Answer:
FALSE
Explanation:
The revenue recognition principle state the firm will only reocgnize a revenu once the sercvice is performed. in this case the revenu should be recognize over time after each magazine is delivered or through adjusting entries at year-end or quarter-end. Never entirely as this represent an obligation to delivwer this magazines or return the money. It isn't revenue. It is a liability which becomes revenue over time.
Answer:
$178
Explanation:
Net Sales:
= Sales (January & February) of wizard and Spyder - Discount allowed to Wizard Inc
= ($100 + $80) - ($100 × 2%)
= $180 - $2
= $178
Gross Profit = Net Sales - Cost of goods sold
= $178 - ($70 + $60)
= $178 - $130
= $48
Therefore, total revenue Solitare would report over the two months is $ 178 with a gross profit of $48.
The formula is to calculate stock price through dividend discount model is
Share price = Dividend/(rate of return - dividend growth rate)
=$1.34/(5%-3%)
=$67
Answer:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Explanation:
A deferred tax asset occurs when taxes are either been overpaid or there's an advance payment for them. In this scenario, they're not yet acknowledged in the income statement.
Valuation allowance is a reserve used by a business to offset the deferred tax asset. The statements that are true about the valuation allowance are:
• Under U.S. GAAP, companies recognize deferred tax assets and then reduce those assets with an offsetting valuation allowance if its is not more likely than not that the asset will be realized.
• Under IFRS, deferred tax assets only are recognizefd to begin with if its is probable (defined as '' more likely than not'') that they will be realized.
Answer:
The correct option is B
Explanation:
Inflation is the measure which is quantitative in nature as the rate at which the average level of price of the selected goods and services in the economy rises over the year or time period.
It is stated or expressed in terms of percentage, because it indicates or explains the decrease or fall in the purchasing power of currency of the nation.
So, if the inflation is higher than what is expected, then the creditors who invested their money, will receive lower rate of interest then they anticipated as their is decrease of fall in the currency of the nation.
