Can you answer that for me and explain why?
Homework Answers
Answer:- D. Revenue is recognised in the period services have been performed.
Explanation:-
Principle used in revenue recognition is accrual basis of accounting. Which requires that revenues are recognized in the period when they are realized and earned (i.e, goods are sold or services are performed), not when cash is received. The reason is to match the revenues and expenses both in the correct accounting period, through Income Statement.
However in cash basis of accounting revenue is recognised when the cash is received.
Please give a Thumbs up ?. Thanks!!
Add Answer to:
Can you answer that for me and explain why?
17. A. The principal of revenue recognition...
Can you answer that for me and explain why? 14. Adjusting Entries are required: When expenses...
Can you answer that for me and explain why?
14. Adjusting Entries are required: When expenses are paid for in a different period than when the cost is incurred to generate revenue. At the end of the accounting period to adjust to the accrual basis of accounting. | When a cost occurs with the passage of time and it has yet to be recorded in the period. The end of the reporting period to comply with GAAP. All the choices...
Can you answer that for me and explain why? 12. A company earns $40,000 by providing...
Can you answer that for me and explain why?
12. A company earns $40,000 by providing services in the current period for cash that was received in a prior period. In posting this transaction to the T-accounts, which of the following will be required? | Post $40,000 on the left side of the Cash T-account. Post $40,000 on the left side of the Deferred Revenue T-account. Post $40,000 on the right side of the Deferred Revenue T-account. Post $40,000 on...
Can you answer that for me and explain why? A corporation received a $5,000 cash dividend...
Can you answer that for me and explain why?
A corporation received a $5,000 cash dividend from stock held in an unrelated company. How would this transaction be recorded and what type of business activity would this be classified under? Debit dividend receivable $5,000, credit Dividend Revenue $5,000; Financing. Debit Cash $5,000, credit Dividend Revenue $5,000; Financing. Debit Cash $5,000, credit Dividend Revenue $5,000; Investing. Debit Cash $5,000, credit Dividend Revenue $5,000; Operating. None of the choices are correct.
can you give me the answer and explain why?also can you explain why A is incorrect....
can you give me the answer and explain why?also can you explain
why A is incorrect. thx
24. A Company recorded the following cash transactions for the year: Paid $90,000 for salaries. Paid $40,000 to purchase office equipment. Paid $10,000 for utilities. Paid $4,000 in dividends. Collected $140,000 from customers. Recorded $3,000 in depreciation expense. What was the net cash provided by operating activities? $37,000. $0. ($3,000). $50,000. None of the choices are correct.
can you give me the answer and explain why?also can you explain why A is incorrect....
can you give me the answer and explain why?also can you explain
why A is incorrect. thx
27. What statement(s) is/are correct concerning the Income Statement? The net income reported on the Income Statement usually equals the same net amount of operating cash flow for the period if the company uses the accrual basis of accounting The Income Statement must be prepared first in order to include the net income for the period when updating the retained earnings account at...
can you give me the answer and explain why?also can you explain why C is incorrect....
can you give me the answer and explain why?also can you explain
why C is incorrect. thx
26. | A corporation purchases land for $200,000 by paying a down payment of $20,000 and by signing a note payable for the remainder of the purchase price. Which of the following statements correctly shows the effect of this transaction on the accounting equation? Assets will increase by $200,000; liabilities will increase by $180,000 and stockholders' equity will increase by $20,000. Assets will...
1. Under the general rule of revenue recognition, revenue is recognized when a marketability and market...
1. Under the general rule of revenue recognition, revenue is recognized when a marketability and market price are assured. b. a contractual agreement exists, and cash collection is assured. C./ all related expenses have been incurred. the earnings process is complete, and a valid promise of payment has been received 2. Which of the following is NOT an acceptable basis for the recognition of expenses? Cal Direct matching 6. Cash disbursement C. Immediate recognition d. Systematic and rational allocation 3....
Revenue Recognition For each of the following transactions, events, or circumstances, indicate whether the recognition criteria for revenues and gains are met and provide support for your answer. (a)...
Revenue Recognition For each of the following transactions, events, or circumstances, indicate whether the recognition criteria for revenues and gains are met and provide support for your answer. (a) An order of $25,000 for merchandise is received from a customer. (b) The value of timberlands increases by $40,000 for the year due to normal growth. (c) Accounting services are rendered to a client on account. (d) A 1991 investment was made in land at a cost of $80,000. The land...
1. Revenue recognition – accrual basis vs. cash basis: Ring The Bells, Inc. provides doorbell repair...
1. Revenue recognition – accrual basis vs. cash basis: Ring The Bells, Inc. provides doorbell repair services to customers. The accountant for Ring The Bells noted the following events which took place during April, 2018: • On April 4th, Ring the Bells received $725 in cash from customers for services that had been provided in March, 2018 on account. • On April 11th, provided $280 worth of services to customers on account. Cash payment for these services will not be...
can you give me the answer and explain why?also can you explain why B is incorrect....
can you give me the answer and explain why?also can you explain
why B is incorrect. thx
21. Which of the following is an attribute of the corporate form of business ownership? Unlimited liability. Higher tax rates. Limited resources. Difficulty in transferring ownership. None of the choices are correct.
Can you answer that for me and explain why?
14. Adjusting Entries are required: When expenses are paid for in a different period than when the cost is incurred to generate revenue. At the end of the accounting period to adjust to the accrual basis of accounting. | When a cost occurs with the passage of time and it has yet to be recorded in the period. The end of the reporting period to comply with GAAP. All the choices...
Can you answer that for me and explain why?
12. A company earns $40,000 by providing services in the current period for cash that was received in a prior period. In posting this transaction to the T-accounts, which of the following will be required? | Post $40,000 on the left side of the Cash T-account. Post $40,000 on the left side of the Deferred Revenue T-account. Post $40,000 on the right side of the Deferred Revenue T-account. Post $40,000 on...
Can you answer that for me and explain why?
A corporation received a $5,000 cash dividend from stock held in an unrelated company. How would this transaction be recorded and what type of business activity would this be classified under? Debit dividend receivable $5,000, credit Dividend Revenue $5,000; Financing. Debit Cash $5,000, credit Dividend Revenue $5,000; Financing. Debit Cash $5,000, credit Dividend Revenue $5,000; Investing. Debit Cash $5,000, credit Dividend Revenue $5,000; Operating. None of the choices are correct.
can you give me the answer and explain why?also can you explain
why A is incorrect. thx
24. A Company recorded the following cash transactions for the year: Paid $90,000 for salaries. Paid $40,000 to purchase office equipment. Paid $10,000 for utilities. Paid $4,000 in dividends. Collected $140,000 from customers. Recorded $3,000 in depreciation expense. What was the net cash provided by operating activities? $37,000. $0. ($3,000). $50,000. None of the choices are correct.
can you give me the answer and explain why?also can you explain
why A is incorrect. thx
27. What statement(s) is/are correct concerning the Income Statement? The net income reported on the Income Statement usually equals the same net amount of operating cash flow for the period if the company uses the accrual basis of accounting The Income Statement must be prepared first in order to include the net income for the period when updating the retained earnings account at...
can you give me the answer and explain why?also can you explain
why C is incorrect. thx
26. | A corporation purchases land for $200,000 by paying a down payment of $20,000 and by signing a note payable for the remainder of the purchase price. Which of the following statements correctly shows the effect of this transaction on the accounting equation? Assets will increase by $200,000; liabilities will increase by $180,000 and stockholders' equity will increase by $20,000. Assets will...
1. Under the general rule of revenue recognition, revenue is recognized when a marketability and market price are assured. b. a contractual agreement exists, and cash collection is assured. C./ all related expenses have been incurred. the earnings process is complete, and a valid promise of payment has been received 2. Which of the following is NOT an acceptable basis for the recognition of expenses? Cal Direct matching 6. Cash disbursement C. Immediate recognition d. Systematic and rational allocation 3....
can you give me the answer and explain why?also can you explain
why B is incorrect. thx
21. Which of the following is an attribute of the corporate form of business ownership? Unlimited liability. Higher tax rates. Limited resources. Difficulty in transferring ownership. None of the choices are correct.
Most questions answered within 3 hours.
-
what process occurs to form microspores and megaspores in flowering
plants?
asked 10 seconds ago -
C++
I need to use the function getData to put in all my data using
arrays....
asked 35 seconds from now -
A block is hung by a string from the inside roof of a van. When
the...
asked 6 minutes ago -
Do you think companies should not go for long term debt in their
capital structure to...
asked 15 minutes ago -
I create an address book where the user enters the name, phone
and email in the...
asked 20 minutes ago -
The production capacity for acrylonitrile
(C3H3N) in the United States exceeds 2
million pounds per year....
asked 28 minutes ago -
explain and comment out your answer
43. How many address lines are required to address a...
asked 35 minutes ago -
A sample of 45 observations is selected from a normal
population. The sample mean is 49,...
asked 49 minutes ago -
A construction company is planning to bid on a building
contract. The bid costs the company...
asked 47 minutes ago -
A firm operating in a purely competitive environment is faced
with a market price of $250....
asked 53 minutes ago -
•Let’s say someone claims the average population size is
600 feet squared and the housing authority...
asked 1 hour ago -
Cynaide is a deadly poison that blocks the last step in the
electron transport chain of...
asked 1 hour ago