The statements about commercial banks that are true include:
commercial banks are equally responsible to their depositors and borrowers. commercial banks make loans from the deposits of its customers. What is a commercial bank?A commercial bank is a financial enterprise that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These establishments make money by lending loans to individuals and earning interest on loans.
Therefore, the correct answer is as given above
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If you were putting together a team or committee to develop an operational plan at your business, who would be on that team?Why would you choose those people?What skills and knowledge does each person bring to the team?
Operational planning is a procedure that includes developing plans or policies, obtaining and allocating resources, establishing benchmarks, carrying out projects, and monitoring advancement.
Sometimes operations research, O.R., or operational planning are used interchangeably. The objective is to clearly lay out how your group or organization will accomplish its strategic objectives within a given time frame.
To reduce the risk of having too much information converge, operational planning is typically handled by mid-level managers. Monthly action items should be spaced out between the quarterly milestones that operational planning should be divided into. Saving time is the main advantage. If you have a plan, the team shouldn't have to waste time or resources trying to decide what to prioritize or redo tasks.
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at december 31, amy jo's appliances had account balances in accounts receivable of $350,000 and in allowance for uncollectible accounts of $1,300 (debit) before any adjustments. an analysis of amy jo's december 31 accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. bad debt expense for the year should be:
According to an examination of Amy Jo's 31 december accounts receivable, the stipend for doubtful debts should be 2% of receivable accounts. The annual bad debt expense should be $7,190.
What Exactly Is a Debt Expense?
When a credit is no longer collector's items since a consumer fails to fulfill their responsibility to pay a remaining loans because of bankruptcy or even other financial problems, a bad loans expense is recognized.
How do you locate debt expenses?
The current year's bad debt expense is calculated by dividing the bad debt proportion by the predicted credit sales. Current year bad debt expense = bad debt proportion X Credit sales projections.
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What are the characteristics of a command socialist economy?
A command economy is like a tree, and socialism and communism are its two distinct branches. Socialism or communism are two examples of command economies. In all three, the government controls the enterprises, resources, and overall national economy.
While free-market economies have historically been tied to capitalism and democratic countries, command economies have generally been associated with socialist and communist countries.
Actually, an economy cannot be fully managed by either a government or a free market. A socialist political and economic system is one in which the state or the government has control over property ownership and the means of production, generally speaking.
Socialism, that has predicated on the notion that more egalitarian society results from collective or public ownership of resources and manufacturing equipment. In a socialist economic system, the government either entirely or partially regulates the production of commodities and services. The new economic system is referred to as a planned economy and this is known as central planning.
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Challenge Problem: Completing a work sheet 01,2,3,4,5,6 Sales ProSource Company had a small fire in its office. The fire destroyed some of the accounting records. On November 30 of the current year, the end of a monthly fiscal period, the following information was constructed from the remaining records and other sources. A work sheet is given in the Working Papers. Remains of the general ledger: Account Titles Account Balances Accounts Receivable--C. Grumpa $1,650.00 Supplies 1,400.00 Donna Beggin, Drawing 600.00 7,600.00 Advertising Expense 400.00 Rent Expense 1,200.00 Utilities Expense 780.00 Information from the business's checkbook: Cash balance on last unused check stub $6,238.00 Total payments for miscellaneous expense 100.00 Total payments for insurance 800.00 Information obtained through inquiries to other businesses: Owed to Century Supplies $3,000.00 500.00 Value of prepaid insurance, November 30 Information obtained by counting supplies on hand after the fire: Supplies on hand $400.00 Instructions: 1. From the information given, prepare a heading and reconstruct a trial balance on a work sheet. The owner's capital account balance is the difference between the total of all debit account balances minus the total of all credit account balances 2. Complete the work sheet. Chapter 6 185 Work Sheet and Adjusting Entries for a Service Business
The total adjusted trial balance of ProSource Company for November 30 is $11,380 and its working capital is $292.
The complete adjusted trial balance is attached below
To construct the trial balance for ProSource, we have to idenfity the unadjusted balance for each accounts and defines wheter it is recorded as debit or credit.
For the unadjusted balance, we have informations:
Debit accounts:
Account receivable = $1,650
Supplies = $1,400
Drawing = $600
Advertising expense = $400
Rent expense = $1,200
Credit accounts:
Long-term debt = $780
Revenues (Sales) = $7,600
From the additional informations, we have some adjusting entries:
Debit accounts:
Cash = $6,238
Supplies = $(1,000)
Prepaid insurance = $500
Misc. Expense = $100
Credit Accounts:
Account payables = $300
Please notice that the total supplies on hand after the fire is $400, hence the supplies loss $1,000 should be recorded as the adjusting entries.
Based on the adjusted balance for each account, we have:
Debit accounts:
Cash = $6,238
Account receivables = $1,650
Supplies = $400
Drawing = $600
Advertising expense = $400
Rent expense = $1,200
Misc. expense = $100
Total debit = $11,088
Credit accounts:
Account payables = $300
Long-term debt = $780
Revenues (Sales) = $7,600
Total credit = 11,380
If we sum up all the debit and credit accounts, we will find that the total debit is unbalanced with the total credit. However, remember that the owner's capital account balance refers to the total of all debit account balances minus the total of all credit account balances.
Hence we could use the equity account to record the owner's capital.
Equity = Total debit accounts - Total credit accounts
Equity = $11,088 - $11,380
Equity = $292 --> in debit
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Amazon and Orbitz are both part of _______ marketing channels
A strategic alliance of channels implies.The marketing channel of a company is used as the marketing channel for commercial products/services.
There are 2 types direct marketing producer-consumer,and indirect producer-intermediary-consumer.Indirect Marketing Channels Channels with one or more intermediaries.Channel members bridge the time, place, and possession gaps that exist between producer and consumer.Create time,place,form,and ownership utility for shoppers Amazon.com Direct Marketing Channels.A marketing channel is a business structure of organizations that extend from the point of production to the consumer.Intermediaries negotiate with each other, buy and sell products, and facilitate the change of ownership between the buyer and the seller.
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a 30-year maturity mortgage-backed bond is issued. the bond has a par value of $1,000 and promises to pay a 9 percent coupon, on a semi-annual basis. at the issue date, bond market investors require a 8.1 percent interest rate (yield to maturity) on the bond. what is the initial price on the bond (rounded to $1)? ch19 a. $1,101 b. $941 c. $1,029 d. $1,000,000 e. $1,043
The initial price on the bond is 0ption (e). $1043.
What is Mortgage Loan?The price at which any Stock of any class are initially made available for purchase or subscription is referred to as the initial price. One of those concepts that is thankfully simple to comprehend is mortgage maturity. It simply means the day your mortgage debt is expected to be fully repaid.
Regular interest payments to investors stop after the loan arrangement matures since it is no longer in effect.
Face value = 1000
Coupon = 9/2%*1000
= 45
YTM = 8.6%/2
= 4.3%
Time = 30*2
= 60 periods
Use financial calculator,
FV = 1000
PMT = 45
1/y = 4.3
N = 60
CPT Pv -> 1042.79
Initial price = $1042.79
= 1043
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When planning your career future, one of the first things you can do is
A. Develop and action plan
B. Work toward your goals
C. Take a career assessment or interest inventory
D. Go on a job interview
Answer:
work toward your goal
Explanation:
i believe when you know what you want to become in life if you are in school ensure that you as the student work to keep your grade up to keep good grades to aid in the application of universities and colleges and also to get subjects after 5 years of schooling
What happens when money supply increases?
Interest rates are typically lowered when there is an increase in the money supply. This leads to more investment and more money in the hands of consumers, which in turn encourages spending.
As a result, more raw materials are ordered and production is increased.
Does an expansion in cash supply cause expansion?When an economy's money supply grows faster than the economy's capacity to produce goods and services, this is known as inflation.
When the money supply grows, what happens to the price level?The price level changes as a result of the same change in the money supply (M) that occurs when output (Y) is increased but the money supply (M) is increased. To put it another way, output does not change, but the price level also rises when the money supply doubles.
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A _____ is the statistic which gives the number of people who respond to a direct mailer.
Return on investment
Response rate
Mailing list
Will Fed decrease interest rates?
Most economists say the Fed will likely stop raising interest rates at some point in 2023, but “where” rates peak — a level known as the “terminal” rate — is actually more important than “when.”
What would occur if the Fed raised interest rates?The amount that commercial banks charge one another for short-term loans is influenced by this important interest rate. Because borrowing costs increase with a rising fed funds rate, banks and other financial institutions may be less eager to borrow money.
Is another rate decrease by the Fed anticipated?
However, the Fed won't likely begin lowering interest rates until 2024 at the earliest, so it could be too late for the institution to avert a downturn. The co-chief investment officer of Truist Advisory Services, Keith Lerner, remarked that "a pivot or pause is not a cure-all for this market."
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What are 3 ways of reducing the taxes you pay?
Contributing to a retirement account through an employer-sponsored plan or an individual retirement account is a useful way to lower taxable income (IRA).
How to Reduce Taxable Income: Can the Average American Pay No Taxes?The vast majority of individuals never get used to having so much federal income tax deducted from each paycheck. The IRS withholds an increasing percentage of your income.I frequently get asked if it is possible to lower your taxable income such that you owe no taxes in my capacity as Personal Capital's senior tax specialist.Even if you have a somewhat large salary, careful tax preparation could dramatically lower your tax burden to nearly nothing. As shown here.Your financial and investment goals can be met with the assistance of Personal Capital's team of committed advisors. To make a consultation session with an advisor, register for our free financial tools.To Learn more About lower taxable income refer to:
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Is incentive a disadvantage?
According to the given statement is It can gradually foster an attitude of entitlement, which will diminish motivation and performance.
What exactly are an advantage and a disadvantage?An advantage is any occurrence, opportunity, or strategy that is particularly favorable to achievement or any desired purpose, whereas a downside is a fault or unpleasant trait; a scam.
Can a drawback turn into a benefit?Disadvantage (physically, mental, etc psychological) is a benefit rather than a liability. It presents an opportunity for growth and development in your life that is profoundly significant. Consider how I changed careers from opera singer to clinical psychologist.
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What does the idealist believe is the basis of the existence of all things?
The term "idealists" in philosophy refers to metaphysical viewpoints that contend that perception and understanding are inseparable from reality and that reality is a mental construction closely related to ideas.
There are two types of idealist perspectives: subjective idealism, which contends that a material object exists only to the extent that a human being perceives it, and objective idealism, which contends that there is an objective consciousness that predates and exists independently of human consciousness, thereby establishing the object's existence as independent of human perception. According to the philosopher George Berkeley, one must perceive an object's essence. However, idealism "does not concern the existence of objects," according to Immanuel Kant Subjective idealists, commonly referred to as immaterialism, is a theory of experience and the world in which things are nothing more than bundles or groupings of sense data in the perceiver.
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What happens when the price of an elastic good decreases?
When price of an elastic good decreases, the quantity demanded of that good increases more than the change in the price of the good.
In case of elastic demand, the change in quantity demanded is more than the change in the price of the good. This happens when the good has many substitutes or it is a luxury item. A decrease in the price results in greater than proportionate increase in the quantity demanded of the good and vice-versa. For example, if price of coffee falls then more consumers will start demanding coffee instead of tea, therefore, change in quantity demanded will be more.
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Effective leaders can avoid conflict in their groups or organizations.True OR False
The statement is False. Effective leaders do not avoid conflict in their groups or organizations.
Effective leader keep away from no kind of conflict except for they utilize an obliging methodology on the off chance that it isn't vital to them however it very well may be significant for the other party. In the obliging procedure where there are low self-assuredness and high collaboration and it happens when the one-party act in a totally unselfish manner.
Leadership is a art when a man or a lady takes a gathering to a particular objective coordinately by the best utilization of the abilities, ability, and techniques of the individuals from the group.
Great pioneers share a degree of splendor that empowers them to move the majority toward groundbreaking thoughts and developments. Models incorporate Mahatma Gandhi, Oprah Winfrey, and Martin Luther Lord Jr. Finding out about uncommon pioneers is advantageous in light of the fact that it permits you to learn positive characteristics and ways of behaving to imitate.
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A characteristic of a sound sales force expense plan is that it:
A. Is designed so that the reps neither profit nor lose under the plan.
B. Does not hamper the performance of selling activities.
C. Is simple and economical to administer.
D. Does All of these.
E. Accomplishes only two of A-B-C.
A characteristic of a sound sales force expense plan is that it Does All of these.
According to physics, sound is essentially a vibration that moves through a solid, liquid, or gas transmission medium, such as a sound wave. These waves are received as sound, and the brain interprets them as sound from a physiological and psychological standpoint.
Humans can only experience auditory experiences from sound waves with frequencies between 20 Hz and 20 kHz, or the range of audio frequencies. Humans cannot hear sound waves with frequencies higher than 20 kHz, which are known as ultrasound. Sound frequencies below 20 Hz are referred to as infrasound. Different types of animals have varying hearing ranges.
Hence the correct option is D
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What is an example of the power to tax?
One type of taxation power that is reserved to the states is the imposition of sales taxes on items that are wholly manufactured, purchased, and sold within the state.
What does the taxing authority entail?To pay debts, fund the common defense, and advance the general welfare of the United States, the Congress shall have the power to charge and collect taxes, duties, imposts, and excises; but, all such duties, imposts, and excises shall be uniform throughout the nation.
What kind of authority is the taxing authority?According to Section 8 of Article I of the US Constitution, Congress has the authority to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the general welfare and common defense of the United States."
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a. Dominating
b. Obliging
c. Compromising
d. Integrating
e. Avoiding
Match each of the options above to the items below.
Milton always finds something petty to be upset about. Today Milton is complaining to you that he did not get a shiny new red Swingline stapler like his office mate did
1. Lauryl works hourly shifts at a restaurant and she isn’t happy about her schedule for the upcoming week. You are Lauryl’s coworker and offer to switch schedules with her this week. You don’t have much going on outside of work this week, and one day in the future you may need a favor from her.
2. Your company withdrew the funding you planned to use to put your employees up at a really fancy hotel on this week’s work trip. Instead, you’ll have to stay at a cheap motel and double up in rooms. You announce the disappointing news and quickly move on to other business. There’s no point in fielding questions or complaints since the money just isn’t there.
3. Stanley and Phyllis are both top salespeople at their company. Both believe that the biggest, most important potential clients should be given to them. They decide that a good system is to alternate evenly—one important potential client goes to one of them, then the next goes to the other, etc.
4. Your department has just been given a $4,000 end-of-year bonus. Everyone has an opinion on how it should be spent, including fancy new desk chairs, a big party, a new copy machine, and new laptops. You take a few days to evaluate the office’s needs using historical data and discussing options with each employee individually before finally arriving at a decision that you believe everyone will see as the best decision for all in the group.
Milton always finds something petty to be upset about. Today Milton is complaining to you that he did not get a shiny new red Swingline stapler like his office mate did .This is the correct match 1. Compromising
2. Avoiding
3. Integrating
4. Obliging
1. Lauryl works hourly shifts at a restaurant and she isn’t happy about her schedule for the upcoming week. You are Lauryl’s coworker and offer to switch schedules with her this week. You don’t have much going on outside of work this week, and one day in the future you may need a favour from her. - Compromising
2. Your company withdrew the funding you planned to use to put your employees up at a really fancy hotel on this week’s work trip. Instead, you’ll have to stay at a cheap motel and double up in rooms. You announce the disappointing news and quickly move on to other business. There’s no point in fielding questions or complaints since the money just isn’t there. - Avoiding
3.Stanley and Phyllis are both top salespeople at their company. Both believe that the biggest, most important potential clients should be given to them. They decide that a good system is to alternate evenly—one important potential client goes to one of them, then the next goes to the other, etc. - Integrating
4. Your department has just been given a $4,000 end-of-year bonus. Everyone has an opinion on how it should be spent, including fancy new desk chairs, a big party, a new copy machine, and new laptops. You take a few days to evaluate the office’s needs using historical data and discussing options with each employee individually before finally arriving at a decision that you believe everyone will see as the best decision for all in the group. - Obliging
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in your position of office manager at a legal firm, you are in charge of hiring temporary legal assistants and clerical workers. describe how simon's decision-making process applies to this decision. could that decision be aided by an information system in any way, and if so, how?
The process of choosing a course of action involves identifying a decision, acquiring data, and weighing potential answers.
What is the decision-making process?Making decisions involves:
Intelligence, or problem-solving ability: How many temporary workers are required, for how long, and what qualifications are required?Design, or problem-solving exploration: Which temp agencies are offered, and what are their costs?Options or selecting solutions: Consider the services provided by temp agencies and assess the skills of temporary workers in light of the situation. Implementation, or solution testing: Compare each temporary employee's work to their assignments and other requirements.
This procedure would be aided by an information system that offered the available temps for hire along with relevant details like rate, previous assignments, and assessments.
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What are the benefits of trade agreements between countries?
Free trade agreements do not simply minimize and eliminate tariffs, they additionally help address behind-the-border limitations that would in any other case hinder the go with the flow of items and services;
motivate investment; and improve the rules affecting such troubles as intellectual property, e-commerce and government procurement.
What are the blessings and dangers of exchange agreements?FTAs can force nearby industries to become extra competitive and be counted less on government subsidies. They can open new markets, amplify gross home product (GDP), and invite new investments. FTAs can open up a united states to degradation of natural resources, loss of standard livelihoods, and local employment issues.
What are three essential of exchange agreements?Some frequent features of trade agreements are (1) reciprocity, (2) a most-favoured-nation (MFN) clause, and (3) country wide remedy of nontariff barriers.
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https://brainly.com/question/27190730#SPJ4according to the static theory of capital structure, the optimal capital structure for a company: multiple choice is highly dependent upon a constant debt-equity ratio over time. is independent of the company's tax rate. remains fixed over time. equates marginal tax savings from additional debt to the marginal increased bankruptcy costs of that debt. is independent of the company's debt-equity ratio.
According to the static theory of capital structure, the optimal capital structure for a company equates marginal tax savings from additional debt to the marginally increased bankruptcy costs of that debt. The correct option is c.
What is bankruptcy?Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses. This section explains the bankruptcy process and laws. There are different types of bankruptcies.
All bankruptcy cases are handled in federal courts under rules outlined in the U.S. Bankruptcy Code.
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What factors affect an adjustable rate mortgage?
interest rate for new loans, length of the initial phase, After the introduction period, the frequency of interest rate changes (such as per year) is one of the elements that effect an adjustable rate mortgage.
What is an adjustable-rate mortgage's biggest drawback?The likelihood of your rate increasing is a major drawback of an ARM. Your payment will climb if rates have gone up since you took out the loan.
What results in a rising adjustable-rate mortgage?Based on the market, the index varies. An adjustable-rate mortgage, loan's interest rate fluctuates based on changes in the index and the loan's margin. When you apply for the loan, the lender chooses which index your loan will use, and this decision often won't alter after closing.
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How can cost-benefit analysis help the government choose among alternative investment projects?
The main advantage of cost-benefit analysis is that it may direct investment choices, particularly in the public sector. The Government can select the most advantageous option among them based on a cost-benefit analysis given the resource constraints.
How can the government profit from using cost-benefit analysis?
Cost-benefit analysis has been employed as one technique. In order to evaluate and analyze the discounted streams of future benefits and costs connected with a planned project in terms of money, this tries to accomplish for government programs what the forces of the market do for corporate projects.
What are cost-benefit analyses used for?
It is typical to anticipate that supply and demand will balance out. Comparing the costs and benefits of a certain course of action is the aim of cost-benefit analyses.
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if the usa could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, a. there can be mutual gains from trade if the usa specializes in potatoes because of its comparative advantage in producing potatoes b. there can be mutual gains from trade if the usa specializes in wheat because of its absolute advantage in producing wheat c. there can be mutual gains from trade if the usa specializes in wheat because of its comparative advantage in producing wheat d. there can be no mutual gains from trade
if the USA could produce 1 ton of potatoes or 0.5 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if the usa specializes in wheat because of its comparative advantage in producing wheat
What is comparative advantage?Generally, There can be mutual gains from trade if the USA specialized in wheat because of its comparative advantage in producing wheat.
Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than other countries. The opportunity cost of a good is the value of the next best alternative that must be given up in order to produce that good.
In this case, the USA has a comparative advantage in producing wheat because it has a lower opportunity cost of producing wheat than Ireland. The opportunity cost of producing 1 ton of wheat in the USA is 0.5 tons of potatoes, while the opportunity cost of producing 1 ton of wheat in Ireland is 2 tons of potatoes.
Since the USA has a lower opportunity cost of producing wheat, it is more efficient at producing wheat than Ireland. This means that the USA can specialize in producing wheat and trade with Ireland, which can specialize in producing potatoes, and both countries can benefit from trade.
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What is the purpose of the preamble to the Code of Ethics?
"The aspirational foundation for the moral principles that REALTORS® hold dear is the Preamble to the Code. The fundamental ideas of honesty, integrity, fairness, and moral behaviour in business transactions are all covered.
What is code of ethics ?A set of general rules or ideals is typically what makes up a code of ethics or professional code of ethics. A code of conduct policy is often more detailed and provides instructions on how to react in specific circumstances. An example of a code of conduct rule would be one that specifically forbids taking or giving bribes.It offers a set of norms or guidelines that everyone in the field must follow. It outlines the industry's ideal procedures. It offers a foundation for meeting the profession's compliance standards. It offers a legal benchmark for the occupation.To learn more about code of ethics refer,
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according to the text, which of the following will probably be your most valuable asset at retirement? a. automobile b. house c. investments d. life insurance
Answer:
c. investments
Explanation:
investments because money is the most valuable thing when retiring its how it keeps you and your family running.
Who is responsible for NAFTA?
Presidents George H. W. Bush of the United States, Carlos Salinas de Gortari of Mexico, and Brian Mulroney of Canada agreed to negotiate what would become NAFTA.
What is the purpose of NAFTA?
The agreement went into force on 1 january, 1994. All investments and trade barriers—tariff and nontariff—between the US, Canada, and Mexico are intended to be eliminated by NAFTA.
NAFTA: Did it benefit or harm the US?
Key Learnings. Increased commerce, economic output, foreign investment, and lower consumer costs were some benefits of NAFTA. When domestic firms moved to Mexico, where wages are cheaper, it resulted in the loss of American jobs and a decrease in pay in American manufacturing facilities.
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All of the following are harmful environmental impacts that are the result of emissions from burning coal except
a. carbon dioxide emissions, a potent greenhouse gas.
b. particulate matter emissions that contribute to air pollution.
c. sulfur oxides and nitrogen oxides that contribute to acid depositions.
d. airborne mercury with the potential to cause illnesses.
limestone particles transported by wind currents with the potential to damage ecosystems.
The answer is Limestone particles transported by wind currents with the potential to damage ecosystems.
Burning coal does not typically produce Limestone particles, which are more commonly associated with the burning of other fuels such as oil and natural gas. Limestone particles can damage ecosystems by causing air and water pollution, which can lead to decreased plant and animal health.
An ecosystem is a community of living organisms (plants, animals and microbes) in a particular area. The term `eco' refers to a part of the world and `system' refers to the co-ordinating units.
Types of Ecosystem :
Forest Ecosystem.
Grassland Ecosystem.
Tundra Ecosystem.
Desert Ecosystem.
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Which of the following statements is true regarding the promotion mix?
A. Direct and digital marketing cannot be used to target individual consumers.
B. Advertising is a personal form of marketing communication.
C. The entire marketing mix must be coordinated for greatest impact.
D. Sales promotions are long-term incentives to encourage the purchase or sale of a product or service.
E. Personal selling is not used to engage customers.
The true statement is that the entire marketing mix must be coordinated for the greatest impact.
To maximize promotional efforts and reach a larger audience, marketers create a promotion mix, which is a collection of various marketing strategies. The duty of the marketer is to determine the ideal promotion mix for a specific brand. It is a crucial technique for sending a pertinent marketing message through the platform that is best for each target audience and thus increases client communication.
A coordination of the marketing mix elements is essential for achieving the greatest impact in marketing efforts. The marketing mix consists of the four "Ps" of marketing: product, price, promotion, and place. These elements work together to create a cohesive marketing strategy that is designed to reach the target market and achieve the desired marketing objectives. The strategy is also essential for building a propper promotional mix.
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in the month of march, chester received orders of 153 units at a price of $15.00 for their product cell, and in april receives an order for 38 units of their product cell at $15.00. chester uses the accrual method of accounting and offers 30 day credit terms. chester delivers 0 units in march, 153 units in april and 38 units in may. they received payment for 153 units in april, and payment for 38 units in may. how much revenue is recognized on the march income statement from this order? how much in the april income statement? (answer in thousands)
In the month of march, Chester received orders of 153 units at a price of $15.00 for their product cell, and in April receives an order for 38 units of their product cell at $15.00. the total revenue recognized on the March income statement is $2,295 and the total revenue recognized on the April income statement is $570.
How much revenue is recognized on the March income statement from this order?Generally, Under the accrual method of accounting, revenue is recognized when it is earned, regardless of when payment is received. In this case, Chester earned the revenue for the 153 units in March when they received the orders, even though they did not deliver the units until April. Therefore, the revenue from the 153 units should be recognized on the March income statement.
The total revenue from the 153 units in March is 153 units * $15.00/unit = $<<153*15=2295>>2,295.
For the 38 units in April, Chester earned the revenue in April when they delivered the units, so the revenue from these units should be recognized on the April income statement. The total revenue from the 38 units in April is 38 units * $15.00/unit = $<<38*15=570>>570.
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