The total cost of merchandise as company purchased is $4362.5.
Define the term cash discount?Cash discounts as incentives provided by sellers that decrease the level that the consumer owes by a set dollar amount or by a predetermined percentage of total bill. Discount given in exchange for immediate payment and payment within a certain period of time.Cash discount = (Purchases + Transportation cost - Purchase returns) * Cash discount rate.
Purchases - $4,500
Transportation cost - $395
Purchase returns - $310
Cash discount rate - 3%
Put the values;
Cash discount = (4,500 + 395 - 310) x 3%
Cash discount = $137.5
Total cost = 4500 - 137.5
Total cost = $4362.5
Thus, the total cost of merchandise as company purchased is $4362.5.
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What type of insurance policy allows the buyer to pay a set amount monthly to gain a steady stream of income?.
A life insurance policy is an example of a fixed annuity in which an individual pays a fixed amount each month for a pre-determined time period and receives a fixed income stream during their retirement years.
Insurance is a method of protection from financial loss wherein, in trade for a fee, a celebration agrees to guarantee any other celebration repayment inside the event of a sure loss, damage, or harm. It is a form of danger management, in general used to hedge in opposition to the chance of a contingent or unsure loss. An entity that presents coverage is called an insurer, coverage agency, coverage service, or underwriter. A person or entity who buys coverage is referred to as a policyholder, at the same time as a person or entity blanketed beneath the coverage is called an insured.
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healthy foods just paid its annual dividend of $1.45 a share. the firm recently announced that all future dividends will be increased by 2.8 percent annually. what is one share of this stock worth to you if you require a 14 percent rate of return? multiple choice $12.56 $12.95 $13.31 $13.68 $14.07
Price of one share of the stock will be $13.31.
P0 = D1 ÷ (ke - g)
Where,
P0 is the price = ?
Currently dividend paid, D0 = $1.45 a share
ke is the required return = 14%
g is the growth rate = 2.8%
D1 is the dividend at end of year:
= D0 × (1 + g)
= $1.45 × (1 + 0.028)
= $1.45 × 1.028
= $1.4906
Therefore,
P0 = 1.4906 ÷ (14% - 2.8%)
PO = 1.4906 ÷ (11.2%)
PO = $13.31
Therefore, the price of one share of this stock is $13.31
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To maximize your chances of finding useful information, which of the following should be done at the beginning of a research project? A) Jump in by finding resources on the Internet and taking notes from them. B) Develop a formal outline you plan to stick to throughout your researching and writing. C) Conduct an Internet search to determine areas to investigate. D) Develop the conclusion you want to reach and start looking for evidence that supports that conclusion. E) Familiarize yourself with the subject.
To maximize your chances of finding useful information, Develop a formal outline you plan to stick to throughout your research and writing.
Research is “creative and systematic work done to extend the body of knowledge”. A research project can be an extension of previous work in the field. To test the effectiveness of equipment, procedures, or experiments, investigations can reproduce elements of previous projects or whole projects.
The primary purpose of basic research (as opposed to applied research) is the documentation, discovery, interpretation, and research and development (R&D) of methods and systems for advancing human knowledge. Research approaches rely on widely different epistemologies within and outside the humanities and natural sciences. Research can take many forms, including scientific, humanities, arts, economics, social, business, marketing, practical research, life, and technical research. Scientific studies of research practices are called metastudies.
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n a pure market economy, multiple choice production is determined by the interaction of market forces of supply and demand. collectivist goals are given priority over individual goals. all productive activities are owned by the state. the prices at which goods are sold are determined by the government.
In a pure market economy production is determined by the interaction of market forces of supply and demand.
Producers and consumers are free to make their own economic decisions in a pure market economy without interference from a centralised controlling system. The prices of goods and services may be determined by supply and demand in an ideal world where this freedom empowers buyers and sellers to make sensible economic decisions.
In a market economy, entrepreneurs are free to pursue profit by producing outputs that are worth more than the inputs they consume, or, if they choose not to, to fail and close their doors.
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college president patterson contracts with anissa to teach a business law class. anissa does a fine job teaching, but she has an argument with patterson and will not submit her final course grades. what type of order would patterson seek to require anissa to abide by her contract?
In order to require Anissa to abide by her contract, Patterson would seek an order of specific performance.
In the field of law, an order of specific performance can be described as a type of court order in which the court orders a person to perform the acts that were mentioned when two parties had signed up a contract.
In the scenario above, as Patterson and Anissa had signed a contract for business law, hence Anissa will have to perform all her duties as mentioned in the contract under specific performance. Submitting final course grades will be an essential part of the contract between Anissa and Patterson and hence Patterson can seek an order of specific performance if Anissa fails to do so.
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according to the 2018 internet advertising revenue report conducted by pricewaterhousecoopers, which of the following categories had the major share in the advertising format revenue (half year results) ?
According to PricewaterhouseCoopers' 2018 Internet Advertising Revenue Report, which of the following categories generated the highest percentage of revenue from advertising formats? (Half-year outcomes) -Search
54% of all revenue for the second half of 2021 came from advertising. Both mobile and desktop ad revenue reached historic highs in 2021, with mobile ad revenue growing by 37.4% year over year and desktop ad revenue by 30.7% year over year.
Internet users can receive marketing messages in a variety of formats thanks to digital advertising. This comprises adverts on search engine results pages (Search Advertising), advertisements on social media networks, such as sponsored posts, and commercial banners like, for example, so-called skyscrapers. (Banner Advertising); advertisements within video players (Video Advertising); and paid digital classifieds (Classifieds). The worldwide revenue of US$616 billion in 2022 is expected to grow to US$1,005 billion up to 2027.
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a company has bonds outstanding with a par value of $120,000. the unamortized premium on these bonds is $2,880. if the company retired these bonds at a call price of $116,400, the gain or loss on this retirement is: multiple choice $2,880 loss. $3,600 loss. $6,480 gain. $3,600 gain. $2,880 gain.
The gain on this retirement will be $6,480.
Gain(loss) on retirement = Carrying value of bond - Call Price
Carrying Value = Par Value of bonds + Unamortized premium
= 120,000 + 2,880
= $122,880
Gain(loss) on retirement = Carrying value of bond - Call Price
= 122,880 - 116,400
= $6,480.
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Rather than carrying 15 brands of laundry detergent, ________ offer one or two brands and sizes, one of which is a store brand.
Rather than carrying 15 brands of laundry detergent, extreme-value retailers offer one or two brands and sizes, one of which is a store brand.
Retail is the sale of products and offerings to consumers, in contrast to wholesaling, that's sale to enterprise or institutional clients. A retailer purchases items in massive quantities from producers, without delay or through a wholesaler, after which sells in smaller portions to consumers for earnings. Stores are the final link within the delivery chain from manufacturers to purchasers. Retail markets and shops have a totally historic history, dating again to antiquity. Some of the earliest retailers had been itinerant peddlers. Over the centuries, retail stores were transformed from little more than "rude booths" to state-of-the-art shopping shops of contemporary technology. Inside the virtual age, increasing outlets are seeking to attain broader markets by way of promoting through multiple channels, which include both bricks and mortar and online retailing.
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the direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate.
False, that ought to have been adjusted for the actual output using the difference between the standard and actual labor rates.
A rate is the ratio of two related quantities expressed in distinct units in mathematics. If one of these numbers is used as the ratio's denominator and it is assumed that this quantity may be modified in a predictable way (i.e., is an independent variable), then the numerator of the ratio represents the rate of change in the other (dependent) variable.
Speed, heart rate, and flux are examples of common rates that are expressed as "per unit of time." Exchange rates, literacy rates, and electric fields are a few ratios that don't need time as the denominator (in volts per meter). The word "per" is used to denote the division of the units of the two measurements when specifying the units of a rate.
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the most successful organizations fully integrate their public relations efforts with advertising, marketing, sales, sponsorship, community relations, and social and digital media efforts so that the external messages all reflect the same theme. group of answer choices true false
The process of combining elements of marketing communication, such as public relations, social media, audience analytics, business development principles, and advertising, into a brand identity that is consistent across various media channels is known as integrated marketing communication (IMC).
What is one of the most important factors in a marketing campaign's success?
Planning a successful marketing campaign necessitates understanding your customers' demographics, requirements, and preferences. It will assist you in identifying important touchpoints and customer journeys. Create buyer personas if at all possible, and go one step further. It will make it possible for your brand to interact with the people you want to reach.
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a(n) system collects, stores, and processes data that people in organizations use to manage daily and long-term operations and to create and sell various types of products.
Information system collects, stores, and processes data that people in organizations use to manage daily and long-term operations and to create and sell various types of products.
An information system is a collection of software, hardware, and communication networks used to collect relevant data, often inside an organization. Many organizations rely on information technology to execute and manage tasks, engage with customers, and remain ahead of the competition.
Information systems are collections of various information resources (for example, software, hardware, computer system connections, the system housing, system users, and computer system information) that are used to gather, process, store, and disseminate information.
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When designing a project schedule, the ____________ of the schedule provides the level of detail for monitoring the progress of the project so that everyone has the same understanding of what must be achieved by when.
When designing a project schedule, the network diagrams of the schedule provides the level of detail for monitoring the progress of the project so that everyone has the same understanding of what must be achieved by when
What is a design project schedule?A draft plan is a timeline estimate for specific actions. Design timeline estimates for individual actions are aggregated into project design timeline estimates.
It can be difficult to put everyone on the same page. With multiple moving parts, different deliverables, and cross-departmental collaboration, the initial project meeting may not be enough. Project design is an opportunity to align ideas, processes, and outcomes. This is an early stage in the project lifecycle, often prior to project planning and charter. This is because the focus is on the project overview rather than the specific details. We'll cover the basics of project design, walk you through the seven steps to creating a project design, and share expert tips to help you better understand the process. Project design is the early stage of the project lifecycle, where ideas, processes, resources, and deliverables are planned. A project outline is preferred over a project plan because it contains more detailed information than a project plan, while a project outline provides an overview.
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tina was let go from her job last month and has been collecting unemployment benefits. when not actively looking for a job, she volunteers at the local hospital for approximately 20 hours per week. is tina considered to be employed?
No, Tina will not be considered as employed in the hospital, she is unemployed.
Volunteering is a self-service given to any firm or for individuals in need, when the person who wishes to volunteer is free and is capable of doing the physical work required to be done. Some volunteering services are free of cost while some may be paid. Employment refers to the agreement made between the two parties, one who wishes to do the job is paid while the other who hires the person is bound to pay the employee for their services in a time bound and regular manner. Involuntary unemployment occurs when a person is unemployed despite being willing to work at the prevailing wage. Since Tina does work on a voluntary basis and the work is not regular in nature neither is it paid, hence it cannot be regarded as employment.
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consider kharkeez, a hypothetical country that produces only burgers. in 2019, a burger is priced at $4.00. complete the first row of the table with the quantity of burgers that can be bought with $700. hint: in this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. for example, if your calculations result in 1.5 burgers, the answer should be 1 burger. year price of a burger burgers bought with $700 (dollars) (quantity) 2019 4.00 2020 suppose the government of kharkeez cannot raise sufficient tax revenue to pay its debts. in order to meet its debt obligations, the government prints money. as a result, the money supply rises by 20% by 2020. assuming monetary neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $700 in 2020. the impact of the government's decision to raise revenue by printing money on the value of money is known as the .
The value of money is 145 burgers . money on the value of money is known as the inflation tax.
What does inflation mean in plain English?
The rate at which prices increase over a specific time period is known as inflation. Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living.
2017
price of burgers is 4 and total spending is 700
quantity of burgers = spending/price = 700/4 = 175
2018Price of burger in 2018 = (1+inflation)*price 2017
= 1.2*4 = 4.8
Thus, quantiity 2018 = 700/4.8 = 145.8 = 145 burgers
The impact of the government's decision to raise revenue by printing money on the value of money is known as the inflation tax.
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identify the benefits of budgeting. select all answers that apply. multiple select question. assists in the control function. motivates employees. focuses on future opportunities. focuses on daily operations. leads to uncertainty among employees.
The budget is thus an outcome of the planning process. The budget is a crucial instrument for the evaluation and control of sources and uses.
Describe a budget.Plans for spending money that are based on income and expenses are called budgets. In other words, it's a forecast of your earnings and spending for a given period of time, such as a month or a year.
You may reach your financial objectives with a budget, have peace of mind, and set "guardrails" (i.e., limitations) for your spending. This is assuming that you count savings as a fixed "cost."
Budgeting is what it is, and why is it useful?Making a spending plan is the process of budgeting. Budget alludes to this financial strategy. You can analyze your financial status and determine whether you will have enough money to achieve your goals by creating a spending plan. Budgeting consists solely of balancing.
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Which of the following is the typlcal sequence of accounting for sales made on account using the allowance method? Place in order of occurrence from top to bottom. Place these in the proper order. A. Specific customer balances are written off B. Bad Debt Expense is estimated and recorded with an adjusting entry C. Accounts Receivable are debited in the period the revenue is recognized
The order of occurrence from top to bottom are-
C. Accounts Receivable are debited in the period the revenue is recognized. B. Bad Debt Expense is estimated and recorded with an adjusting entry A. Specific customer balances are written off .
Define the term allowance method?The allowance technique compares the sales to the projected costs or penalties from uncollectible receivables.
Our accounts receivable are listed on the balance sheet. This number is frequently off because we won't probably be able to acquire all of them.The allowance technique is completely ignoring a reserve for anticipated future bad debts. The reserve is determined as a portion of the sales made during a reporting period, with the percentage of sales possibly being adjusted for client risk.Thus, the sequence for accounting for products sold on account that used the allowance technique, in order of appearance from top to bottom, is as follows:
C. Accounts Receivable are debited in the period the revenue is recognized. B. Bad Debt Expense is estimated and recorded with an adjusting entry A. Specific customer balances are written offTo know more about the allowance method, here
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the inventory costing method where the unit sold is identified with a specific purchase and the ending inventory is made up of the remaining units on hand is known as the
The average value technique uses the weighted-average of all inventory purchased in a length to assign cost to value of items offered (COGS) as properly as the fee of goods still reachable for sale.
What is specific identification technique for stock costing?The unique identification method relates to inventory valuation, specially keeping song of every unique object in stock and assigning fees personally as an alternative of grouping gadgets together. It is beneficial and usable when a enterprise is in a position to identify, mark, and track every item or unit in its inventory.
Why is average cost technique used?The average-cost approach is beneficial to companies for a number of reasons. It assigns cost to the price of goods bought (COGS) via the use of the weighted common of all the inventory that the employer bought at some point of a length of time. The period may want to be a month, quarter, or annual period, so long as it remains consistent.
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https://brainly.com/question/13084950#SPJ4jackson deposits $260 each month into a savings account earning interest at the rate of 8% per year compounded monthly. how much will he have in this account at the end of 5 years?
Jackson will have $23242 in his saving account at the end of 5 years.
Define the term savings account?Savings is the money that remains after expenses and other commitments have been subtracted from income. Savings are the sum of money that would otherwise be lying about, not being risked on investments or used for consumption.An essential sort of financial instrument is a savings account, which enables you to deposit funds and normally earns a moderate rate of interest.The formula for calculating the compound interest is-
A = P(1 + r/n100)∧nt
A = Total amount after compoundingP = principal amount ($260 x 12 x 5)n = number of time compounded (12)t = total time in years ( 5 years)r = rate of interest (8% per year).A = 260 x 12 x 5 (1 + 8/1200)∧(12 x 5)
A = 260 x 12 x 5 x 1.48
A = 23,242
Thus, Jackson will have $23,242 in his saving account at the end of 5 years.
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instructions: following is a list of general company characteristics. read each characteristic carefully and determine whether it is a strength, weakness, opportunity, or threat. click and drag each label to its correct spot on the swot matrix.
A SWOT analysis determines internal strengths and weaknesses and external opportunities and threats.
The SWOT (strengths, weaknesses, opportunities, and threats) analytical framework is used to assess a company's competitive position and create strategic planning. SWOT analysis assesses internal and external effects as well as current and potential future conditions.
The purpose of a SWOT analysis is to make it possible to examine the benefits and drawbacks of a company, its tactics, or the market it operates in in a practical, fact-based, and data-driven manner. The organization needs to keep the analysis accurate by eliminating preconceived conceptions or gray areas and focusing on real-life scenarios. Businesses should use it as a suggestion rather than a rigid prescription.
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If alain were asked to take notes at the executive team meeting, the document he created would be called what?.
The document that he created would be called the meeting minutes.
What are the meeting minutes?Minutes, also referred to as protocols or, more colloquially, notes, are the immediate written record of a meeting or hearing. The acronym MoM is used to refer to minutes of meetings. In general, they provide a summary of the proceedings and may include a list of attendees, a statement of the activities that were discussed, and responses or decisions made in relation to those activities. A court reporter or typist may record the meeting's proceedings in shorthand, type the minutes afterward, and distribute them to the attendees. A group may also elect to have the meeting audio or visually recorded, or a secretary may be formally or formally appointed to take notes, which will be used to create minutes later. For the purpose of recording and creating all minutes in real-time, many government agencies use minutes recording software.
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true or false: the push strategy is when the producer uses wholesaler discounts, personal selling, sales promotion contests, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise. true false question. true false
True, the push strategy is when the producer uses wholesaler discounts, personal selling, sales promotion contests, and other promotional tools to convince wholesalers and retailers to stock and sell its merchandise.
What is push strategy ?
A "push" promotional approach uses a company's sales team and trade marketing initiatives to generate demand from customers for a product. Producers market their goods to distributors, who then market them to retailers, who then market them to customers.What is an example of a push strategy?
Bypassing existing distribution channels, a push strategy aims to sell to customers directly. Direct sales of travel or insurance are two examples of this. The most likely promotional tactics with this kind of plan are consumer promotions and advertising.Learn more about push strategy
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select all that apply suppose jack pays his employees $19.25 per hour at his organic rice packaging plant. he does this even though the market rate for this type of work is only $12.50 per hour. what economic explanation can you give for this?
Jack, in my judgement, accepts the efficiency wage hypothesis. According to this hypothesis, raising wages will result in higher labour productivity, fewer employee turnover, and the recruitment of the best candidates.
Therefore, when Jack raises his employees' pay, the improved output will make up for the higher labour expenditures. Jack thinks that by paying greater wages in the end, his profit will rise. According to the efficiency wage theory, raising salaries can enhance labour productivity since it motivates employees to work harder.
Thus, if businesses raise pay, some or all of the higher wage costs will be offset by greater labour productivity and staff retention rates. According to the efficiency wage theory, you should pay your employees more than the going rate for their position.
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Achieving increased productivity to benefit the worker and the firm was the goal of?
Achieving increased productivity to benefit the worker and the firm was the goal of Frederick Taylor.
Frederick Winslow Taylor is regarded as the founder of scientific management, or "Taylorism." According to Taylor, the optimal approach for a person to perform a task should be determined, and the right equipment and training should be provided.
Taylor's research focused on raising productivity and, consequently, profitability, and his objective was to do so without overworking employees. Instead of just paying for the job, Taylor believed in identifying the right job for the right worker and rewarding those who worked well for enhanced productivity.
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the rationale for ability-to-pay taxation and the contention that those with large incomes should pay more taxes both absolutely and relatively is that: group of answer choices taxes should be paid for financing public goods in direct proportion to the satisfaction an individual derives from those goods. the transfer system is regressive and it is therefore essential to have an offsetting progressive tax structure. rational consumers spend their first dollars of income on the most urgently desired goods and successive dollars on less essential goods. high-income receivers are generally in a better position to shift taxes than are low-income receivers.
The benefit principle, which is based on the idea that those who benefit more from government spending or expenditures should pay more taxes than those who do not, is a principle in taxation.
This notion establishes who should bear the cost of government expenditures and how they should be targeted.
People with higher incomes are required to pay a larger percentage of their income in taxes under a progressive tax system.
Progressive taxes are based on the idea that those with higher incomes should be expected to pay for a larger proportion of public services than those with lower incomes.
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one option for altering the pattern of demand through aggregate planning is a. using overtime. b. carrying inventory. c. subcontracting d. pricing.
One option for altering the pattern of demand through aggregate planning is: d. pricing.
What is pricing?
Pricing can be defined as the way a business owner or companies tend to set a price for their products which implies that the set price is the price they intend to sell the product to buyers.
Using overtime, carrying inventory as well substracting does not alter the pattern of demand, making option D the correct option.
Therefore the correct option is D.
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materials used by the instrument division of ziegler inc. are currently purchased from outside suppliers at a cost of $1,350 per unit. however, the same materials are available from the components division. the components division has unused capacity and can produce the materials needed by the instrument division at a variable cost of $900 per unit. assume that a transfer price of $1,200 has been established and that 75,000 units of materials are transferred, with no reduction in the components division's current sales. a. how much would ziegler inc.'s total operating income increase? $fill in the blank 1 b. how much would the instrument division's operating income increase? $fill in the blank 2 c. how much would the components division's operating income increase? $fill in the blank 3 d. any transfer price will cause the total income of the company to , as long as the supplier division capacity is toward making materials for products that are ultimately sold to the outside.
The answers to the following options are: a) $33750000, b) $11250000, c) $22500000
a) How much would Ziegler Inc. total income of operating increase.
Units X (Cost of purchased from outside supplier - Variable cost)
75000 X ($1350 - $900) = $33750000
b) How much would the Instrument Division's operating income increase
Units X (Cost of purchased from outside supplier - Transfer Price)
75000 units * ($1350 - $1200) = $11250000
c) How much would the Components Division's operating income increase?
Units X (Transfer Price - Variable cost)
75000 units X ($1200 - $900) = $22500000
EBIT, or earnings before interest and taxes, is a financial and accounting term for a company's profit. Interest and tax payments are not included in EBIT. Operating income is a company's adjusted revenue that has been adjusted for depreciation and all other operating expenses. Operating expenses are the costs incurred to sustain the operation of the business. A larger operating margin indicates that the company is producing enough money from its activities to pay for all of its operational expenses.
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in a company's swot analysis, which of the following is an example of a threat? a. the company makes a low quality product. b. the company's employees have bad morale. c. there are many competitors in the market. d. the market is not very saturated.
The market is crowded with rival brands. The following details must to be taken into account: The threat example should be used in the SWOT analysis of the organisation when there are numerous rivals in the market. Other instances are not viewed as dangerous.
SWOT analysis is a framework used to assess a company's competitive position and to create strategic planning. It stands for strengths, weaknesses, opportunities, and threats. The SWOT analysis evaluates internal and external variables as well as present and anticipated future situations.
A SWOT analysis is intended to help you take a practical, fact-based, and data-driven look at the advantages and disadvantages of a company, its efforts, or its sector. The organisation must maintain the analyses' objectivity by eliminating preconceived notions or murky areas and concentrating on.
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carrie works as a professional photographer and produces visuals for businesses of all kinds. her work appears in catalogs, advertisements, and on corporate websites. what type of photographer is carrie? a. scientific photographer b. portrait photographer c. photojournalist d. commercial photographer
We can say that Carrie is a (D) commercial photographer.
Who is a commercial photographer?Commercial photographer creates photos that promote the goods or services of their clients. They could operate independently or as a group. When they are working alone, they are frequently tasked with developing thoughts that support the realization of their client's visions.The main goal of commercial photography is to advertise companies, goods, and services. Commercial photographers are masters at getting the best shots of you, your company, your goods, and your services to showcase your mission and convey your sales message.Therefore, we can say that Carrie is a (D) commercial photographer.
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For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Value Years Interest Rate Future
$ 2,800 8 17%
9,153 21 9
96,305 15 10
234,382 31 3
Future value (FV) is the value of a cutting-edge asset at a future date based on an assumed fee of growth.
The future fee is essential to investors and economic planners, as they use it to estimate how much an funding made nowadays will be worth in the future.
How do I calculate future value?You can calculate future fee with compound hobby using this formula: future cost = existing cost x (1 + activity rate)n. To calculate future value with simple interest, use this formula: future price = current value x [1 + (interest rate x time)].
For example, if you make investments $1,000 in a financial savings account today at a 2% annual interest rate, it will be well worth $1,020 at the cease of one year. Therefore, its future fee is $1,020.
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https://brainly.com/question/25805668#SPJ4On October 1, a company received $19920 cash as a down payment on a consulting contract. The amount was credited to Unearned Consulting Re the year-end, 65% of the services required by the contract were completed. What will be the amount the company record as a consulting revenue fro contract at year-end?
A company's operating revenues must be entered into the general ledger and then every reporting period reported on an income statement. Revenues are acknowledged when they are earned, not always when they are received.
What is Revenue contract:
According to generally recognized accounting rules, a transaction must be signaled by a crucial event, such as the sale of goods or the completion of a project, and payment for the good or service must correspond to the stated price or mutually agreed-upon fee. When a consumer makes a retail in-store purchase, for example, revenues are frequently made and received concurrently.
Take into account the case where a clothes store registers sales when a consumer buys a new pair of pants. When the cashier scans the bar code and rings up the items for a specific amount, which corresponds to the price on the price tag, that is the important event. Once the customer has made a payment for the purchase, the revenue recognition procedure is finished. If a customer returns any pieces of product, the store records that transaction individually in its books and adjusts its overall revenues.
According to GAAP, revenues are acknowledged when they are earned and realized, not necessarily when they are received. However, as in the example of the retail business stated earlier, revenues are frequently earned and received in a single transaction. However, the example of the engineering firm shows how there might be a delay between the realization of earnings and receiving payment.
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