JANE creates a franchise for the sale of a particular product. JANE incurs P600,000 initial direct costs for each franchise granted. At December 31, 20x6, JANE granted the following people franchises that have open accounts with JANE. ANNA BETY CHERRY DANA Cash paid (down payment) Note unpaid (face P1,000,000) Services completed Probability of collection 200,000 200,000 200,000 200,000 550,000 700,000 400,000 910,000 25% 10% 95% 100% Likely Unlikely Unlikely Likely Continuing franchise fee Period of refund 1% of NI 1% of NI 1% of NI 1% of NI 1/31/2017 2/28/2017 12/30/2016 12/30/2016 What is the total revenue to be recognized by JANE on December 31, 20x6?

Q: Explain the political cost hypothesis of Positive Accounting Theory.

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: distinguish between conservative and aggressive accounting;

A: Accounting is the process through which financial statement are recorded, analyzed, summarized and…

Q: What data points are necessary for developing an accurate financial statement? Define the terms

A: Financial statements are formal records of a company's financial activities and performance over a…

Q: An objective of financial reporting is

A: Financial reporting uses financial statements to disclose financial data that indicates the…

Q: Discuss the relationship of accounting information with the Efficient Market Hypothesis (EMH)

A: Accounting information is a wider term, it includes all financial information of the firm. It is…

Q: How does customer Satisfaction relate to management accounting? Give a practical example.

A: Customer satisfaction and management accounting are intrinsically connected in the corporate sector.…

Q: What is the primary purpose of a cost center? A) To generate revenue B) To control cost C) To manage…

A: In a centralized environment, control moves from task control to results control. In a task control…

Q: Describe the decision making process in management accounting.

A: The decision-making process includes a series of steps which are followed in making a decision for…

Q: Explain the objectives of financial reporting.

A: Financial reporting: Financial reporting is the procedure used to communicate the information…

Q: Analyze the disadvantages of financial performance measures and the advantages of non

A: Disadvantages of financial performance measures  1 They indicates short term performance measures. 2…

Q: Explain how to encourage high quality of financial reporting.

A: High quality of financial reporting is an amalgamation of many factors which involve financial…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is