Answer:
A. A performance must always sell tickets
Explanation:
The sale of tickets is the primary source of revenue for performances. This is the true measure of how well the intended audience connects with the director/producer/actors/actresses of the performance
Other sources of revenue are often used but these are secondary
Answer:
TRUE
Explanation:
In managerial accounting, there are 2 meanings and significance of a relevant range.
1. The relevant range is the level of activity (range) that a firm is operating i.e. the volume of its production activity.
2. The relevant range is the level of activity within which certain cost behaviors are true i.e. whether the costs by their characteristics are fixed or variable.
Beyond a relevant range, cost behaviors could change in 2 ways
1. Variable costs could start manifesting the characteristic of semi variable costs or mixed costs or
2. Fixed costs could become stepped and become stepped fixed costs.
Therefore cost estimations which is based on cost behavior are only VALID within the relevant range. It is only within a given level of output that certain cost estimations holds true.
Answer:
A. $42.67
Explanation:
1. "Markup" is defined as the amount by which the selling price of an item is increased above its cost to the retailer. (Source: BusinessDictionary.com)
2. The formula for calculating markup is: markup = (selling price - cost) / cost. (Source: Investopedia)
3. To find the cost of an item to the retailer, we can use the formula: cost = selling price / (1 + markup). (Source: Khan Academy)
Now, let's work through the problem using these formulas:
1. First, we know that the original price of the hand-held music player was $66.00.
2. Next, we know that the item was marked up by 1/2 before it was placed on the sales floor. This means that the markup is 1/2, or 50%.
3. To find the cost of the item to the retailer, we can use the formula: cost = selling price / (1 + markup). In this case, the selling price is $66.00, and the markup is 50%, so:
cost = $66.00 / (1 + 0.5)
= $66.00 / 1.5
= $42.67
b. As a conditional promise to give of $10,000.
c. As temporarily restricted support of the present value of $10,000.
d. As temporarily restricted support of $10,000.
Answer:
a. It should not be accounted for until it is received.
Explanation:
When a donor make a promise to make a donation of certain amount of money to a not-profit-organization, the amount is referred to as a pledge.
There are two important variations of a pledge depending on the conditions attached to it. These variations have to be considered when the pledge is being accounted for. The following are the two variations:
1. Unconditional pledge: This occurs when a pledge is committed to by a donor without any reservation. In this case, the funds will be recorded as revenue and an account receivable by the not-for-profit organisation that is receiving it.
2. Conditional pledge: This occurs when a pledge is committed to by a donor but with a condition to be met attached to it. That is, the donor promises the organisation certain amount of money contingent upon some future event. In this case, the not-for-profit organisation will not record anything. The organisation has to wait until the condition is met. When the condition is eventually met, the pledge will then be recorded as revenue and an account receivable.
The answer:
Since a pledge of $10,000 received by the League has a condition attached to it that the donation will not be received for three years, that is, it will not be received until after three years, the pledge is considered as a conditional pledge. Therefore, the League will not record anything until after it receives the pledge.
Therefore, the Cats and Dogs League should not be accounted for until it is received.
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