Answer: The income statement should reflect $15,000.
Explanation: The reason is because accounting procedures are always guided by certain principles or concepts. One of such concepts is the Realization Concept. This simply states that income is considered to have been earned when the goods/services have been dispatched /rendered to the client and the client has incurred liability for such (or has accepted his/her indebtedness). The Accrual Concept is also applicable in the above instance because this concept/principle states that revenues and expenses are recognized as soon as they are earned and incurred and not when money is expended or received. So basically, XYZ Law firm has provided services for two clients. One of them has paid while the other will pay sometime later. Both of them are already recognized as revenue and the current income statement will reflect revenue transactions to the tune of $15,000.
Answer:
Explanation:
Ready to speed things up?*
* For less than the price of a sandwich. Yum.
“This app is so much more than I expected. I was just needing help to figure out a math problem, but I was surprised with what I found.”
Katie B, 7th grade student
Get ahead of the class with Brainly Plus!
Skip the ads
No vids, no banners. You'll get to fly through answers as fast as you want.
Get faster answers
Your question will go to the front of the line whenever you ask one.
Achieve higher grades
84% of Brainly Plus students get better grades. You can be one of them.
Question
What are the steps an Involver follows for planning
Answer:
C) 3
Explanation:
The current ratio is the firms Current assets relative to its current liabilities.
It can be calculates as follows,
Current Ratio = Current assets / Current liabilities
Current Ratio = 240,000 / 80,000
Current ratio = 3
This signifies a healthy ratio as the company has 3 times as much current assets as compared to its current liabilities.
Hope that helps.
