During November 2017,Asler,Inc

question 113

Multiple Choice

During November 2017,Asler,Inc.,performs consulting services.The client does not pay Asler until January 2018.

• A)Using the accrual basis of accounting,the revenue is reported in January 2018
• B)Using the cash basis of accounting,the revenue is reported in November 2017.
• C)Using the accrual basis of accounting,the revenue is reported in November 2017.
• D)Using the accrual basis of accounting,the revenue is reported when Asler's expenses are paid.

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Definitions:

Departmental Predetermined Overhead Rates

A method of calculating overhead rates for specific departments within a company, rather than using a single overhead rate for the entire organization.

Machine-Hours

A measure of production output or operational time, calculated by the number of hours a machine is run during a specific period.

Markup

A pricing strategy where a seller adds to the cost of the goods to determine the selling price, aimed at ensuring a profit margin above cost.

Selling Prices

The actual amount that a customer pays for a product or service, which can include discounts, promotions, and taxes.