The term "cash basis of accounting" refers to only recording revenue upon receipt of cash and expense upon payment of cash.
The term "cash basis" refers to a significant accounting technique that records revenues and expenses at the time that money is received or spent. Contrast this with accrual accounting, which regardless of when cash is received or paid, recognizes income at the time the revenue is earned and records expenses when liabilities are incurred.
By whom is cash basis accounting used?
Financial reporting can be done using either cash accounting or accrual accounting. Cash accounting is a method used by sole proprietorships, small firms, and individuals to keep track of their income and expenses whenever money is exchanged.
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<u>Product synergies</u> are represented by multiple filled boxed running vertically down the market-product grid, representing an opportunity for efficiency in research and development.
<u>Explanation:</u>
The concept of combining two or more entities to establish something greater than one single entity is synergy. Most often, synergy contributes to mergers and acquisitions which mean a positive gain the deal will bring. Brand synergy specifically refers to the combination of the technologies of the organizations which will likely result in more revenues than those produced individually by the companies alone.
Product synergies include the commercialization by a corporation of several goods. Marketing efforts would require more effort and cost in targeting a wider range of consumers. Nevertheless, marketing convergence focuses on one product and one consumer group.
Answer and Explanation:
a. The computation of the equity cost of capital is shown below:
As we know that
Expected rate of return = Risk free rate + Risk Premium × Beta
= 5.20% + 4.90% × 1.30
= 11.57%
b. Now the rate at which the dividend should be grow is
Value of the stock = Expected dividend ÷ (cost of equity - growth rate)
$38 = $2 ÷ (11.57% - growth rate)
so, the growth rate is 6.31%
This is an example that secondary-groups can lead to close personal ties of primary groups.
Not at all like first groups, secondary groups are large groups whose connections are unoriginal and objective situated. Individuals in a secondary group collaborate on a less close to home level than in an primary gathering, and their connections are for the most part impermanent as opposed to durable. But they can lead to the ties similar to the primary group as illustrated in this case.
Answer:
Commission is $200
Explanation:
Step 1: Calculate Sales Revenue
(50 * 12) + (80 * 5) = $1,000
Step 2: Calculate how many times she achieved $100 in sales
1,000 / 100 = 10
Step 3: Calculate Commission
20 * 10 = $200 in commission