Which of the following best describes the condition(s) that must be present for the recognition of revenue?

Group of answer choices

Revenue is recognized at the end of each reporting period.

Revenue is recognized when the good or service is provided and payment is collected.

Revenue is recognized when no sales return is allowed.

Revenue is recognized when the good or service is provided regardless if payment is received.

The revenue equation​ (in hunderds of millions of​ dollars) for barley production in a certain country is approximated by

R(x)=0.0614 x squared +1.4394x+2.1237

where x is in hundreds of millions of bushels. Find the​ marginal-revenue equation and use it to find the marginal revenue for the production of the given number of bushels.

​(a) The​ marginal-revenue equation is R′(x)=how. much

​(Round to four decimal places as​ needed.)

​(b) Find the marginal revenue for the production of 300,000,000 bushels.The marginal revenue is how much hundred million dollars.

(Type an integer or decimal rounded to two decimal places as​ needed.)

​(c) Find the marginal revenue for the production of 450,000,000 bushels.The marginal revenue is how much hundred million dollars.

​(Type an integer or decimal rounded to two decimal places as​ needed.)

1. Hotel has submitted an income statement for the end of the month that shows a net profit of $10,000. You will need to show that income statement based on the following given information. Food revenue and room’s revenue are the only two forms of revenue and food revenue is exactly the same as room revenue. Direct operating expenses for food is 50% of food revenue and direct operating expenses for rooms is 35% of room’s revenue. Marketing expenses are 20% of Total revenue, rent is 7%, A&G is 6%, Utilities are 8% Depreciation is 5%, Interest is 5% and Net Profit is 5%. Please put together a common-size income Statement using the correct format for the Hotel and make sure that you calculate the correct taxes (the only other additional expenses on the income statement) .

Two undergraduate accounting learners discussed the timing of revenue recognition for long-term construction contracts in their online course discussion area. The discussion focused on which method was most like the typical revenue recognition method of recognizing revenue at the point of product delivery. William argued that recognizing revenue upon project completion was preferable because it was analogous to recognizing revenue at the point of delivery. Sarah disagreed and supported recognizing revenue over time, stating that it was analogous to accruing revenue as a performance obligation was satisfied. Sarah also pointed out that as an advantage of recognizing revenue over time is that it provides information sooner to users.

Discuss the arguments made by both learners; select which of the two arguments you would support and fully detail why you would choose this argument.

1. Assets total $100,000 and liabilities total $20,000. What is the equity of the business?  
   1. $800  
   2. $8,000  
   3. $80,000  
   4. $88,000
   5. None of the above
2. If during the accounting period the assets decreased by $10,000, and equity increased by $2,000, then how did liabilities change?  

1. Increased by $12,000  
2. Increased by $8,000  
3. Decreased by $12,000
4. Decreased by $8,000  
5. Decreased by $6,000

3. If during the accounting period the assets increased by $14,000, and equity increased by $4,000, then how did liabilities change?  

1. Increased by $10,000  
2. Increased by $4,000  
3. Decreased by $4,000
4. Decreased by $10,000  
5. Decreased by $18,000

4. Purchasing equipment on account will have what effect on the accounting equation?  

1. Increase in equipment and a decrease in equity  
2. Increase in equipment and an increase in equity  
3. Increase in equipment and an increase in liabilities  
4. Increase in equipment and a decrease in liabilities  
5. None of the above

5. Services rendered for which cash has not yet been received will have what effect on the components of the accounting equation?  

1. Increase in accounts receivable and a decrease in equity  
2. Increase in accounts receivable and an increase in equity  
3. Decrease in accounts receivable and an increase in equity  
4. Increase in fees earned and a decrease in equity  
5. Decrease in accounts receivable and a decrease in equity

6. Problem #1 Professor Quark opens his own company, Electronic Tutorial Services, and completes the following transactions in June:

• 6/1 Quark invests $12,000 into the business.
• 6/3 Purchased $1,800 of equipment on account.
• 6/4 Paid $360 for a two-year insurance policy.
• 6/6 Purchased office supplies for cash, $300.
• 6/9 Purchased a new computer for $7,500. Paid $1,500 cash agreed to pay the remainder in 30 days.
• 6/10 Billed student Fiona Smith $40 for tutorial services that were performed.
• 6/14 Paid for the equipment purchased on June 3rd.
• 6/25 Received $35 cash from student Bert Bantrum for tutorial services performed.
• 6/30 Student billed on June 10 pays the amount due to Quark.
• 6/30 Quark withdraws $500 for personal use.

Required: Prepare the journal entries to record these transactions. How much cash did Professor Quark have at the end of June?

7. Problem #2 Maria Sanchez started the Merry Mowers lawncare business. She began operations on May 1st and completed the following transactions, which included her initial investment of $8,000 cash. After these transactions, the ledger included the following accounts with normal balances.

• Cash $ 9,440     
• Office Supplies 500        
• Equipment 3,000     
• Accounts Payable 500        
• Notes Payable 2,000     
• Maria Sanchez, Capital 8,000     
• Lawncare Revenue 3,200     
• Gas and Oil Expense 210        

Required: Prepare a balance sheet and income statement for this business at the end of May.

8. Problem #3 Below are accounts listed for September for PC Partners, a company that installs/repairs home computers for customers. The business is owned by Ed Connor. The accounts are listed in alphabetical order. For the month of September, prepare an income statement and a balance sheet.

ACCOUNT BALANCE

Accounts Payable 4,200

Accounts Receivable 8,480

Advertising expense 420

Capital (Ed Connor) at 08/31/04 56,000

Cash 35,460

Entertainment Expense 600

Equipment 15,700

Installation Revenue 15,600

Miscellaneous Revenue 800

Photocopying Expense 150

Rent Expense 1,300

Repair Revenue 8,650

Supplies 8,400

Truck 8,500

Unearned Revenue 760

9. At the end of the accounting period, the business had $4,500 of office supplies on hand. At the beginning of the period, the amount of supplies on hand was $3,000. If the business purchased $12,000 of office supplies during the year, what amount of office supplies were used during year?

1. $16,500  
2. $14,250  
3. $10,500  
4. $ 9,750  
5. None of the above

10. Zach LLP wrote a check to pay an advertising bill for services for the next month. What is the entry?
    1. Debit – Loan Note Payable, Credit – Cash
    2. Debit – Cash, Credit – Account Payable
    3. Debit – Prepaid Advertising, Credit – Cash
    4. Debit – Cash, Credit – Advertising Expense

Draw a demand curve that shows an increase in price (from P1 to P1) and the corresponding change in the quantity demand (from Q1 to Q2).

Use the graph to show the initial and the final revenue. Make sure that that area indicating the revenue is, in fact, decreasing.

Add a (simple) scale to your axes and calculate the initial revenue, the loss and gain in revenue due to the price increase, and the final revenue.

The difference between economic and accounting profit is:

The role of profits in a market economy is to:

If the economic profits of a firm are above normal they are also:

The first derivative of Total Revenue is:

"In the long run, all costs are:"

Total Revenue is maximized where

Profits are maximized when:

A change in the price of a good will cause a change in that good's:

1.) Bonds payable is a(n) _________________ account.

Multiple Choice: Choose one of the following listed below

Asset, Liability, Equity, Revenue, Expense

2.) Discount on Bonds Payable is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

3.) Common Stock is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

4.) Dividends is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

5.) Premium on Bonds Payable is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

6.) Preferred Stock is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

7.) Treasury Stock is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

8.) Accounts receivable is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

9.) Cash is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

10.) Accumulated Depreciation is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

Recently, the effects from Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) have been seen in most public firms. While many firms indicated that adoption of the new revenue recognition principle had no effect upon the timing of their revenue recognition, some firms indicated the new principle had significant effects upon their statements. For the firms where the new principle affected the timing of revenue, did the new revenue recognition principle speed or slow revenue recognition. Explain.