Answer:
Is the process of allocating to expense the cost of plant asset.
Explanation:
Depreciation is an expense indicating a decline in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's shown on the income statement debit side. It is a non-cash item which has no effect on the cash balance.
Moreover, it is to charged over the specified number of useful life so that proper amount of the depreciation should be recorded in the books of accounts
Answer:
Explanation:
Net sales - $894,250
Cost of Goods - $ 616850
Average account receivable - $40,650
Account receivable at year end - $28200
Average inventory - $182000
Inventory at year end - $158,000
Inventory turn over
Cost of Goods sold / Average inventory for the period
616850/182000= 3.40 times
No of days sales in inventory = Ending inventory / Cost of Goods sold *365
158000/616850*365 = 93.5 days
Account receivable turnover = net credit sale / average receivable
894250/40650=21.9
No of days sales in account receivable -
Receivable at year end/total credit sales*365
28200/894250*365= 11.5 days
The correct answer is True. When ownership of the items passes to the customer, revenue is realised. In addition to the requirements for determining when control transfers, a reporting entity must also satisfy certain additional requirements for a customer to have achieved control in a bill-and-hold arrangement.
A bill and hold sales arrangement allows for payment in advance of the item's delivery. This is a sales agreement when a product seller invoices a consumer up front but doesn't actually ship the thing until later.
In a bill and hold transaction, the vendor does not deliver the purchased goods to the customer, but the associated income is still recorded. Under this structure, revenue cannot be recognised until a number of severe requirements have been satisfied. The possibility of falsely recognising revenue too early exists otherwise.
To learn more on bill and hold arrangement
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People can make poor investments, fail to add to their savings, and decide to spend their money rather than saving or investing.
I believe it’s b..... hope this helps pls tell me if I’m wrong! <3