Answer:
<u>January 1, 2017</u>
Debit: Accounts Receivable $2800
Credit: Deferred Revenue[Wiring Base] - $1120
Credit: Deferred Revenue[Shelving Unit] - $1680
Narration: Contract Detail and invoicing of the client.
<u>February 5, 2017</u>
Debit Deferred Revenue[Wiring Base] - $1120
Credit Revenue Account - [Wiring Base] - $1120
Narration: Revenue recognition of Wiring Base delivered to customer
<u>February 25, 2017</u>
Debit Deferred Revenue[Shelving Unit]- $1680
Credit Revenue Account - [Shelving Unit] - $1680
Narration: Revenue recognition of Shelf delivered to customer
<u>February 25, 2017</u>
Debit: Bank - $2800
Credit: Accounts Receivable - $2800
Narration: Payment received in settlement of contract fully delivered
Explanation:
The question is an example of a Performance Contract.
A Performance Contract is an agreement with a customer by a vendor to discharge a service or provide goods that are distinct from each other. The accounting for this obligations will therefore be recorded and recognized separately.
It is also important to note that the services or goods must be separately identifiable and the customer must be able to derive from each goods on individually or jointly.
The rule is to
- Recognize the contract and invoice amount with the customer as Deferred Income.
- Identify the distinct obligations and services to be provided.
- Identify the transaction amount for each service or good.
- As each obligation is met, the revenue is finally recognized and transferred from Deferred income.
Answer: (B) The firm is using a regional approach to international expansion
Explanation:
The Skaredykat Inc., is one of the firm which is using a regional approach or strategy for the international expansion purpose beyond its actual home market.
A regional approach is one of the type of business strategy that helps in boost the performance of an organization and it is typically used in the global initiatives.
According to the given question, The firm is using the regional approach for the purpose of international expansion that also include its home country and by using the proper business planning and also strategies we can easily expanding the business into international level.
Therefore, Option (B) is correct answer.
Answer:
B) in the short run, an unexpected change in the price of an important resource can change the cost to firms.
Explanation:
The short run aggregate supply (SRAS) curve is upward sloping because as the price of goods and services increases, the quantity supplied will increase. In the short run, wages are more sticky than prices, and businesses can adjust prices more rapidly than employees can get a raise. This will result in businesses increasing their profit margins as the general level of prices increases, therefore the SRAS curve will be upward sloping.
An unexpected change in the price of a key input will shift the entire SRAS curve either to the right (price of key input decreases) or to the left (price of key input increases).
Answer:
B
Explanation:
Depreciation is the uniform decrease in the value of an asset over a period until the salvage value is reached.
It is given by :
Annual depreciation expense = (cost of asset - salvage)÷ useful life of the asset
Therefore the accumulated depreciation would not equal the original cost of the asset at the end of its estimated useful life because the salvage value will be deducted from cost of asset under declining-Balance.
