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Leviafan [203]
3 years ago
10

A flower shop makes a large sale for $1,200 on November 30. The customer is sent a statement on December 5 and a check is receiv

ed on December 10. The flower shop follows GAAP and applies the revenue recognition principle. When is the $1,200 considered to be recognized? A. December 5 B. November 30 C. December 10 D. December 1
Business
2 answers:
maxonik [38]3 years ago
3 0

Answer:

B. November 30

Explanation:

The revenue recognition principle under GAAP states that revenue has to be recognized when services are performed or sales  made irrespective of its invoicing or collection date.

Since the sale was made on November 30 the revenue is to be recognised on this date.

The other options A and C are the dates on which the statement was sent or the collection date which are not relevant for revenue recognition.

alisha [4.7K]3 years ago
3 0

Answer:

B) November 30

Explanation:

Accrual accounting and the revenue recognition principle state that revenue should only be recognized once the earning process has been substantially completed by the company. In this case, the earning process was completed by the company in November 30 since it sent the flowers that day.

The journal entry should be:

November 30, merchandise sale

Dr Accounts receivable 1,200

    Cr Sales revenue 1,200

Accrual accounting recognizes revenues and expenses during the periods that they actually occur in, not when a cash flow is associated with them (payment or collection).

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Cage company had a net income of $365 million and average total assets of $2,040 million. its return on assets (ROA) is 17.6%.

Net salary is the total net salary after deducting all taxes and other employee benefits. This is the amount deposited in your bank account that you can use for your budget and living expenses. Simply put, Gross Salary - Deductions = Net Salary.

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Nonamiya [84]

Answer: Factee

Explanation:

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How is the price elasticity of demand​ measured? A. by multiplying the percentage change in the​ product's price by the percenta
Lapatulllka [165]

Answer:

How is the price elasticity of demand​ measured?

c. by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price

Explanation:

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8 0
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Please help!!! I need help ASAP!
34kurt
Hi!

 The answer to your question should be B. Pays the difference of the current value to the amount you owe.
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