User Account

All Pages

Explain which gaap principle applies to the scenario

Assignment Help Accounting Basics
Reference no: EM132764693

Question: The famous singer Rihanna is going on a tour. She plans to perform at a concert on Sept 30th. Her agent is handling her financial transactions and recorded $400,000 cash that was received in June, as revenue. This cash is related to the September 30th ticket sales. As of July 1, Rihanna's accountant noticed that the financial statements reflect all of the revenue from the June ticket sales, a concert yet to be held. The accountant has these questions for the manager:

• Which accounting method was used? Explain why you believe this method was used.

• Did the agent correctly record the transaction under GAAP? Why or why not?

• Explain which GAAP principle applies to this scenario.

Reference no: EM132764693

Questions Cloud

Prepare journal entry to record their issuance by instaform : On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $55 million, dated January 1. The bonds mature in 2040 (20 years).
What the notes to the financial statements are : Explain what the Notes to the Financial Statements are and identify and explain at least three items that are typically included in the notes.
What is the maximum amount she may contribute : Victoria Perez (18) will be claimed as a dependent on her parents' 2019 tax return. During the year, she earned $1,575 in wages from a part-time job and $100.
What is the weighted average number of shares : A company has 10,000 shares outstanding from 1/1 to 3/31, and 14,000 shares outstanding from 4/1 to 12/31. What is the weighted average number of shares used.
Explain which gaap principle applies to the scenario : The famous singer Rihanna is going on a tour. She plans to perform at a concert on Sept 30th. Her agent is handling her financial transactions and recorded.
Calculate the average unit cost : In its first month of operations, Weatherall Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7.
What is the basic market forces : What is the basic market forces that are relevant to pricing and decision-making for companies? What information would you want to have in order to make sound.
What revenue and expense does pittston report : Pittston County has an empty school building with a net book value of $700,000 and a remaining life of 10 years with no expected residual value.
At what production level would x company be indifferent : X Company currently makes 2,700 units of a unique part for one of its finished products . Variable production costs for this part are $ 13.93 per unit.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cirrus inc purchased certain plant assets under a deferred

cirrus inc. purchased certain plant assets under a deferred payment contract. the agreement was to pay 40000 per for

  Prepare a retained earnings statement for the year

Prepare a retained earnings statement for the year - Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions.

  What was the balance in branson cos cash account

branson co. received its bankstatement for the month ending may 31 2009 and reconciled the statement balance to the may

  What are internal controls and why are they needed

What are internal controls and why are they needed? What aspect(s) of the Sarbanes-Oxley Act of 2002 might reduce opportunities for fraud?

  How should the payment in excess of the fair value

Morgan transfers consideration more than the company's net assets. How should the payment in excess of the fair value be accounted

  What will be the short run impact on income

Switze Corporation makes motorcycle engines. If Switzer accept the offer, what will be the short run impact on income

  Analysis of the us government budget deficit and net cost

analysis of the u.s. government budget deficit and net cost of operations. access the most recent financial report of

  Compute the present value of the cash flows for vendor A

Assuming that both Vendors A and B will be able to perform the required year-end maintenance, Compute the present value of the cash flows for vendor A

  Briefly explain why you chose each individual

Identify four types of specialists that you would assemble to provide information to help set the materials price and quantity standards. Briefly explain why you chose each individual

  What are windcharters current assets current liabilities

from the following accounts prepare a balance sheet for the windcharter company for the year ending december 31 2013

  Determine the number of new customer accounts

Question - Break-Even Analysis - Determine the number of new customer accounts needed to break even on the cost of the promotional campaign

  Describing initial public offering for global firm

Write a 750 to 1,000 word paper describing an initial public offering for a global firm which we are picking "Facebook".

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd