User Account

All Pages

Explain which GAAP principle applies to this scenario

Assignment Help Accounting Basics
Reference no: EM132752484

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: EM132752484

Questions Cloud

Describe the demand on jameel : Assume: Tax rate is 20%, the required rate of return is 10%, What are the fixed costs? What are the variable costs? Describe the demand on Jameel's
Why do some organizations use variable costing : When might the contribution margin per unit of constraint be more effective than the contribution margin per unit for making decisions?
Record the journal entry for depreciation expense : Record the journal entry for depreciation expense on December 31, 2019 and December 31, 2020 under 1) activity, 2) straight line, 3) sum-of-years' digits
Describe the assumptions made to simplify the cost-volume : What is sensitivity analysis and how might it help those performing cost-volume-profit analysis? Describe the assumptions made to simplify the cost-volume
Explain which GAAP principle applies to this scenario : Did the agent correctly record the transaction under GAAP? Why or why not? Explain which GAAP principle applies to this scenario
How does the break-even point equation change for a company : How does the break-even point equation change for a company with multiple products or services compared to a single-product company?
Calculate the break-even point or target profit : You are asked to find the target profit in units and in sales dollars. What does mean? Distinguish between contribution margin per unit and contribution ratio?
Describe the components of the profit equation : What is the difference between a variable cost and a fixed cost? Provide examples of each. You are asked to find the break-even point in units.
Find the yield an investor would realize : Find the yield an investor would realize if coupon payments were reinvested at 10 percent. Preston Corporation has a bond outstanding with a $80 annual interest

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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