All categories

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.

You might be interested in

Because resources are scarce, if society produces more of one commodity, it has to sacrifice some amount of another commodity. T

ycow [4]

Answer:

C. the opportunity cost

Explanation:

The opportunity cost -

It refers to the amount of benefit received by the business , investors or an individual , during the process of selecting any alternative , is referred to as the opportunity cost .

These cost can be ignored very easily , in case not seen properly .

The opportunity cost can very well be used to any important and educational decisions for the betterment of the company or firm.

Hence , from the given information of the question,

The correct option is C. the opportunity cost .

8 0

2 years ago

Read 2 more answers

Hazel owns an event planning company that specializes in very high-end events. Several years ago, Hazel purchased a magnificent

Nastasia [14]

Answer:

D. If Hazel sells the chocolate fountain for $3,300, she will have a $1,500 capital gain.

Explanation:

I´m assuming that Hazel is a person that owns this event planning company.

The current book value of the chocolate fountain = purchase cost - accumulated depreciation = $3,000 - $1,200 = $1,800

If the chocolate fountain (or any asset) is sold at a higher price than book value, then a capital gain must be recognized. If the chocolate fountain is sold at a lower price than book value, then a capital loss should be recognized.

$3,300 (selling price) - $1,800 (book value) = $1,500 capital gain

6 0

2 years ago

Coca Cola's SWOT matrix analysis

Contact [7]

Explanation:

A SWOT analysis is a framework that is used to analyze a company's competitive positioning in its business environment. Coca-Cola is carefully reviewing its SWOT analysis and using it to make strategic decisions. ...

4 0

3 years ago

Over the past five years, Teen Clothing stock produced returns of 18.7, 5.8, 7.9, 10.8, and 11.6 percent,respectively. For the s

Alexandra [31]

Answer:

The correct answer is C. 7.22 percent

Explanation:

To find the arithmetic risk premium for the 5 year period, the formula is

Average risk premium for the period = Sum of risk premium for each year / number of years = ∑ra(i) - rf(i) / n

ra = asset or investment return / 100

rf = risk free return / 100

Where i represents each year.

Sum of risk premium for each year = (0.187 - 0.052) + (0.058 - 0.034) + (0.079 - 0.028) + (0.108 - 0.034) + (0.116 - 0.039) = 0.361

Average risk premium = 0.361 / 5 = 0.0722 = 7.22 / 100 = 7.22 percent

8 0

2 years ago

Broadbent's model is called an early selection model because

Reptile [31]

Broadbent's model is called an early selection model because <span>the filtering step occurs before the meaning of the incoming information is analyzed.</span>

4 0

2 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.