Answer:
3 years after the right of return has expired
Explanation:
Generally accepted accounting principles (GAAPs) specify the scenario wherein revenue is to be recognized.
As per the accrual principle, revenue is to be recognized when earned and not when actual cash is received against it.
In the given case, the company allows it's customers to return the products sold within a period of three years. Hereby, the company must make a provision for contingency against future returns.
Here, the business should be able to estimate the number of vacuums that would be returned. Here, the company is unable to do so owing to no past record or history.
Hence, the company may have to wait till maximum period of 3 years i.e the time when products can no longer be returned, for recognizing revenue associated with the sales.
Answer:
-2.33
Explanation:
The computation of the price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of quantity demanded)
where,
Change in quantity demanded would be
= Q2 - Q1
= 5,000 - 2,500
= 2,500
And, average of quantity demanded would be
= (5,000 + 2,500) ÷ 2
= 3,750
Change in price would be
= P2 - P1
= $0.45 - $0.60
= -$0.15
And, average of price would be
= ($0.45 + $0.60) ÷ 2
= 0.525
So, after solving this, the price is -2.33
The purpose of the statement of stockholder’s equity is to show changes in value of stockholders' equity.
The statement of stockholders' equity refers to the financial reports that form part of the balance sheet of a firm. It contains essential information about the trends in its shares and equities.
This allows stakeholders and investors to understand how stockholders' valuation of the firm has changed through the years, and how much the firm has promoted the interests of stockholders.
If the business has afforded high returns to investors, the stockholders' equity statement shows increase in value. If there is a decrease, it means shareholders are losing their investments and the firm has to recalibrate its business strategy.
To learn more about stockholders' equity : brainly.com/question/13278063
#SPJ4
Answer:
The own price elasticity is 0.28.
The demand for good a is inelastic.
Explanation:
The price elasticity of demand for a product is the change in the quantity demanded of a product due to a change in its price.
When the price of good A increases by 7% the quantity demanded of that product decreases by 2%.
The own price elasticity of demand
= 
= 
= 0.28
The elasticity of demand is less than 1, this implies that demand is inelastic.
A greater change in price is leading to a smaller change in quantity demanded.
Answer:
$100,000
Explanation:
Data provided in the question:
General aggregate limit of CGL policy = $300,000
Per-occurrence limit = $100,000
Now,
For the first claim for a $200,000 loss the maximum amount paid will be the Per-occurrence limit i.e $100,000
Subsequently for a second claim for a $100,000 loss the amount paid will be minimum of the Per-occurrence limit or the loss amount claimed i.e $100,000
Therefore,
Total amount of claim provided by the insurer till second claim
= $100,000 + $100,000
= $200,000
Thus,
Amount remaining
= General aggregate limit of CGL policy - Total amount of claim provided by the insurer till second claim
= $300,000 - $200,000
= $100,000
