When should DJD recognize revenue
Q: What is concept of unearned revenue?
A: When a amount is received in advance for a service or goods and as on reporting date such service is…
Q: what are the Processes and/or technologies which are or could be incorporated in the expenditure and…
A: Both Revenue and Expenditure cycles are the key components in controlling the cash flows of an…
Q: What is a performance obligation, and how is it used todetermine when revenue should be recognized?
A: The performance obligation is the promise made by the business entity to provide the goods or…
Q: Explain a bill-and-hold sale. When is revenue recognizedin these situations?
A: When the buyer is not ready to take the delivery but accepts the title and the billing, then it is…
Q: amount should be reported as deferred revenue
A: Deferred revenue, January 1 800,000 Gift certificates sold 5,000,000 Total deferred revenue…
Q: What is the authoritative literature addressing revenue recognition when right of return exists?
A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…
Q: When should revenue be recognised? Are there exceptions to the general rule?
A: Definition: The revenue recognition principle: The revenue recognition principle refers to the…
Q: Distinguish between the stand-alone and the incremental revenue-allocation methods.
A:
Q: Understand the concept of relevant revenues and costs. What makes a revenue or cost relevant?…
A: solution concept relevant revenue relevant revenue means the revenue which has the…
Q: Choice Are revenue expenditures.
A: Extraordinary repairs are repairs that are of high cost and increase the useful life of the asset…
Q: Define Unearned revenue
A: Definition: Deferred revenues: Deferred revenue is a liability to render service or to deliver…
Q: What is a deferred revenue? Provide an example.
A: Deferred revenue: Deferred revenues are revenues related to more than one period. A deferred…
Q: Explain when it is appropriate to recognize revenue at a single point in time.
A: Revenue refers to the amount of the earning which an organization earns for performing the services.…
Q: What qualitative and quantitative disclosures arerequired related to revenue recognition?
A: Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific…
Q: Define the term unearned revenue.
A: Deferred revenues: Deferred revenue is a liability to render service or to deliver products in…
Q: When does a consignor typically recognize revenue for a consignment sale?
A: Meaning of Consignment Sale Consignment Sale is refer as the arrangement of trade where the seller…
Q: Define the term revenue expenditure.
A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which…
Q: How do unearned revenues arise?
A:
Q: How does Dropbox apply GAAP to revenue recognition? Explain and give examples.
A: Generally Accepted Accounting(GAAP) GAAP are a set of rules the encompass the details, complexities…
Q: How is a revenue-recognition abuse related to the percentage of completion method?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: When is revenue recognized with respect to licenses?
A: In case of Licences, revenue is recognised in two ways depending on the type of transaction. If the…
Q: Discuss, using practical example how revenue expenditure should not be capitalized?
A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…
Q: Why is the revenue recognition principle needed? What does it demand?
A: Revenue recognition forms a part of generally accepted accounting principles (GAAP) that determines…
Q: Explain what is meant by the phrase matched with revenues
A: The term matched with revenues means to recognize expenses in the same period as the related…
Q: Distinguish between Service Projects and Revenue Projects?
A: Service Projects: Service projects are those projects which are carried out for the welfare of…
Q: Why does Recognizee revenue when (or as) each performance obligation is satisfied,” is important?
A: Performance obligations are promises to transfer goods or services to a customer. In a transaction…
Q: Define Core Revenue Recognition Principle.
A: The core principle of revenue recognition standard is that an entity should recognize revenue to…
Q: What are the primary control procedures to ensure completeness of recorded revenues?
A:
Q: Define revenue-producing assets.
A: Current assets: The assets which could be converted into cash within one year like accounts…
Q: At which points in the revenue cycle are independent verification controls necessary?
A:
Q: Explain a principal-agent relationship and its significanceto revenue recognition.
A:
Q: Name the major subsystems of the revenue cycle.
A: Revenue cycle refers to tracking a revenue transaction from its beginning to end i.e. from receiving…
Q: Define unearned revenues.
A: Definition: Income: This is the amount earned from the operations of a business. The operating…
Q: What are the revenue cycles ( in proper order)
A: Introduction:- Revenue cycles normally starts from receiving order from consumers or entering in…
Q: Define the term service revenue.
A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…
Q: When must multiple performance obligations in a revenuearrangement be accounted for separately?
A: Performance Obligation: Performance obligation means a promise to transfer goods or services. A…
Q: Explain the function of the receiving department in the revenue cycle.
A:
Q: Define revenues
A:
Q: Which one of the following is a revenue expenditure?
A: Revenue expenditure: It refers to the amount spent on normal maintenance and repairs of fixed assets…
Q: ASPE and IFRS.
A: Introduction: Revenue recognition: Revenue recognition is an accounting theory that defines the…
Q: Explain the mind the relation between the recognition of deferred revenue associated with advance…
A: Deferrals: Deferrals refer to “Transactions, events, or arrangements” where in the cash flows are…
Kindly answer no. 1 thank you
Step by step
Solved in 2 steps
- 1. Should SS upgrade its production line or replace it? Show your calculations 2. Suppose the one-time equipment cost to replace the production equipment is negotiable.All other data are as given previously. What is the maximum one-time equipment cost that SSwould be willing to pay to replace the old equipment rather than upgrade it?8. If a FVTPL financial asset is bought, the investment account is Multiple-Choice O A. Debited for the cost of the financial asset NOT including any extra expenditures required in making t he purchase O B. Debited for the cost of the financial asset including any extra expenditures required in making the pu rchase O C. Credited for the cost of the financial asset including any extra expenditures required in making the p urchase D. Credited for the cost of the financial asset NOT including any extra expenditures required in making the purchase8. Analysis of a replacement project Aa Aa At times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment. The company will need to do replacement analysis to determine which option is the best financial decision for the company. Johnson Co. is considering replacing an existing piece of equipment. The project involves the following: The new equipment will have a cost of $1,800,000, and it will be depreciated on a straight-line basis over a period of six years (years 1-6). • The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of depreciation left ($50,000 per year). The new equipment will have a salvage value of $0 at the end of the project's life (year 6). The old machine has a current salvage value (at year 0) of $300,000. Replacing the old machine will require an investment in net working capital (NWC) of $60,000 that will be…
- b. Table Q4(i) and Q4(ii) provides the information on Item E and Item F for the assessment of Replacement Analysis. Determine the Abandonment period for item E in considering all necessary values. Tables are provided below. Question 4 Table Q4(i) Information on Item E Total Marginal Cost (TC) End of Year EUAC 1 $35k 27k 2 29k 22k 3 25k 21k 4 22k 23k End of Year Table Q4(ii): Information on Item F Total Marginal Cost (TC) EUAC 25k 27k 26k 1 $30k 27k 23k 2 3 4 21k 28k2. Which of the following costs would most likely be a discretionary fixed cost? A. The rent of the store. B. The depreciation of the equipment. C. Real estate tax. D. Advertising.When determining the best time to replace an existing asset, for what reason would you need to use marginal analysis?a. To determine what the most appropriate tax rate for the project should beb. To estimate the cost of capital for the new assetc. To determine if the defender asset should be used beyond its ESL.d. To determine the length of time the challenger asset should be used once it is placed into service.
- Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? If an input box should be blank, enter a zero. Land Building Purchase price of land Demolition of old building Architect's fees Legal fees Construction costs Salvaged materials Total 2. Next Level If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect on the financial statements?This topic is about borrowing costs. based on the problem in the picture, Please choose the letter of the correct answer below; How much borrowing costs are capitalized to the cost of the constructed qualifying asset? a. 1,045,000b. 970,900c. 1,026,667d. 920,000 How much is the cost of the qualifying asset on initial recognition? a. 13,010,000b. 15,045,000c. 14,920,000d. 14,970,900Please answer all the following questions. Kindly show the complete solution. Thank you so much. *Please refer to the picture below for the other information* Q1. What is the correct cost of the land? a. P231,500 b. P225,000 c. P227,000 d. P244,500 Q2. What is the correct cost of the new building? a. P326,950 b. P316,500 c. P313,500 d. P304,500 Q3. What is the correct cost of the land improvements? a. P24,000 b. P26,000 c. P23,200 d. P0 Q4. What is the correct net amount charged against income statement for 2016? a. P115,861 b. P108,250 c. P33,250 d. P120,000
- 3. Analysis of a replacement project At times firms will need to decide if they want to continue to use their current equipment or replace the equipment with newer equipment. The company will need to do replacement analysis to determine which option is the best financial decision for the company. Price Co. is considering replacing an existing piece of equipment. The project involves the following: • The new equipment will have a cost of $1,800,000, and it will be depreciated on a straight-line basis over a period of six years (years 1–6). • The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year 0) and four more years of depreciation left ($50,000 per year). • The new equipment will have a salvage value of $0 at the end of the project's life (year 6). The old machine has a current salvage value (at year 0) of $300,000. • Replacing the old machine will require an investment in net working capital (NOWC) of $50,000…Warner Borg Is a leading global supplier of highly engineered automotive systems and components primarily for powertrain applications. The following note was contained in its recent annual report: NOTE 3.INVENTORIES, NET aN of December 31 (in millionsm) Current Year $ 321.7 Prior Year $ 282.0 Raw materials and supplies Work in progess Finished goods FIFO inventories 90.2 79.2 117.6 116.8 528.7 478.8 (16.5) $ 462.3 LIFO reserve (18.4) $ 510.3 Total inventories, net Required: 1. What amount of ending inventory would have been reported in the current year if Warner Borg had used only FIFO? (Enter your answer in millions rounded to 1 decimal place.) 2. The cost of goods sold reported by Warner Borg for the current year was $6,598.9 million. Determine the cost of goods sold that would have been reported if Warner Borg had used only FIFO for both years. (Enter your answer in millions rounded to 1 decimal place.) 3. To lower the cash outflows for taxes, which of the following should the…17 The cost of a new building that is currently under construction, not for sale but for a company's own use, is reported on the balance sheet: Multiple Choice as an asset called Work in Process. after construction is complete. as an asset called Construction in Progress. as a liability until construction is complete.