to <span>report the lowest net income </span>
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3 years ago
What are 2 ways to add a customer to QuickBooks Online?
nexus9112 [7]

Answer:

-go to sales

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Explanation:

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3 0
3 years ago
When the increase in the price of one good causes the demand for another good to decrease, the goods are Group of answer choices
miskamm [114]

Answer:

complements.

Explanation:

Complementary goods are those goods that can be used together. When there is complementary goods so if there is a rise in the price of one good so it reduced the quantity demanded for that particular good so automatically its complementary good demand is also reduced as the goods are used together

Therefore as per the given situation, the option 2 is correct

8 0
3 years ago
Classify the following topics as relating to microeconomics or macroeconomics.
GalinKa [24]
A. Micro
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C. Micro
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7 0
3 years ago
Suppose an initial investment of $100 will return $50/year for three years (assume the $50 is received each year at the end of t
sukhopar [10]

Answer:

Since the NPV is positive, it is a profitable investment.

Explanation:

Solution

Given that:

The initial investment of $100 would be considered as an outflow.

The inflow for the next three years will be =$50

The discount rate r = 0.2

To find or determine the probability of the investment, discount the future of outflows and inflows. the following formula is applied or used  to find the present value of inflows

PV = FV/(1 + r )^k

Where

PV = present value

FV =future value

r = discount rate

k = time period

Now,

For k =1

PV = 50/(1 + 0.2)

=$41.67

So,

PV  for k = 2 is $34.72 and for k =3 is $28.94

Thus,

The net present value can be calculated by the difference between the outflows and total inflows

NPV =$100- ($41.67 + $34.72 + $28.94)

=$5.33

6 0
3 years ago
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