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3 years ago

Evaluate the extent to which Wal-Mart's previous revenue policy was consistent with the revenue recognition principle.

Business

1 answer:

Kipish [7]3 years ago

4 0

Answer:

Wal-Mart's previous revenue policy was inconsistent with the revenue recognition principle. It used to recognize revenue when performance obligations have not been met.

Explanation:

In response to SAB 101 issued by the Stock Exchange Commission in 1999, Wal-Mart changed its revenue recognition policy for layaway transactions. Layaway transactions are those in which Wal-Mart sets aside merchandise for customers who make partial payment. Before SAB 101, Wal-Mart recognized all revenue on the sale at the-time of the layaway. After the change, Wal-Mart does not recognize revenue until customers satisfy all payment obligations and take possession of the merchandise.

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The Law of Demand is one of the most famous laws in economics. It states that when the price of a good rises, the quantity deman

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First blank is rises, the second is falls.

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3 years ago

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What are some financial consequences that could happen to a borrower if he or she cannot pay back a car loan from a financial in

Cerrena [4.2K]

The bank can repossess the car and if anything is used as collateral they can claim that as well. It is best to not get yourself in debt you cannot pay off.

One way to calculate debt is to figure out what your income is per week, and divide that by the weekly payments for the car. Lets say you make 3200, and your debt is 450 a week.

As shown below

Income ÷ Payments

3200 ÷ 450 = 0.14

Now multiply that by 100 to get your percentage,

0.14 x 100 = %14

Financial advisors recommend that you keep your debt-to-income ratio under 30%.

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3 years ago

Elaborate on any three internal factors of Jessops’ Group Limited that can influence its functioning

Mariulka [41]

Answer:

The internal factors are factors that are under the control of the company and these can be tangible or intangible in nature.

Explanation:

Examples of three internal factors of Jessops’ Group Limited that can influence its functioning are:

1. Assets of the company: the company has over 200 stores around the UK, and also has an online shop and call center. This will make the company to serve a wide base of customers which can increase the revenue of the UK’s premier photographic retailer.

2. Photo and imaging business: This is a business line which is a key part of the company's product portfolio. The decision of the company to focus its attention on making its imaging business the market leader is because of the stability in its margins during the 2008–09 economic recession in the UK.

3. Participation and investment in social responsibility: The response of the company to the Waste Electrical and Electronic Equipment (WEEE) regulations on the disposal of electronic goods at the end of their life by contributing towards a national fund to assist local councils to develop collection facilities for electronic goods is an example of social responsibility. The creation of a convenient battery recycling points in its stores and effort to increase awareness of the WEEE regulations are part of social responsibility functions that will be seen more favorably by consumers. This can therefore increase the sales of the company.

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3 years ago

Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

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3 years ago

A consumer has taken their elderly parent to a new Gerontology clinic. After leaving they wonder if they made the right choice i

saw5 [17]

Answer:

True

Explanation:

In psychology, the term cognitive dissonance refers to the stress (psychological) that one person experiences when they hold two opposite values or ideas, also, they experience cognitive dissonance when they participate in an action that goes against their values or ideas, creating stress.

In this example, a person took their elderly parent to a Gerontology clinic, after leaving they wonder if they made the right choice. We can see that they might have done something that went against their values or ideas (taking parents to a Gerontology clinic) and the person is starting to wonder if what they did was right and is experiencing psychological distress. Therefore, this is an example of cognitive dissonance.

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3 years ago