Answer:
Service revenue of $ 440
Explanation:
When the customer prepays, the revenue is yet to be earned hence the entries required would be a debit to cash account and a credit to unearned or deferred revenue.
As the service is rendered and revenue is earned, debit the deferred revenue account and credit the revenue account with the amount earned.
Since $660 was collected for 6 training sessions
Revenue from a training session
= 1/6 × $660
= $110
After 4 training sessions, revenue earned and to be recognized in the income statement
= 4 × $110
= $440
Answer:
B. Stock analysts can use fundamental analysis to identify undervalued stocks.
Answer:
2 years and 5 months
Explanation:
304,000 Investment
+86,000 operating income
+ 38,000 depreciaton (non-cash expense)
124,000 cash flow per year
<em>Note: </em>The non-cash expense should be excluded from the calculaton of the payback period.
304,000/124,000 = 2.451612903 years
0.451612903 x 12 = 5.419354839
2 years and 5 months
Answer:
A service guarantee is a way to avoid compensating customers for a service failure.
Explanation:
Answer:
Prorating
Explanation:
Prorating refers to the amount that the seller is usually liable to pay the buyer as for the period of closing the deal to the date it is actually closed.
Basically any amount of rent that is earned by the seller on the property which is meant to be sold and that the buyer expected to settle the deal, on a date previous to the actual date on which the deal is done, then the amount of rent for such period is called prorated.
That is the closing amount of expenses or income in between the seller and the buyer, in a real estate transaction.
