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OlgaM077 [116]
2 years ago
10

The primary objective of expense recognition is to Promote comparability between financial statements of different periods. Prov

ide timely information to decision makers. Provide full disclosure. Record expenses in the period that related revenues are recognized.
Business
1 answer:
Mumz [18]2 years ago
8 0

Answer:

Record expenses in the period that related revenues are recognized.

Explanation:

Revenues are recognized when earned, not necessarily when cash is received.

According to the accrual basis accounting, transactions are recorded in the periods in which the event occur. Companies recognize revenues when they perform services or sell products (rather than when they recived cash). Expenses are recognized when incurred (rather than when paid).

This principal is in accordance with generally accepted accounting principles (GAAP).

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4.37.-On January 1st, Frank bought a used car for $72,000 and agreed to pay it as follows: ¼ down payment; the balance to be pai
Iteru [2.4K]

Answer:

$1,664.099

Explanation:

The amount that should be recognised by the Frank in respect of monthly payments to be made in respect of used car shall be determined using present value of annuity formula as follows:

Total amount to be paid= $72,000*3/4=$54,000

Total amount to be paid=Present value of annuity=R+R[(1-(1+i)^-n)/i]

Where

R=Equal monthly payment to be made=?

i=Interest rate compounded monthly=9/12=0.75%

n=number of payments involved=36

Present value of annuity= $54,000

$54,000=R+R[(1-(1+0.75%)^-36)/0.75%]

$54,000=R+R(31.45)

$54,000=R*32.45

R=$1,664.099=equal monthly payment

4 0
3 years ago
Raphael Corporation’s common stock is currently selling on a stock exchange at $157 per share, and its current balance sheet sho
IRINA_888 [86]

Answer:

$85 per share and $35 per share

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the par of shares by using following formula:-

Corporation’s Preferred Stock‘s Par Value is

= Preferred Equity ÷ No. of Preferred Outstanding Shares  

= $85,000 ÷ 1,000

= $85 per share

Corporation’s Common Stock‘s Par Value is

= Common Equity ÷ No. of Common Outstanding Shares  

= $140,000 ÷ 4,000

= $35 per share

 

7 0
3 years ago
Across mass marketing, niche marketing, and one-to-one marketing, the underlying method of dealing with heterogeneity is the sam
katovenus [111]

Across mass marketing, niche marketing, and one-to-one marketing, the underlying method of dealing with heterogeneity is the same: focus on smaller group such that the needs of each group are similar until the focus reaches individual customer.

<h3>What is the mass marketing?</h3>

Mass marketing is used to refer to the type of marketing that is done on a large scale. In this type of marketing, the producers would have to ignore the segments that may exist in the market.

Hence they would have to market the product to the entire market so that it gets to a larger audience hence it may bring about a greater market for the producer.

Read more on marketing here: brainly.com/question/25369230

#SPJ1

5 0
1 year ago
Sarah purchased a stock one year ago at a price of $32 a share. In the past year, she has received four quarterly dividends of $
alexdok [17]

Answer:

$6.

Explanation:

Holding stock of a Public company entitles you to a potential return on your investment which can be in the form of Capital Appreciation/Gain, that is buying at low and selling at high, or Dividends received. In the given question, we are not required to calculate total return rather capital gain, simply the difference between purchase price and selling price, so there is no need to account for dividends. The formula for Capital Gain is given below:

                Capital Gain / Appreciation = Selling Price - Purchase Price

⇒ Capital Gain = 38 - 32 = $6.

7 0
3 years ago
D
chubhunter [2.5K]

Answer:

False

Explanation:

The situation above is called the "pitch." This is a <em>process of persuasion </em>whereby people present their ideas to their<u> potential clients or investors.</u> This is done in order to achieve a particular purpose. In the situation above, the ad agency's purpose is<em> to win the potential client's account. </em>In order to become successful in pitching ideas, one has to consider some pointers such as <em>getting to the point fast, using a message map, not using too many slides and the like.</em>

So, this explains the answer.

5 0
3 years ago
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