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Andy Archer, Ph.D., is a training consultant for six mid-sized manufacturing firms. On the average, each of his six clients calls him for consulting assistance once every 25 days. Andy typically spends an average of five days at the client's firm during each consultation.
Assuming that the time between client calls follows an exponential distribution, determine the following:
a.the average number of clients Andy has on backlog
b.the average time a client must wait before Andy arrives to it
c.the proportion of the time Andy is busy
Reporting Revenue
Reporting revenue involves the recognition and recording of income generated from the sales of goods or services in the financial statements of a corporation.
Deferred Revenue
Income received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet until earned.
Accrued Revenue
Revenue that has been earned but not yet received in cash or recorded by the accounting system.
Adjusting
The process of making entries in the accounting records at the end of an accounting period to account for items that were not fully recorded.
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