Assume That a Firm Uses the Accrual Basis of Accounting

question 5

Short Answer

Assume that a firm uses the accrual basis of accounting.For each of the following independent cases, indicate the amount of revenue the firm recognizes for the month of August.
a. Collects $2,000 in July for merchandise to be delivered in August.
b. Collects $1,200 in May for subscriptions that will be delivered during the next twelve months (beginning in May).
c. Collects $800 in August for merchandise sold and delivered in July.
d. Collects $2,400 interest on a 6-month certificate of deposit, which matures on August 15th.
e. Sells $3,000 of merchandise on account in August. The firm allows a 2% discount for payment prior to 30 days and customers take the discount.

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Definitions:

Monitor Others' Behaviour

The act of observing and analyzing the actions and behavior of individuals to gather data, ensure compliance, or influence outcomes.

Moral Leadership

Leadership that is governed by respect for ethical beliefs and values and for the dignity and rights of others.

Ethically

Acting in a manner that is morally right or acceptable, often guided by personal, societal, or professional standards of conduct.

Capabilities

The skills, resources, and competencies that enable an organization or individual to perform effectively.