Answer: $129,500
Explanation:
According to the Accrual Basis in Accounting, revenue and expenses should only be recognised when goods have been delivered.
On the December 31, 2020 Sandra's Boutique had 1,850 gift certificates outstanding but these had been sold already to people during the year for $70.
This means that they have been paid for a service that they have not given (they provide the service when the GIFT certificate is renewed).
They cannot therefore recognize the revenue as Revenue yet and have to defer it.
The amount to be Deferred will therefore be,
= 1,850 * $70
= $129,500
An activity-based costing system is uses numerous overhead cost pools. Thus, the last option is correct.
<h3>What is Activity based costing?</h3>
Activity based costing is the technique which is used to calculate the cost based on the activity. It is the prediction of the cost, in which overhead cost and indirect cost are assigned.
This approach allocates fixed and variable expenses, as well as overhead and indirect costs, to relevant goods and services, allowing a business to determine the true cost of a product, service, or activity.
Therefore, it can be concluded that the last option is correct.
Learn more about Activity based costing here:
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Answer:
Option (d) is correct.
Explanation:
The opportunity cost refers to the cost of selecting some other alternative over other. It is the value of activity or the satisfaction obtained from the good foregone to choose other alternative.
In our case, if Hal decided to go to college then he have to left his job where he earned some money income.
Therefore, the opportunity cost of attending college is the money income that Hal lose as he could have earned that income.
Marian received an extra principal payment on the loan her business made to another company. What activity is what is called investing activity.
<h3>What is meant by investing activity?</h3>
This is the term that has to do with all of the activities that a person would engage in that would be able to bring in an increase in cash.
This is an investment activity because we can see that she was the one that gave the loan, hence she would be receiving more money for the loan when it is paid back to her.
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