1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nexus9112 [7]
3 years ago
5

Ivory Fast Delivery Company, an accrual basis taxpayer, frequently has claims for damages to property the company delivered. Oft

en the claim is not filed until a month after the delivery. In the past, approximately 80% of the claims are paid by Ivory. In 2017, claims for $80,000 were filed. The company refused to pay $20,000 of the claims (because they were not valid), and paid $50,000 . The
remaining $10,000 in claims were processed and paid in January 2018 . Also, in January 2018, claims for $8,000 were filed for deliveries made in 2017, and $6,000 was paid on these claims by March 15, 2018 . Ivory has not elected to use the recurring item exception to economic performance. Under the all-events and economic performance tests, Ivory can accrue as an expense for 2017:
a. $68,000.
b. $66,000.
c. $60,000.
d. $50,000.
e. None of the above.
Business
1 answer:
Virty [35]3 years ago
4 0

Answer:

D) $50,000.

Explanation:

Economic performance requires that the company provided services or products to another party (i.e. a customer).

The all-events test states that all the events that caused the liability actually occurred during the accounting period and that occurrence can be accurately established. During 2017, the company could only accurately establish that $50,000 of the claims were real.

You might be interested in
when it comes to distribution, what is the least expensive route when getting the product from manufacturer or farmer to the ult
jonny [76]
<h2>The least expensive route is to use "Direct distribution Channel"</h2>

Explanation:

There are two modes where a manufacturer or farmer can reach the product to the customer.

1. Direct channel: This enables the customer to directly buy from the manufacturers.

Example: Online purchase. In this the customer has direct access to the product and orders online. The manufacture has to find a source to deliver the goods to the customer.

Manufacturer should have warehouses, shipping centers, etc to deliver the product.

2. Indirect channel: Relies mainly on intermediaries to perform product distribution to the customers. This includes dealer, sub-dealer and many other to reach the product to the customer.

7 0
3 years ago
The contribution margin approach helps managers in short-term decision making because it ________
lana66690 [7]
The contribution margin approach helps managers in short-tern decision making because it reports costs and revenues at their current value. 

The contribution margin ratio/approach allows companies to determine their profits they can make from a product minus variable costs. 
5 0
3 years ago
Read 2 more answers
The auditor of a public company is assessing the value of all the intangible assets owned by the company. Which of the following
liq [111]

Answer:

B. The company's brand equity

Explanation:

Intangible assets lack a physical presence. They are assets that cannot be touched or seen. Intangible assets are contrasted by tangible assets, which include land, buildings, vehicles, plants, and machinery.  Examples of intangible assets include patent brand names, trademarks, or and copyright.

Intangible assets have a use-life of more than one year. They can be created or acquired, just like tangible assets. From the list in the case, The company's cash reserves, company's plant and equipment, and company headquarters are tangible assets because they have a physical presence.

6 0
3 years ago
describe the efforts that local governments should make to increase local revenue from the tax sector!
Talja [164]

Answer:

I need help too, I'm about to fail this

5 0
3 years ago
A ________________ is linked to the organization’s hierarchy, with some shift of power to team; the leader has limited manageria
Dafna1 [17]

A team is linked to the organization's hierarchy,

with some shift of power to team; the leader has limited managerial power;

decision-making is consultative, democratic, or by consensus

8 0
3 years ago
Other questions:
  • For seven years, Bonnie Patterson has been a manager at Wayne and Watson, a legal consultancy firm. A good part of her workday i
    13·1 answer
  • Selling with criminal negligence alcoholic beverage to a minor is a
    11·2 answers
  • The Appleton entity established a $200 Petty Cash fund on June 1, 200X. On June 30, 200X the fund had $45 in cash and the follow
    5·1 answer
  • The market value of the equity of Hudgins, Inc., is $645,000. The balance sheet shows $53,000 in cash and $215,000 in debt, whil
    13·2 answers
  • What type of economy is often found in democracy A. Command Economy B. Traditional Economy C. Market Economy D. Restricted Econo
    5·2 answers
  • For what type of financial aid can you apply through the FAFSA?
    7·2 answers
  • Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The c
    9·2 answers
  • A company uses the periodic inventory method. If beginning inventory is understated by $10,000 because the prior’s year’s ending
    13·1 answer
  • On june 15, 2018, sanderson construction entered into a long-term construction contract to build a baseball stadium in washingto
    11·1 answer
  • What is the world's largest free trade area?
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!