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
Leni [432]
3 years ago
7

Fernblatt Inc. recognizes revenue in the period in which it records an asset for the related account receivable, rather than in

the period in which the account receivable is collected in cash. Fernblatt’s accounting approach is an example of____________.a. Matching.b. Cash basis accounting.c. Accrual accounting.d. Periodicity.
Business
1 answer:
Lena [83]3 years ago
6 0

Answer:

A

Explanation:

Matching principle of accounting says that revenue must be recorded as soon as it is generated, not on the basis of its collection.  Since income receivable is recorded as an income, therefore it must be recorded as long as it is earned not as it is collected.

Same is the case of expense as long as it is occurred, it should be recorded, not by payment is recorded.

You might be interested in
On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accum
Nataliya [291]

Answer:

On disposal, the carrying amount of the asset is derecognized by  

Debit Other income/disposal account (p/l)   $20,000

Credit Asset account     $20,000

Being entries to derecognize the cost of the delivery van

Debit Accumulated depreciation account  $18,000

Credit Other income/disposal account (p/l)   $18,000

Being entries to derecognize the accumulated depreciation of the asset at the date of disposal,

Furthermore,

Debit Cash account    $2,000

Credit Other income/disposal account (p/l)   $2,000

Being entries to record cash collected on  disposal of the asset

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal. The proceed from the disposal of an asset may be recorded in the disposal or other income account.

On disposal, the carrying amount of the asset is derecognized by  

Debit Other income/disposal account (p/l)

Credit Asset account  

with the cost of the asset, then,

Debit Accumulated depreciation account

Credit Other income/disposal account (p/l)

With the accumulated depreciation of the asset at the date of disposal,

Furthermore,

Debit Cash account

Credit Other income/disposal account (p/l)

with the amount received from the disposal or sale of the asset

4 0
3 years ago
An upcoming convention has secured 300 rooms at $140 per room for Friday night. The rack rate for Friday night is $250 per room
m_a_m_a [10]

Answer:

$67,000

Explanation:

The total revenue will be income from the 300 rooms and that from 100 rooms

=(300 x $140) + ($100 x 250)

=$42,000 +$25,000

=$67,000

6 0
3 years ago
Wynn, Inc. manufactures beanies. The budgeted units to be produced and sold are below: Expected Production Expected Sales August
lora16 [44]

Answer:

Hence, the budgeted cost of purchases is 12,474 yards

Explanation:

To compute the budgeted cost of purchase, we need to require to do calculations which are shown below:

1. First, we have to compute the purchase amount

= Required production in august + ending inventory - beginning inventory

where,

required production equals to

= expected production × number of yards

= 3,500 units × 18

= 63,000 yards

The ending inventory is 5% of next month production which equals to

= September expected production × number of yarns × rate

= 2,800 units × 18 yards × 5%

= 2,520 yards

And, the beginning inventory is 3,150 yards

Now put these values to the above formula

So, the purchase amount would be equal to

= 63,000 + 2,520 - 3,150

= 62,370 yards

And the cost of a yard is $0.20

So, the budgeted cost of purchase equals to

= Purchase amount × cost of yard

=  62,370 × $0.20

= 12,474 yards

Hence, the budgeted cost of purchases is 12,474 yards

7 0
3 years ago
What is the best speed limit for driving and why?
MArishka [77]
The best speed limit for driving is a constant speed of 40 because you can stop and easier
8 0
2 years ago
Why is it important for businesses to their heavy users?
Dovator [93]

Answer:

The Heavy users of a business are those people who comprise about 20% of the business's consumers and yet buy so much that they bring in about 80% of the business's revenue.

Heavy users also have an impact on light users because they can market the goods to light users whether indirectly or directly when they use so much of a business's goods and services.

It is therefore very important that the business knows of these heavy users so that they can focus marketing strategies on them as well as to offer them incentives that will keep them satisfied and coming back for more because if they don't act and they lose their heavy users, their revenues will see a significant drop.

8 0
3 years ago
Other questions:
  • Which of the following is an owner of a fee simple absolute NOT able to do...? Lease the property to another Pledge the property
    13·1 answer
  • The purpose of this assignment is the creation of a research analysis. every day, consumers make millions of decisions that impa
    10·1 answer
  • Kenneth Chenault, the CEO of American Express Co. hopes to issue American Express cards through U.S. banks. At present, banks th
    14·1 answer
  • The balance in accounts receivable at the beginning of 2016 was $600. During 2016, $3,200 of credit sales were recorded. If the
    5·1 answer
  • If investors sell their stocks and increase their money holdings due to a bad economy then is the demand or supply affected?
    5·1 answer
  • TravelEasy Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000. If the annual coupon rate is 14% and the
    12·1 answer
  • Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following u
    9·2 answers
  • 100 free hope you do the same
    11·1 answer
  • Your monthly paycheck after deductions is $4352.
    12·1 answer
  • Clover finance wants to increase the usefulness and accessibility of
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!