Business, 15.02.2021 18:10 sierram298
In its first year of operations, Sunland Company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. The remaining $21,900 was received in cash from customers. The company incurred operating expenses of $18,600. Of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. In addition, Sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. A) Calculate the first year’s net earnings under the cash basis of accounting, and accrual basis of accounting. Cash Basis Accrual BasisNet Income $ $B) Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answers: 3
Business, 22.06.2019 10:30
Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?
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Business, 22.06.2019 19:30
Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above
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Business, 22.06.2019 21:00
Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations.
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Business, 23.06.2019 02:00
Donna and gary are involved in an automobile accident. gary initiates a lawsuit against donna by filing a complaint. if donna files a motion to dismiss, she is asserting that
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In its first year of operations, Sunland Company recognized $30,000 in service revenue, $8,100 of wh...
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