Business, 13.07.2020 22:01, quan1541

In October of the current year, received a $15,520 payment from a client for 32 months of security services she will provide starting on September 1 of this year. This amounts to $485 per month. Janine is a calendar-year taxpayer. a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?

1. Year 1
2. Year 2
3. Year 0
4. Year 1 and year 2
5. Year 0 and year 1

b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?

1. Year 0 and Year 1
2. Year 0
3. Year 1
4. Year 1 and Year 2
5. Year 2

c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.

1. Year 2
2. Year 1
3. Year 0
4. Year 0 and year 1
5. Year 1 and year 2

d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?

1. Year 1
2. Year 1 and year 2
3. Year 2
4. Year 0 and year 1
5. Year 0

Answers: 1

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a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?

3. Year 0

Cash method of accounting recognizes revenues and expenses when they are received or paid for.

b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?

1. Year 0 and Year 1

c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.

1. Year 2

She will recognize revenue only after the merchandise is delivered.

d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?

5. Year 0

Under this system, advanced payments are considered revenue on the year that they were received.

answered: Guest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

answered: Guest

answer; no individual buyer or seller has any significant impact on the market price;

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In October of the current year, received a $15,520 payment from a client for 32 months of security s...