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dimulka [17.4K]
3 years ago
12

Colbert operates a catering service on the accrual method. In November of year 1, Colbert received a payment of $9,000 for 18 mo

nths of catering services to be rendered from December 1st of year 1 through May 31st of year 3. When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?
a. $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3.
b. $500 is recognized in year 1 and $8,500 in year 2.
c. $9,000 is recognized in year 3.
d. $2,500 is recognized in year 1 and $6,500 in year 2.
e. $9,000 is recognized in year 1.
Business
1 answer:
german3 years ago
8 0

Answer:

b) $500 is recognized in year 1 and $8,500 in year 2.

Explanation:

Calculation to determine When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?

Calculation for amount recognized in year 1

Payment in year 1= $9,000 ÷ 18 months

Payment in year 1= $500

Therefore Based on the above calculation the amount recognized in year 1 will be $500

Calculation for the amount recognized in year 2

Payment in year 2 = $9,000 - $500

Payment in year 2= $8,500

Therefore The amount recognized in year 2 will be $8,500

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Answer:

Time value of money

Explanation:

The reason is that the money invested today worth more tomorrow. If we have option to pay our supplier $5m after a year is more suitable option than paying him today. The reason is that the amount paid today will be worth $5m but if we pay our supplier after a year then in real terms we have paid the supplier less because money lost its worth by certain percentage during the year. So paying late makes the liability cheaper required their are no interest or other costs.

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Mifflin Co. reported the following for the current year.
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Can an object accelerate if it's moving with constant speed? Yup! Many people find this counter-intuitive at first because they forget that changes in the direction of motion of an object—even if the object is maintaining a constant speed—still count as acceleration.Acceleration is a change in velocity, either in its magnitude—i.e., speed—or in its direction, or both. In uniform circular motion, the direction of the velocity changes constantly, so there is always an associated acceleration, even though the speed might be constant. You experience this acceleration yourself when you turn a corner in your car—if you hold the wheel steady during a turn and move at constant speed, you are in uniform circular motion. What you notice is a sideways acceleration because you and the car are changing direction. The sharper the curve and the greater your speed, the more noticeable this acceleration will become. In this section we'll examine the direction and magnitude of that acceleration.The figure below shows an object moving in a circular path at constant speed. The direction of the instantaneous velocity is shown at two points along the path. Acceleration is in the direction of the change in velocity, which points directly toward the center of rotation—the center of the circular path. This direction is shown with the vector diagram in the figure. We call the acceleration of an object moving in uniform circular motion—resulting from a net external force—the centripetal acceleration

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3 years ago
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
Anna11 [10]

Answer:

                                             Break-event point

Product A                                      6,000 units

Product B                                      6,250 units

Explanation:

<em>The break-even point is the level of activity that a business must operate to equate total revenue to total cost . At the break even point, the business makes no profit or loss., and the total contribution is equal to total fixed cost</em>

<em>The break-even point is calculated as follows:</em>

Total general fixed cost/(selling price - variable cost)

Break-even point = 60,000/(22-12)=6000  units

Product B

Beak-even point = 75,000/(22-10)=6250  units

                                          Break-event point

Product A                                      6,000 units

Product B                                      6,250 units

4 0
3 years ago
A college textbook is selling for​ (US) $140 in the United States. That same textbook sells in Canada for​ (CA) $150. The exchan
dlinn [17]

Answer:

 (US)$136,36

(CA)$154

NO

NO

Explanation:

Hi, to answer the first question we have to divide the price of the textbook in Canada $150(CA) by $1.10.( since  (CA) $1.10 = (US) $1.00.)

U.S. price of the textbook purchased in Canada: 150/1.10 = (US)$136,36

Canadian price of the textbook purchased in the U.S: $140 x 1.10 = (CA)$154

Taking shipping costs into account, (US) $5.00 if we purchase the book in the U.S. and sold in it Canada, it will cost:

$154(CA) + (5(US) X 1.10 ) = 154 (CA) +5.5 (CA)= $159.5(CA)

The textbooks are likely to be purchased in Canada directly, because they are cheaper ( $159.5(CA) >$150(CA))

Taking shipping costs into account, if we purchase the book in the Canada and sold in it the US, it will cost:

$136 + $5 = $141

The textbooks are likely to be purchased in the USA directly, because they are cheaper ( $141(US) >$140(US))

8 0
3 years ago
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