Answer:
B. Debit Loss $5,000.
Explanation:
depreciation per year under straigh-line method:
depreciation per year: 20,000
book value at 2019 year-end:
140,000 - 20,000 x 2 = 100,000
disposal value: 95,000
loss for 5,000
loss at diposal: 5,000 debit
cash 95,000 debit
accumulated depreciation 40,000 debit
truck 140,000 credit
Answer: C
Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.
Explanation:
The term revenue recognition at the point of sale refers to the process of recording revenue from manufacturing and selling activities at the time of sale. The revenue recognition principle states a company can record revenue when two conditions are met. They must be realized or realizable, and earned.
Answer:
City Farm Insurance
a. City Farm cash management system has freed up $1,000,000 ($4,500,000 - $3,500,000).
b. City Farm can earn on short-term investments an amount equivalent to $21,900,00 {($1,500,000 x 365) x 4%}
Explanation:
A good cash management system combines accounting with financial management to produce financial visibility and provide business insights that can help the entity to increase its earnings with short-term investments. This is because it frees up investable cash. An entity can invest its excess cash in these instruments: money market funds, treasury bills, and certificates of deposit, offered by commercial banks.
Answer: 10%
Explanation:
You can use Excel to solve for this.
The investment will be in negative as shown below.
Input the increase in net annual cash flows 7 times to represent 7 years.
IRR = 9.9999%
= 10%
