Answer:
When services are performed
Explanation:
Revenue recognition principle states that revenues should be recognized when they are realized or realizable, and are earned even if cash has not been paid for them.
The implication of the revenue recognition principle is that revenues are recognized immediately goods are transferred or services rendered at an agreed price either cash is received immediately or the cash will be paid at a later date.
All the best.
Answer:
B) 13.4%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The (Market rate of return - Risk-free rate of return) is also known as market risk premium
So, the expected return on portfolio A would be
= Risk free-rate of return + (Beta of factor 1 × risk premium + Beta of factor 2 × risk premium + Beta of factor 2 × risk premium)
= 3% + (0.8 × 3% + 1.1 × 5% + 1.25 × 2%)
= 3% + 2.4% + 5.5% + 2.5%
= 13.40%
Answer:
Explained below
Explanation:
1) From the question, we can deduce that in the short run, there will likely be news of the discovery/invention of a super vaccine which will make the consumers and the businesses to be optimistic about the future of the economy. Therefore, this will in turn lead to an increase in consumption by consumers and thus also lead to an producers making an increase in investment.
2) From answer 1 above, since there is an increase in consumption as well as investment, this will in turn also lead to an increase in the aggregate demand of the economy. Whereas, we are told that the oil market is calm and therefore we can say it does not have an effect on the supply curve.
From the first image attached, increase in the aggregate demand led to an increase in price level from point P to P1 on the y-axis while output output level increased from point Y to point Y1 on the x-axis.
3) In the long run, due to the increase in demand in the short run that makes the supply curve shift to its right, it means the producers will have more of the goods produced. This will in turn reduce the price to its initial level and also increase the output level. From the second diagram, this will lead to a shift long run aggregate supply from LRAS to LRAS1 on the x-axis.
Answer:
The variable cost per unit sold is closest to $11.90.
Explanation:
Only variable manufacturing costs are included in <em>product costing</em> under the variable costing method.
Both the fixed manufacturing costs and non-manufacturing costs are treated as <em>period costs</em>, expensed in the profit and loss.
<u>Calculation of Variable Unit Cost</u>
Direct materials $ 6.60
Direct labor $ 3.65
Variable manufacturing overhead $ 1.65
Total Variable Unit Cost $11.90
Conclusion :
The variable cost per unit sold is closest to $11.90.
Answer and Explanation:
The computation and the journal entries are shown below:
a. The depletion rate is
= $203,200,000 ÷ $12,700,000 tons
= $16 per ton
b. The amount of depletion expense for the current year is
= $16 × $2,980,000
= $47,680,000
c. The journal entry is shown below:
Depletion Expense $47,680,000
To Accumulated Depletion $47,680,000
(Being the depletion expense is recorded)
For recording this we debited the depletion expense as expenses is increased and credited the accumulated depreciation as it reduced the assets