Business, 05.05.2020 08:05 glowbaby123
In its first year of operations, Sheridan Company recognized $31,000 in service revenue, $7,700 of which was on account and still outstanding at year-end. The remaining $23,300 was received in cash from customers.
The company incurred operating expenses of $20,100. Of these expenses, $13,090 were paid in cash; $7,010 was still owed on account at year-end. In addition, Sheridan prepaid $2,950 for insurance coverage that would not be used until the second year of operations.
Required:
a. Calculate the first year’s net earnings under the cash basis of accounting, and accrual basis of accounting.
b. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 18:20, winterblanco
Saeed needs money to purchase tools, basic office supplies, parts to refurbish equipment, accounting software, and legal fees. believing saeed's business will be a success, an investor invests $5,000 to saeed open his business. in return, saeed agrees to repay the investor the $5,000 plus 17 percent of the profits of the business. calculate the return on investment for the investor if saeed's business makes $7,000 in profit as a total return of the business in its first year.
Answers: 1
Business, 22.06.2019 05:20, naomicervero
Social computing forces companies to deal with customers as opposed to
Answers: 2
Business, 22.06.2019 20:20, lllmmmaaaooo
Trade will take place: a. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. b. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. c. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. d. none of the above.
Answers: 3
Business, 22.06.2019 22:50, tiffanibell71
Adding a complementary product to what is currently being produced is a demand management strategy used when: a. capacity exceeds demand for a product that has stable demand. b. price increases have failed to bring about demand management. c. demand exceeds capacity. d. demand exceeds 100 percent. e. the existing product has seasonal or cyclical demand.
Answers: 3
You know the right answer?
In its first year of operations, Sheridan Company recognized $31,000 in service revenue, $7,700 of w...
Questions in other subjects:
Mathematics, 28.01.2021 18:50
Geography, 28.01.2021 18:50
Arts, 28.01.2021 18:50
French, 28.01.2021 18:50
