Answer:
B: $1,500 is recognized this year, $ 9,000 next year and $ 7,500 in last year of contract.
Explanation:
Steven has adopted the accrual method in recording its revenue.
Accrual is an accounting concept which means expenses and revenues are recorded by a business when they are incurred not when cash is received or paid.
Accrual basis of accounting gives more accurate and true results as compare to cash basis accounting.
The payment received in September of $ 18,000 was the income for 24 months so it was wrong to record the whole amount as an income in September.
In the first year 2 months of income is recorded for November and December ($ 18,000÷24 = $750 per month) $750 × 2 = $1500.
In the second year 12 months revenue will be recognized ($750 per month × 12 = $ 9,000)
In the last year 10 month remained out of 24 months so the income recognized was ( $750 × 10 = $ 7,500)
Answer:
The correct answer is A. Microsoft sells Software to British companies
Answe
Explanation:
Discuss the rationale of organizing an industrial strike in resolving employee dispute with the state, focusing on the detrimental effects strikes has on various stakeholders in an economy
Answer:
b technological progress shifting the demand for horses to the left
Explanation:
The development of automobiles and other machinery reduced the demand for their use.
Answer: Option a
Explanation: Diversification in finance is the method of distributing resources in a manner that decreases the vulnerability to any particular commodity or risk.
A common way to diversify is by investing in a range of investments to minimize risk or uncertainty.
If asset values adjust in complete synchronization, a diverse portfolio will have less variation than its constituent assets ' weighted average variance, and often less variation than its constituents least volatile.