Answer:
a. $11,000
b. $2,200
Explanation:
According to the cash basis accounting, the cash is recorded when actual cash is received
But as per the accrual basis of accounting, the revenue is recorded when it is realized or earned whether cash is received or not
So,
a. Cash basis = $11,000
b. Accrual basis
= $11,000 ÷ 10 months × 2 months
= $2,200
Answer:
Spillover cost.
Explanation:
Spillover cost refers to those costs or changes in the value of a certain good that are caused by issues external to the intrinsic characteristics of said good. Thus, for example, external influences such as limitations on oil extraction or the development of electric cars can generate a massive drop in the prices of conventional gasoline cars. Another clear example of this situation is the one described in the question, where a negative change in a certain neighborhood can lower the prices of the houses found there.
Answer:
The answer is: Obligation that has a distant due date exceeding company's operating cycle.
Explanation:
A current liability is a financial obligation due within one year (or one normal operation cycle).
So a financial obligation that has a due date that exceeds a company´s operating cycle should have been directly classified as a long term liability (or a non current liability) in the first place. It simply is not a current liability that is changed into a long term liability, it always was a long term liability.
The other options represent the steps necessary for turning a current liability into a long term liability.
- Intend to refinance the obligation on a long-term basis.
- Demonstrate the ability to complete the refinancing.
- Subsequently refinance the obligation on a long-term basis.
Ideally;
Inventory = Cost of raw materials + Cost of finished goods + Cost of work-in-progress
Assuming this ideal case, Harlan's inventory would be;
Inventory = $14,000+$25,000+$18,600 = $57,600
However, if work-in-progress inventory was listed as $0;
Then, the new work-in-progress would be;
Inventory = 57,600-18,600 = $39,000
This would reduce the inventory for Harlan Enterprises which may affect other financial ratios such as inventory turn-over ratio. As a result, such ratios will not reflect the exact position of the company.
