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4 years ago

Cash-basis vs. accrual-basis accounting?

1 answer:

4 0

The cash<span> method accounts for revenue only when the money is received and for expenses only when the money is paid out. On the other hand, the </span>accrual<span> method accounts for revenue when it is earned and expenses goods and services when they are incurred. ... </span>Accrual<span> accounting is the most common method used by businesses.</span>

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Assume the following information for a company with only two products: Product A Product B Total Sales $ 600,000 $ 400,000 $ 1,0

Mice21 [21]

Answer: $406,000

Explanation:

The following can be deduced from the question:

Total sales = $1,000,000

Variable cost = $300,000

Contribution = Sales - Variable cost

= $1,000,000 - $300,000

= $700,000

Contribution ratio = $7000,00/$1,000,000 × 100 = 70%

Fixed cost = $580,000 × 70%

= $580,000 × 0.7

= $406,000

8 0

3 years ago

On July 1, 2015, ABC company filed its Articles of Incorporation with the State of California. All of their correspondence and c

attashe74 [19]

Answer:

Explanation:

When ABC company filed its Articles of Incorporation with the State of California and All of their correspondence and contracts list ABC as ABC Inc. They are already tagged as a corporation with limited liability.

Now; when there is a breach of contract and they are being sued by XYZ Inc. From the knowledge that XYZ file the lawsuit case against ABC, the ABC company will then be treated as a partnership acquainted with unlimited liability instead of a corporation with limited liability they are being known for since they already had a notice from the State of California that their Articles of Incorporation have been rejected.

5 0

3 years ago

Max had $623.22 in his checking account, and a check that he wrote to his landlord for $625.00 was just deposited. This will res

IrinaVladis [17]

I believe it is a overdraft fee.

8 0

3 years ago

Read 2 more answers

Profit-maximizing firms enter a competitive market when existing firms in that market have.

alexdok [17]

Answer:Profit-maximizing firms enter a competitive market when, for existing firms in that market, total revenue exceeds fixed costs.

Explanation:

that is what i think sorry if im not right

6 0

1 year ago

Lance, Inc. has sales of 9,000 units. The contribution margin per unit is $32 and fixed costs total $120,000. Lance's profit is

Andrews [41]

With sales of 9,000 units, contribution margin per unit of $32 and fixed costs total of $120,000, Lance's profit is $168,000.

<h3><u>What is contribution margin?</u></h3>

A gross or per-unit basis might be used to express the contribution margin.
It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.
The selling price per unit less the variable cost per unit is the contribution margin.
The metric, also known as dollar contribution per unit, shows how a specific product affects the company's overall earnings.

Contribution margin offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.

Number of units sold = 9,000.

Contribution margin per unit = $32.

Expenses = $32 × 9000 = $2,88,000.

Profit = $2,88,000 - $120,000 = $1,68,000.

Know more about contribution margin with the help of the given link:

brainly.com/question/14950546

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8 0

1 year ago