Answer:
The payback period in years is closest to;
B). 3.00
Explanation:
<em>Step 1: Determine the total cost of the go-kart</em>
Using the expression;
Total cost=purchase cost+annual depreciation×number of years
where;
purchase cost=$5,100
assume annual depreciation=0
number of years to payback=n
replacing;
Total cost=5,100+(0×n)=5,100
<em>Step 2: Total cash inflows</em>
Total cash inflows=(1,700×n)=1,700 n
<em>Step 3: Determine payback period</em>
Equate total cost to total cash inflows
5,100=1,700 n
n=5,100/1,700
n=3
The payback period in years is closest to 3 years
Answer:
<u>January 1, 2017</u>
Debit: Accounts Receivable $2800
Credit: Deferred Revenue[Wiring Base] - $1120
Credit: Deferred Revenue[Shelving Unit] - $1680
Narration: Contract Detail and invoicing of the client.
<u>February 5, 2017</u>
Debit Deferred Revenue[Wiring Base] - $1120
Credit Revenue Account - [Wiring Base] - $1120
Narration: Revenue recognition of Wiring Base delivered to customer
<u>February 25, 2017</u>
Debit Deferred Revenue[Shelving Unit]- $1680
Credit Revenue Account - [Shelving Unit] - $1680
Narration: Revenue recognition of Shelf delivered to customer
<u>February 25, 2017</u>
Debit: Bank - $2800
Credit: Accounts Receivable - $2800
Narration: Payment received in settlement of contract fully delivered
Explanation:
The question is an example of a Performance Contract.
A Performance Contract is an agreement with a customer by a vendor to discharge a service or provide goods that are distinct from each other. The accounting for this obligations will therefore be recorded and recognized separately.
It is also important to note that the services or goods must be separately identifiable and the customer must be able to derive from each goods on individually or jointly.
The rule is to
- Recognize the contract and invoice amount with the customer as Deferred Income.
- Identify the distinct obligations and services to be provided.
- Identify the transaction amount for each service or good.
- As each obligation is met, the revenue is finally recognized and transferred from Deferred income.
Answer:
100 labor will be hired to minimize the costs of producing 200 units of output.
Explanation:
Maximising profit
Profit (Pr) = P*Q - Cost
= P*Q - 5L - 20K
= P*4(LK)^0.5 - 4L - 20K
dPr/dL= P*2(K/L)^0.5 - 4 = 0
dPr/dK = P*2(L/K)^0.5 - 20 =0
We know equilibrium condition
MPL/MPK = w/ r
= 5/20
= 0.25
MPL = 2(K/L)^0.5 MPK = 2(L/K)^0.5
K/L = 0.25
K = 0.25L
200 = 4(0.25L^2)^0.5
=4*0.5*L
L = 100
Therefore, 100 labor will be hired to minimize the costs of producing 200 units of output.
A local sporting goods store offers 30% off the local high school spirit wear during homecoming week, promotion is the correct answer
The use of promotion as a marketing tool helps suppliers and buyers communicate with one another. By doing this, the vendor seeks to persuade and influence customers to purchase their goods or services. It helps to inform consumers about the company, its goods, and its services.
Marketing promotion is characterised as a kind of interaction between a buyer and a seller in which a buyer persuades his or her audience to purchase the things being offered. The major goals of promotion are to build brand loyalty, interest in the product or service, and sales.
To learn more on promotion
brainly.com/question/24180792
#SPJ1
Answer:
The correct answer is A
Explanation:
There is a direct relationship among the adequacy of the internal control as well as the ability of the auditor to rely on the procedures of the substantive analytical. When the entity does not have the efficient internal controls, then the auditor will rely on the procedures.
There is an inverse relationship among the RMM ( stated as risk of the material misstatement) as well as the ability of the auditor to rely on the procedures. And high RMM states that the internal control cannot be relied on to detect the material misstatement on the financial statements, which cause the auditor to rely on the tests of controls.
And there is a direct relationship among the predictability of the relationships among the data and the ability of the auditor to rely on the procedures. When the relationships are predictable, then the auditor could create a meaningful expectations which cause the procedures to be more efficient in detection of material misstatement.
