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3 years ago

When offering financial products to clients, you may:

Business

1 answer:

Anton [14]3 years ago

6 0

Answer:

d. All of the above.

Explanation:

All the three actions are appropriate actions for when offering financial products to clients.

a) is appropriate because prior clients are likely to have most of the information in the company's records.

b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.

c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.

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Explain how accrual accounting differs from cash-basis accounting; apply the revenue and expense recognition principles) During

Nat2105 [25]

Answer:

In the accrual accounting system, revenue is recognized in the books once it is earned. This is when the service or goods has been delivered and acknowledged by the customer. Expenses are recorded in the period incurred under this system of account.

Under cash basis accounting, revenue is only recognized when cash has been received. Expenses are also recognized when cash is paid.

a. Revenue to be reported is $820 million.

Debit Cash $800 million

Debit Accounts receivable $20 million

Credit Revenue $820 million

b. $520 million

c. Using cash basis, Revenue to be reported is $800 million

Debit Cash $800 million

Credit Revenue $800 million

Total expense will be $610, the amount paid.

The accrual basis would record a revenue that is $20 million more than that recognized on the cash basis knowing that the revenue principle requires that revenue be recognized once the goods have been delivered to the customer or the service has been rendered and acknowledged by the customer.

d. The income statement is the financial statement that reports revenue and expenses. while the balance sheet records cash receipt and cash payments.

Explanation:

Cash is an asset recognized in the balance sheet while revenue and expenses are recognized in the statement of profit or loss or income statement. Cash and accrual bases are 2 systems of recognizing transactions in the books. The major difference between them is about cash collection or payments.

5 0

3 years ago

When deciding whether to remain in school, the relevant cost of staying in school is $?

castortr0y [4]

When expressing the relevant of cost in staying in dollar will be $<span>22500 in whole numbers. Staying in school when you are already in college is a challenge, because you are already one step forward to your success so it its hard to stop going to school, you need to do something so that you will be able to continue your schooling.</span>

3 0

4 years ago

The Kitchen Company makes toaster ovens and bread machines. Toaster ovens Sales price per unit: $60 Variable costs per unit: $38

Sever21 [200]

Answer:

The company should produce 7,500 bread machines to maximize profit

Explanation:

Given:

Toaster Ovens Bread Machines

Sales Price per unit 60 135

Less: variable cost per unit 38 75

Contribution Margin per unit 22 60

Machine hours per unit 1 2

Now,

Contribution Margin per Machine Hour = $\frac{\textup{Contribution Margin per unit}}{\textup{Machine hours per unit}}$

thus,

Contribution Margin per Machine Hour 22 30

Since,

The Contribution Margin per Machine Hour for the bread is more, therefore to maximize profits the kitchen company should produce Breads machines.

also,

Number of units to be produced = $\frac{\textup{Machine hours}}{\textup{Machine hours required}}$

= $\frac{\textup{15,000}}{\textup{2}}$

= 7,500 units

5 0

3 years ago

5. What is the real rate of interest for an account that offers a 12% nominal rate of return when the rate of inflation is 6% an

Gelneren [198K]

Answer:

Real interest rate= 0.06 = 6%

Explanation:

Giving the following information:

Nominal interest rate= 12%

Inflation rate= 6%

<u>The inflation rate provides the opposite effect on the interest rate. It decreases the purchasing power of an individual. </u>To calculate the real interest rate, we need to deduct the inflation rate.

Real interest rate= 0.12 - 0.06= 0.06

8 0

3 years ago

Blue Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land for

Ilia_Sergeevich [38]

Answer:

Blue Landscaping: Computation of

Balance in Land Account:

i) on December 31, 2017:

Land = $150,000

Surveying costs = $2,400

Title Insurance = $3,840

Demolition cost = $3,360

Less Sale of Materials = $1,200

a) Balance in Land = $160,800

b) Balance in Building = $39,360 made up of:

Architectural Plans = $36,000

Building Permits = $3,360

c) Balance in Interest Expense = $5,030, calculated as follows:

$603,600 x 10% x 1/12 = $5,030

ii) on December 1, 2018:

a) Balance in Land = $160,800

b) Balance in Building:

Beginning Balance = $39,360

Contractor payments = $660,000 $( 262,800 + 333,600 + 63,600)

Total = $699,360

c) Interest Expense:

Beginning Balance = $5,030

2018 Interest = $60,360, calculated as follows: $603,600 x 10% x = $60,360

Total = $65,390

Explanation:

a) All the costs incurred necessarily in the acquisition of the land and to make it useable have to be included. Title Insurance is an insurance policy for past transactions and not for the future. It is therefore justifiable to include it like other incidental costs. The sales proceed from materials of the old building reduces the cost of the land.

b) Interest on Loan for December 31, 2017 was accrued for one month only. This is in line with the accruals concept of accounting. It was a finance cost used to create a capital asset that would generate future income. It is not capitalized but expensed in the period in which it was incurred.

8 0

4 years ago