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3 years ago

Are all warranty costs accounted for under the accrual basis of accounting? explain.

1 answer:

8 0

All warranty costs accounted for under the accrual basis of accounting go under this section unless the repair cost does not have reasonable estimation. If the repair cost does not have reasonable estimation, it goes under the cash basis for accounting. The accrual basis method of accounting is when you record transactions for revenue when earned and expenses as they are incurred.

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Answer:

Correct option is (b)

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Here, Get smart university plans to increase tuition fees assuming that there will be no change in demand for the seats offered by the university due to increase in price. So, it assumes that demand is inelastic.

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3 years ago

A recent social media promotion gathered headlines for humanizing what landmark building in new york city?.

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A recent social media promotion gathered headlines for humanizing a landmark building in new York city made in C NN news.

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This is known to be a thing such as building, a large tree, or a statue. It is one that can easily be seen and that can help a person find the way to a place near it.

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2 years ago

The UCC rule that says that a merchant who offers to buy, sell, or lease goods and gives a written and signed assurance on a sep

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<h3><u>A Firm Offer: What Is It?</u></h3>

When goods are sold, a firm offer is deemed to have been made when a guarantee to keep the offer open has been signed and the selling merchant meets the requirements for a merchant under the Uniform Commercial Code. Customers frequently ask for a definite offer so they can be certain of their cost over a predetermined period of time. A lot of retailers also request definite offers from their suppliers. Firm offers have a number of benefits, but there is a chance that things could change and the original offer would no longer be appropriate.

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1 year ago

The need to balance practice effects in the repeated measures design is analogous to the need to balance ________ in the indepen

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<span>practice effects and also collaborating </span>

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3 years ago

Denver Mart is considering a project with a life of 5 years and an initial cost of $136,000. The discount rate is 11 percent. Th

Ray Of Light [21]

Answer:

Denver Mart

The net present value of this project given the sales forecasts is:

= $98,400.40

Explanation:

a) Data and Calculations:

Project's estimated life = 5 years

Initial project cost = $136,000

Discount rate = 11%

Initial estimated sales = 2,200 at $26

Revenue in years 1, 2, and 3 each = 2,200 * $26 = $57,200

Sales forecast of Year 4 and 5 revised to 1,750 units

Probability of 1,000 * 50% = 500

Probability of 2,500 * 50% 1,250

Total sales forecast = 1,750 units

Revenue in years 4 and 5 each = 1,750 * $26 = $45,500

Present value of revenue:

Year 1, 2, and 3 = $57,200 * Annuity factor

= $57,200 * 3.102 = $177,434.40

Year 4, PV = $45,500 * 0.659 = $29,984.50

Year 5, PV = $45,500 * 0.593 = $26,9815

Year 1 to 5 added = $234,400.40

Present value of revenue = $234,400.40

Present value of costs = 136,000.00

Net present value = $98,400.40

8 0

3 years ago

Are all warranty costs accounted for under the accrual basis of​ accounting? explain.

Are all warranty costs accounted for under the accrual basis of accounting? explain.