Answer: O the liability Unearned Revenue on its balance sheet.
Explanation:
Unearned Revenue is a liability that goes into the balance sheet to record the cash received for goods and/or services that the company have not delivered yet.
This is so that the company is not in violation of the Accrual Accounting concept known as the Revenue Recognition Principle that states that revenue should be recognised only in the period that they have been earned.
Microsoft in this scenario will record this cash as an Unearned Revenue and then consider it revenue when it has delivered the said goods and services.
These are known as supply chain planning systems, because they help organize and make sense of the various steps in the supply chain.
Answer:
Explanation:
Net Cost of Life Insurance Premium : Life insurance policy entails Premium to be paid by the insured at a monthly / quarterly interval. insured often gets dividend from the insurance company and in that case, the net cost of premium will be low
The 20 years premium can be calculated with Annual Premium which is not given in the question, therefore i will solve for all the option but please pick the answer that the Annual premium is with you
a) 20 years premium = Annual Premium x Number of years
= 11700 x 20
= 234,000
b) 20 years premium = Annual Premium x Number of years
= 7900 x 20
= 158,000
c) 20 years premium = Annual Premium x Number of years
= 550 x 20
= 11,000
d) 20 years premium = Annual Premium x Number of years
= 28350 x 20
= 567,000
Answer:
Annual depreciation= $73,551.72
Explanation:
Giving the following information:
A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. The residual value is expected to be zero. The truck is driven 27,000 miles during the first year.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= (316,000/116,000)*27,000= $73,551.72
