Sales returns affect net cash collections when a customer has the right to return a product for a refund, and the firm can reasonably estimate the amount of returns at the time of sale, U.S. GAAP and IFRS
a. require that the firm use the allowance method to estimate and recognize the effects of returns.
b. the selling firm debits a revenue contra account for expected returns to reduce current period revenues to the estimated amount that will not be returned.
c. require that the firm measures revenues based on the amount of cash it expects to collect from current period sales.
d. preclude revenue recognition when customers have the right to return goods unless the firm can reasonably estimate the amount of returns.
e. all of the above
E
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Lavender Company purchased a machine on January 1, 2016, for $80,000. The machine has an estimated useful life of 5 years with a salvage value of $10,000. It is being depreciated using the straight-line method. On January 1, 2018, Lavender reevaluated the machine's useful life and now believes it will continue for another 5 years (for a total of 7 years) and have no salvage value at the end of
its useful life. What is the amount of depreciation expense related to this machine for the year ended December 31, 2018? A) $14,000 B) $10,400 C) $8,400 D) $7,430
Survey questionnaires may be administered in four major modes: 1. telephone interview, 2. personal interviews, 3 . mall interviews, and 4. electronic interviews (Figure 7.4 in text)
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1.Coaching is a way to provide ongoing feedback to employees about their job performance. 2.Gross negligence is intentional behavior that has the potential to cause great harm to another or to the company. 3.In situational management, an autocratic style is high in direction and low in supportiveness. 4.In situational management, an empowering style is appropriate when interacting with outstanding employees. 5.In the commitment stage of the change process the individual level of commitment can continue to change.
Which of the following problem-solving techniques begins with group members not knowing the exact nature of the problem?
A. The Gordon method B. Parameter analysis C. Free association D. Matrix charting