Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
Question
Book Icon
Chapter 4, Problem 14Q
To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Determine whether the company met its target of revenue and net income by issuing a gift card.

Blurred answer
Students have asked these similar questions
Totally Tanked, Inc. sells tank tops.  The firm is considering making some changes in order to achieve its goal of increasing its profit.  If it makes no changes, the company anticipates the following for the coming year. Maria, one of the company’s managers suggests the following:  “I think if we cut our price to $17 a tank top, we will increase our sales to 3,700,000 tank tops.   I think that will help us achieve our goal” Question: If the company wants to have income from operations of $22,000,000 AND it does NOT implement Maria’s plan, how many tank tops does it need to sell? How much profit will the company make at its breakeven point? (show work) # of tank tops to be sold                               3,000,000 Selling price per tank top                                    $20 Variable expense per tank top                          $8 Fixed expenses for the year                        $20,000,000 Maria, one of the company’s managers suggests the following:  “I think if we cut our…
Totally Tanked, Inc. sells tank tops. The firm is considering making some changes in order to achieve its goal of increasing its profit.If it makes no changes, the company anticipates the following for the coming year. Maria, one of the company’s managers suggests the following:  “I think if we cut our price to $17 a tank top, we will increase our sales to 3,700,000 tank tops.   I think that will help us achieve our goal” Question: Mr. Big, the CEO, upon hearing Maria’s plan says “This is great!  We should go forward with your plan since we will increase sales by 700,000 tank tops.”  How would you answer Mr. Big?   # of tank tops to be sold                               3,000,000 Selling price per tank top                                    $20 Variable expense per tank top                          $8 Fixed expenses for the year                        $20,000,000
ABC Distributing Company sells small appliances to hardware stores. The President of the Company thinking about changing the credit policies offered by the firm to attract customers away from competitors. The current policy calls for a 1/10, net 30, and the new policy would call for a 3/10, net 50. Currently 40% of the customers are taking the discount, and it is anticipated that this number would go up to 50% with the new discount policy. It is further anticipated that annual sales would increase from a level of $200,000 to $250,000 because of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Company is based on a determination of an EOQ. Assume unit sales of small appliances will increase from 20,000 to 25,000 unit. The ordering cost for each is $100 and the carrying cost is based on EOQ/2. Each unit in inventory has an average cost of $6.50. CoGS is equal to 65% of net sales; general and adm. expenses…

Chapter 4 Solutions

Financial Accounting: Tools for Business Decision Making, 8th Edition

Ch. 4 - Prob. 11QCh. 4 - What types of accounts are debited and credited in...Ch. 4 - Prob. 13QCh. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - A company fails to recognize an expense incurred...Ch. 4 - A company makes an accrued revenue adjusting entry...Ch. 4 - Prob. 18QCh. 4 - For each of the following items before adjustment,...Ch. 4 - One-half of the adjusting entry is given below....Ch. 4 - Prob. 21QCh. 4 - Prob. 22QCh. 4 - Prob. 23QCh. 4 - (a) What information do accrual-basis financial...Ch. 4 - What is the relationship, if any, between the...Ch. 4 - Identify the account(s) debited and credited in...Ch. 4 - Prob. 27QCh. 4 - Prob. 28QCh. 4 - What items are disclosed on a post-closing trial...Ch. 4 - Prob. 30QCh. 4 - Indicate, in the sequence in which they are made,...Ch. 4 - Identify, in the sequence in which they are...Ch. 4 - Prob. 33QCh. 4 - Prob. 34QCh. 4 - Prob. 35QCh. 4 - Prob. 36QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Prob. 4.13BECh. 4 - Prob. 4.14BECh. 4 - The required steps in the accounting cycle are...Ch. 4 - Prob. 4.1DIECh. 4 - Prob. 4.2DIECh. 4 - Prob. 4.3DIECh. 4 - Prob. 4.4ADIECh. 4 - Prob. 4.4BDIECh. 4 - The following independent situations require...Ch. 4 - These accounting concepts were discussed in this...Ch. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10ECh. 4 - Prob. 4.11ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.2APCh. 4 - Prob. 4.3APCh. 4 - Prob. 4.4APCh. 4 - Prob. 4.5APCh. 4 - Prob. 4.6APCh. 4 - Prob. 4.7APCh. 4 - Prob. 4.1CACRCh. 4 - Prob. 4.2CACRCh. 4 - Prob. 4.3CACRCh. 4 - Prob. 4.4CACRCh. 4 - Prob. 4.1EYCTCh. 4 - Prob. 4.2EYCTCh. 4 - Prob. 4.3EYCTCh. 4 - Prob. 4.4EYCTCh. 4 - Prob. 4.6EYCTCh. 4 - Prob. 4.7EYCTCh. 4 - Prob. 4.8EYCTCh. 4 - Companies prepare balance sheets in order to know...Ch. 4 - Prob. 4.1IFRS
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Text book image
International Financial Management
Finance
ISBN:9780357130698
Author:Madura
Publisher:Cengage
Text book image
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Text book image
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning