Showing posts with label Betterment Incorporated. Show all posts
Showing posts with label Betterment Incorporated. Show all posts

Saturday, October 10, 2020

Consider the following events for Betterment Incorporated:January 1 Betterment purchases gasoline for $200 on account.

Consider the following events for Betterment Incorporated:


January 1 Betterment purchases gasoline for $200 on account.

January 7 Betterment advertises lawn mowing services for $100 per lawn.

January 9 Betterment signs up 8 customers who pay a total of $800 cash.

January 12 Betterment mows the lawns of the 8 customers and all gasoline purchased on January 1 is used.

January 13 Betterment pays for the gasoline purchased on January 1.


Under cash-basis accounting, what is the appropriate day to record the expenses related to the gasoline?


A) January 1.

B) January 9.

C) January 12.

D) January 13.


Answer: D


Consider the following events for Sophia Incorporated:


April 5 Sophia purchases volleyballs for $200 on account.

April 6 Sophia advertises a sand volleyball camp for $20 a person.

April 12 Thirty people sign up for the camp paying a total of $600.

April 21 Sophia hosts the sand volleyball camp.

April 23 Sophia pays for the volleyballs purchased on April 5.


Under accrual-basis accounting, what is the appropriate day to record the revenues from the sand volleyball camp?


A) April 5.

B) April 6.

C) April 12.

D) April 21.


Answer: D


Consider the following events for Sophia Incorporated:


April 5 Sophia purchases volleyballs for $200 on account.

April 6 Sophia advertises a sand volleyball camp for $20 a person.

April 12 Thirty people sign up for the camp paying a total of $600.

April 21 Sophia hosts the sand volleyball camp.

April 23 Sophia pays for the volleyballs purchased on April 5.


Under accrual-basis accounting, what is the appropriate day to record the expenses related to the sand volleyball camp?


A) April 5.

B) April 12.

C) April 21.

D) April 23.


Answer: C

Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated

Bull Gator Industries is considering a new assembly line costing $6,000,000. The assembly line will be fully depreciated by the simplified s...