Answer:
d. is the amount of consideration that a company expects to receive from a customer.
Explanation:
The price of the transaction is the expected amount that the customer receives to transfer the goods and services. This transaction price depends on the project being completed.
The transaction price plays a major role in recognizing the revenue as it specifies the contract with the customer, performance obligations, after which only the transaction price is evaluated, then the allocation is done and finally revenue is recognized
Answer:
False
Explanation:
If it becomes easier to sell an asset in the secondary market, it means that the asset's demand increases, therefore the asset is more desirable. Usually the demand for an asset increases due to two main reasons:
- the expected return of the asset increases relative to that of an alternative assets
- the asset's risk lowers relative to that of alternative assets
Answer:
Total consumer surplus is $12
Explanation:
Consumer surplus refers to the benefit derived by the consumer from the amount he is willing to pay as against market price. For example, Glee is willing to pay $10 for a product. The market price of the product is $5. His consumer surplus will be $5 (benefit).
Here, market price is $5.
Buyer is willing to spend $10 for first unit. Consumer surplus is $5 (10 - 5)
Buyer is willing to spend $9 for second unit. Consumer surplus is $4 (9 - 5)
Buyer is willing to spend $8 for third unit. Consumer surplus is $3 (8 - 5)
Total consumer surplus is $12 (5 + 4 + 3)
Answer:
B) Cash A/c Dr $18,000
To Long-Term Notes Payable $18,000
Explanation:
Since we have to pass the journal entry for the beginning year, so we have to record the issued amount also,
The journal entry is shown below:
Cash A/c Dr $18,000
To Long-Term Notes Payable $18,000
(Being long term notes payable)
The principal installment amount should not be considered in the recording of the journal entry. Hence, it is ignored.
Land and equipment are considered as fixed assets. As such, Julia should enter the two in long term fixed assets column and list their current values.
Short term assets
Long term fixed assets
Gross value of building
- Total depreciation value.
Over time though, she should carry out valuation to have a true picture of how the land has appreciated in value.