Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
REVENUE RECOGNITION
Mary Wade owns a small business that rents parking spaces to students at the local uni- versity. Mary's typical rental contract requires the student to pay the year's rent of $720 ($60 per month) in advance. When Mary prepares financial statements at the end of December, her accountant requires that Mary spread the $720 over the 12 months that a parking space is rented. Therefore, Mary can recognize only $240 revenue (four months) from each contract in the year the cash is collected and must defer recognition of the remaining $480 (eight months) to next year. Mary argues that getting students to agree to rent the parking space is the most difficult part of the activity so she ought to be able to recognize all $720 as revenue when the cash is received from a student.
Required:
Explain why you believe that generally accepted accounting principles require the use of accrual accounting rather than cash-basis accounting for transactions like the one described here.
the decision was made to use a process costing system. the first month of operation went fairly smoothly and the cfo is
Develop an auditor report attesting to management's assertions regarding the effectiveness of internal controls and recognize situations that present potential ethical and legal issues and develop solutions for those issues.
Prepare journal entries to record the preceding information using the gross price method
Determine the net cash flows from investing activities and the net cash flows from financing activities
Ethical Issues Surrounding Activity-Based Costing and What ethical issues do you see in this scenario? How would you resolve them?
Determine the missing amounts, identifying them by letter - Missing amounts from balance sheet and income statement data
Provide at least 2 examples of internal control procedures, and explain how these procedures can be implemented.
What is the after-tax cost of debt capital if the effective tax rate is 42%? (b) How are the interest rate and cost of debt capital used to calculate WACC?
Explain the circumstances when, and the amount at which, borrowing costs should be capitalized in accordance with IAS 23 - Prepare extracts from the statement of profit or loss and statement of financial position for the above machine for each of th..
Emil Corporation has an opportunity to buy parts at $9 each that currently cost $12 to make. What manufacturing costs are relevant to this make-or-buy decision?
on 31st december 2011 rollo company held the subsequent short-term investments in its portfolio of available-for-sale
Explain and illustrate the difference between standard cost and standard costing and using the above data draw up a standard cost card under marginal and absorption costing.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd