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andrew-mc [135]
4 years ago
8

Evan Corporation provided consulting services for Kensington Company in 2015. Evan incurred costs of $48,000 associated with the

consulting and billed Kensington $72,000. Evan paid $32,000 of its costs in 2015 and the remaining $16,000 in 2016. Evan received $36,000 of its billing in 2015. Kensington paid the remaining $36,000 in 2016. Evan reports on the accrual basis of accounting. How much is Evan’s 2015 and 2016 profit related to the Kensington consulting?
Business
1 answer:
lisov135 [29]4 years ago
3 0

Answer:

2015 - $24,000

2016 - $0

Explanation:

The computation of profit for each year is shown below:

For 2015:

The profit = Service revenue - expenses incurred

                = $72,000 - $48,000

                = $24,000

For 2016:

There is no transaction to record under the accrual basis of accounting. So, the profit is zero

As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts

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Answer:

B. False

Explanation:

According to the path-goal theory, the participative style is recommended when group members are performing repetitive tasks is False.

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7. Which of the following characteristics should exist to
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4 0
3 years ago
Precision Camera Services started the year with total assets of​ $120,000 and total liabilities of​ $40,000. The company is a so
eimsori [14]

Answer:

$125,000

Explanation:

Opening values of;

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3 0
3 years ago
The industry-low, industry-average, and industry-high cost benchmarks on p.6 of each issue of the Footwear industry report
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4 0
4 years ago
MG Lighting had sales of 500 units at $100 per unit last year. The marketing manager projects a 15 percent decrease in unit volu
kakasveta [241]

Answer:

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