Answer:
The necessary entries would be:
Dr Accounts receivable $11,000
Cr Sales revenue $10,000
Cr Deferred revenue $,1000
Explanation:
Revenue should be recognized in the books of account where the selling party has performed its obligation of delivering goods or rendering services as contained in the sales contract.
This contract contains provision of goods -inventory that have been delivered and rendering of services-installation that is in progress, as a result the revenue relating to the former is due to be recognized now while the later would be recognized when is installation is concluded.
Answer:
Clem should specialise in wheat production because he has higher profits there
Explanation:
Clem needs to make a decision on the product that will maximise his profits and not just the number of units of products he can manufacture.
If he produces only wheat he will have profit of 75 bushels * $2 = $150
If he produces only barley his profit will be 125 bushels * $0.80 = $100
This shows that wheat is more profitable for Clem. Even though he can produce more units of barley.
Answer:
Debt
Explanation:
Debt is the lowest cost source of financing because the <em>interest</em> return given to holders of debt has a <em>tax shield</em> (tax deductible) that is provided by the Section 11j of the Income tax Act.
The other sources of finance give a return in form of <em>dividends</em>. Dividends are are not tax deductible hence they attract a huge cost.
Answer:
Option C, Double taxation on profits and individuals
Explanation:
The disadvantages of the corporation form of ownership are as follows -
a) It takes lot of time and hence is time consuming
b) The taxation gets double
c) Also, the formalities/protocols are very tough
Hence, the option C is correct
0.82777 Canadian dollars = 1 US dollars
1 Canadian dollar = (0.82777 /1.000) US dollars
3 Canadian dollars = ((0.82777 /1.000) x 3) = $2.48331
