Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments.
Answer:
The correct option is C.
Explanation:
Based on<em> IFRS 15 Revenue from Contracts</em> <em>with Customers:</em>
- a contract is an agreement between two or more parties that creates enforceable rights and obligations.
- revenue is an income arising in the course of an entity's ordinary activities.
The recognition of income arising from the supply of garbage bins and cleaning services is<em> bona fide</em>, since the two services are in the company's ordinary activities.
- When the supply of the garbage bins took place, delivery took place and ownership has been transferred to the client, so Binz Company can recognize the income as earned.
- The contract for 5-year cleaning services has to be recognized over the service year in line with accrual principle in accounting.
Answer:
price ceiling and a surplus
Answer:
April, 1
DR Prepaid Insurance .............................................................$23,000
CR Cash ........................................................................................................$23,000
Dec, 31
DR Insurance Expense.............................................................$8,625
CR Prepaid Insurance................................................................................$8,625
Working
Insurance expense;
April to December = 9 months
= 23,000 * 9/24 months
= $8,625
Nov, 1
DR Cash ......................................................................................$16,800
CR Deferred rent revenue .....................................................................$16,800
Dec, 31
DR Deferred rent revenue ...................................................$5,600
CR Rent Revenue......................................................................................$5,600
Working
= 16,800 * 2/6 months
= $5,600
Answer Balance sheet December31
$
Common stock. 100,000
Paid in capital. 3,600,000
Retained earnings. 1,610,000
Total. 5,310,000
Explanation:
The equity section of the balance sheet contains the equity issued and other capital provided by the owner for running the company.
The retained earnings represents balance from the previous years income accounts balance.
The current year income account balance at the year end is added to the accumulated retained earnings balance at the beginning of the year.
This is why $510,000 was added to $1,100,000.