As a general rule, revenue is recognized at the point of sale. Which one of the following situations illustrates this rule?
a. Products are sold to customers on credit with payment due in 30 days.
b. Employees are paid wages the week after the wages are earned.
c. Products are purchased for resale purposes.
d. Interest is collected from amounts loaned to employees.
a
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National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?
A. $14.52 B. $14.89 C. $15.26 D. $15.64 E. $16.03
On January 1, Jewel Company buys $204,000 of Marcelo Corp. 10%, 36-month notes. Interest is paid on the last day of each month. The notes are classified as available-for-sale securities. This is the company's first and only investment in available-for-sale securities. On December 31, the notes have a fair value of $207,700. The impact on Jewel's net income as a result of its investment in Marcelo Corp. was a(n) (Round your intermediate dollar values to the nearest dollar amount):
A. Decrease to income of $20,400. B. Increase to income of $1700. C. Increase to income of $24,100. D. Decrease to income of $24,100. E. Increase to income of $20,400.
A(n) ________ card allows you to pay for a purchase directly from your checking account without writing a check
A) credit B) debit C) expense D) travel
Peter was awarded a bonus for meeting the sales target set by his company for the first quarter of 2013. Which of the following incentive measures has the company used to reward Peter?
A. Amount of output B. Success in reaching goals C. Cost efficiency D. Quality of output