Answer:
A. It is a valuation method.
Explanation:
The matching principle is used to assign same costs with the same revenues. For example the inventory bought to make the product would be assigned like wise to assure the guideline of matching principle.
It is a valuation method.
It is used to evaluate the accounting procedures.
For example let us assume that we are selling candies. But the advertisement is run once the candies have been manufactured and sealed. So the matching principle states that the advertisement expenses to be included in the income statement having the corresponding stock of candies manufactured and sold.
Answer:
A. Dr Cash $705,120
Cr Unearned subscription revenue
B. Dr Unearned subscription revenue $58,760
($705,120 *1/12)
Cr Subscription revenue $58,760
Explanation:
a) Preparation of the entry in November for the receipt of the subscriptions
Dr Cash $705,120
(27,120*$26)
Cr Unearned subscription revenue $705,120
(To record the receipt of the subscriptions)
b) Preparation of the adjusting entry at December 31, 2015, to record sales revenue recognized in December 2015
Dr Unearned subscription revenue $58,760
($705,120 *1/12)
Cr Subscription revenue $58,760
(To record sales revenue recognized)
Answer:
d) 57.5% men, 82.5% women, 70% total customers
Explanation:
To find out the percentage of men who rated the service as excellent, just divide the number of men who rated the service as excellent (115) by the total number of men (200) and multiply the result by 100.
(115/200) * 100 = 57.5%. Therefore, 57.5% of men rated the service as excellent.
Similarly, to find out the percentage of women who rated the service as excellent, just divide the number of women who rated the service as excellent (165) by the total number of men (200) and multiply the result by 100.
(165/200) * 100 = 82.5%. Therefore, 82.5% of men rated the service as excellent.
Finally, to find the total of people who rated the service as excellent, you must add the number of men and women who rated the service as excellent (115 + 165) and divide by the total number of man and women (400) and multiply by 100.
115+ 165 = 280
(280/400) * 100 = 70%
Therefore, 70% of people rated the service as excellent.
Answer:
Net Present Value: 1,661,452,09
Explanation:
The net present value is the presetn value of the revenues less the cost from the company:
revenue: 435,000
interest expense:
250,000 x .073 = <u> (18,250) </u>
net income: 416,750
<u>after tax:</u> 416,750 x (1 - 21%) = 329,232.5
<u>present value</u> of the project (per perpetuity)
329,252.5 / 0.167 = 1,971,452.09
less the cash cost: (310,000)
Net Present Value: 1,661,452,09