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Effectus [21]
2 years ago
11

If you were an investor in a rent-to-own business that takes more than a year to collect revenues while the customers take immed

iate possession of the goods: Would you prefer to have the income statement prepared by cash basis or by accrual basis and why
Business
1 answer:
ratelena [41]2 years ago
4 0

Answer:

I would prefer cash basis over the accrual bases.

Explanation:

Remember accounting entries are prepared on the basis of Accrual Principle. That is transactions are recognized when they meet the definition and recognition criteria of assets, liabilities, incomes and expenses not when cash is received. Taxable Income calculation follows this accrual principle as well.

This means an will mean that as an investor in a rent-to-own business, i will be taxed more often on the Revenues which are not yet paid for and this will be bad for my liquidity.

I would want to have my cash and pay the taxes when i have actually received cash on my revenues so that i wont run into liquidity problems. This is only possible if the cash basis was to be used.

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Search marketing involves placing _____ on the organic results page of search engines.
Rus_ich [418]

Answer: Advertisements

Explanation:

Search engine marketing is a form of internet marketing, where website owners increase their website's views from search engine results, this can be achieved through paid or unpaid adverts.

The paid adverts may include the use paid Google adverts while the unpaid adverts would include the use of search engine optimization.

8 0
3 years ago
Kelly, a manager, studied the performances of the various business units of her organization. After making an assessment, Kelly
Lina20 [59]

Answer:

Conceptual skills

Explanation:

Conceptual skills -

It refers to the ability which enables the person to understand some complicated situation or problem and give a better and innovative alternative for the problem , is referred to as the conceptual skills .

It is the human tendency to deal with some peculiar and strange situation .

Hence , a leader is required to have such skills to deal with the team in a better manner .

Hence , from the given scenario of the question ,

The correct answer is Conceptual skills .

8 0
3 years ago
Review and complete the following statement regarding the Income Summary account.
torisob [31]

Answer:

Revenues are Credited, Expenses are Debited and the difference of Revenue and Expenses is credited in the Retained Earnings.

Explanation:

The revenue and retained earnings account are credit in nature and expenses are debit in nature.

This can be Explained from the following equation:

Closing Equity = Opening Equity + (Revenue - Expenses)

Closing Equity - Opening Equity = (Revenue - Expenses)

Earnings Retained by the Company = (Revenue - Expenses)

So the difference of the revenues and expenses goes to retained earnings. If the answer of the difference is positive then the retained earnings are credited otherwise it is credited. So as I said that revenues are credit in nature so if their is profit (credit is in access of debit or in other words revenues are in excess of expenses) then the retained earnings will be credited and if their is a loss then the retained earnings account will be debited.

8 0
3 years ago
The entry to record a sale of 1500 with terms of 2/7
maxonik [38]

There will be a credit of $1500 to Sales Revenue included in the entry to record a sale for $1500 with conditions of 2/7, n/30.

<h3>Why is there a 2/10 N 30 sales discount?</h3>

Explain the significance of the credit terms 2/10 and n/30. 2% of the invoice amount may be withheld by the buyer if payment is made within ten days of the invoice date. -A 30-day grace period, after which full payment is expected. duration of the discount The time period during which a customer can pay less and receive a financial discount.

The phrase "2/10 net 30" means that the consumer will save 2% if the entire payment is paid within 10 days. If not, full payment must be made in 30 days.

Learn more about credit terms 2/10 and n/30: brainly.com/question/18716859

#SPJ4

4 0
1 year ago
Diamond Design Company makes custom chairs for individual customers. On September 1, there was one job in process, Job 243, with
emmasim [6.3K]

Answer:

c. $30,512

Explanation:

Please see attachment

5 0
3 years ago
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