Recognition of revenue usually occurs when
a. the firm pays for the related expenses.
b. the revenue is earned, such as at the time of the sale or delivery of the goods.
c. a signed, legally binding contract is received.
d. an advance payment for the goods is received.
e. none of the above.
B
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Mark works as a bartender at The Little Nipper, a local bar. Under state law, bartenders are required to be licensed. The licensing requires filling out an application and submitting a $50 application fee. The application does not require any special education or experience, just the $50 fee. Craig enters Mark's bar, orders a round of drinks for the house, then notices that Mark's license is not
on display behind the bar. Craig learns that Mark is not licensed and refuses to pay for the round of drinks. The Little Nipper sues. What result? a. Since this is an illegal contract, the courts will not enforce it. b. Since Mark violated a regulatory statute, the contract is unenforceable. c. Since this is a revenue-raising statute, The Little Nipper wins. d. Since this is a revenue-raising statute, the licensing law is unconstitutional. Craig wins.
Macy's has an endorsement contract with Martha Stewart for several lines of kitchen items, as well as bed linens. JC Penney negotiated with Ms. Stewart for a similar endorsement agreement for their kitchen and bedroom lines of products. Macy's feels that the multiple endorsements affect the sales of their products. Which of the following would be a basis for a Macy's suit against JC Penney?
A) ?Intentional infliction of emotional distress B) ?Appropriation C) ?Invasion of privacy D) Tortious interference
Ostler Hotel bases its budgets on guest-days. The hotel's static budget for April appears below: Budgeted number of guest-days 8,700Budgeted variable overhead costs: Supplies (@$7.00 per guest-day)$60,900Laundry (@$3.80 per guest-day) 33,060Total variable overhead cost 93,960Budgeted fixed overhead costs: Wages and salaries 80,910Occupancy costs 38,280Total fixed overhead cost 119,190Total overhead cost$213,150?The total overhead cost at an activity level of 9,700 guest-days per month should be:
A. $223,950 B. $224,920 C. $237,650 D. $213,150