B6. ZM Motors (henceforth "ZM") entered into a contract with a customer, Mr Mxenge. As per the contract, ZM will deliver avehicle to Mr Mxenge on 1 March 2023. The vehicle comes with a "free" 3-year maintenance plan. The services the vehicleand replaces worn parts every six months starting on 30 September 2023. As per the contract, Mr Maitland will pay ZM aonce off amount of R800 000 on 28 February 2025.ZM sells similar vehicles a standalone price of R750 000, which is a comparable to the price charged by is competitors.ZM also sells maintenance contracts at a standalone price of R100 000. Identical maintenance plans can also be boughtfrom ZM's competitor's.A market related interest rate is 11%.True of false, ZM will recognise revenue of R635 930 on 1 March 2023?TrueFalse

The given price for the vehicle is R800,000 But the price would be paid on 28 February 2025 And the…

Answered: True of false, ZM will recognise…

Business

Accounting

True of false, ZM will recognise revenue of R635 930 on 1 March 2023?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable…

A: To increase sales there is need investment in assets and that investment can be managed internally…

Q: P12.2 (c)

A: Ending Retained Earnings = Beginning Retained Earnings + Net income - dividend declared…

Q: What is the cash impact from OWC during Year 2? If the change releases cash use a positive sign, if…

A: To calculate the change in Operating Working Capital (OWC) during Year 2, you need to consider…

Q: Identify the break-even point in the chart below: a. The yellow point b. None are the break-even…

A: The Break-even point is the level of sales at which Fixed Cost is equal to Contribution. In other…

Q: requirements

A: These are the following- 1. Such risks must be statistically predictable- This is one of the major…

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts 1. Cash Account Particular Debit Particular Credit To capital A/c…

Q: it say 7,715.47 is incorrect

A: Cash Flow = cf = $27,500Initial Cost = i = $98,000time = t = 4 YearsCost of Capital = r = 14%

Q: 8. If money is worth (.06, m = 4), find the present value of a perpetuity $1000, paid semi-annually,…

A: Present value of perpetuity is the value of an asset whose cash flow is received forever.

Q: y"+4y'+4y=D0, y(0)=0, y'(O)=1

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Answer no.26 and 27 thank you

A: Cost recovery method: In construction contracts, revenues and expenses are recognized only when the…

Q: Please answer sections d), e) and f)

A: Debt Management Ratios are financial metrics that provide insights into a company's ability to…

Q: 321,818 is incorrect. What is the correct answer?

A: Revenue: We consider unit sales and price per unit to determine total revenue.Variable Costs: Based…

Q: 1 . S u p p o s e y o u a r e c o m p a r i n g t w o f i r m s w i t h i n a n i n…

A: Since you have posted multiple questions, as per the guidelines only the first question will be…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: A) The value of A1 is 800 B) The value of A2 is 56.96 C) The Value of the Annuality 800 D)The…

A: The value will be calculated by using the following formula: Value of Annuity =Amount×(+Rate…

Q: What is the answer to part b? Is it -1245? Is the sign negative or positive?

A: The inventory valuation includes two methods named as FIFO (First in First Out) and LIFO (Last in…

Q: E11.5

A: Face value of bonds outstanding on December 31, 2020 = Total Beginning Balance of Bonds Payable -…

Q: What is the binary representation for 13 in decimal? a. 1110 b. 1111 c. 1100 d. 1101

A: Binary representation is a base 2 number system that uses two numbers 0 and 1 to represent a number.…

Q: Explanation 1031 like-kind exchange

Q: 605.53 is not the correct answer, please double check

A: Traditional Model & Expected Cash Flow Model: Traditional Approach - In the traditional…

Q: The following incomplete (columns have missing amounts) pension spreadsheet is for the current year…

A: A company's current financial needs to pay for future pension liabilities are calculated actuarially…

Q: 1.02 1.02 1.02 1.02 7T-. .T 1.0200

A: Formula for PV calculation is given below:PV= CF/(1+i)^nBelow is the question asked which is till…

Q: The answer is somewhat close. The right answer is 1.5337 Please clarify

A: Stock price is $50 Strike price is $52 Risk free rate is 1% Time period is 3 months To Find: Value…

Q: E14.3 (b)

A: The cash flow statement is helpful for the stakeholders as they can identify the organization's…

Q: 97,004 54,803

A: 97004 minus 54803

Q: Step by step

A: The formula given in the question is as shown on the whiteboard.

Q: 1,525,394 is the wrong answer. what is the correct one?

A: The recovery of net working capital (NWC) refers to the return of funds initially tied to current…

Q: explain in details the scope, obectives

A: IAS / IFRS 33 deals with the calculation and presentation of earnings per share (EPS). It applies to…

Q: rom where does 184.17 came in step 3

A: When a loan is taken then periodic payments has to be made. In this case and situation monthly…

Q: E12.17

A: Retained earnings refer to the amount earned by the organization till the date of preparation of the…

Q: 1= 2(1+g) or D1 = 2? Why?

A: Companies pay dividend to shareholder out of net income but some of earnings are retained for the…

Q: Sunland Company's balance sheet shows: Common stock, $20 par $3,200,000 Paid-in capital in excess of…

A: Treasury stocks are repurchased shares of the company. The company has the power to reissue these…

Q: What is the value of (A/P, i, N) if (P/A, i, N) = 7.7721? a. 0.1287 b. 9.7151 c. 6.9949 d: 1.0000,…

A: (P/A,i,N) is the present worth of series of payment. Formula for present worth of series of payment…

Q: E11.4

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: M&M 58 Ksl and M&M63 KSl are equal

A: M&M 58 and M&M 63 -M&M refers to Modigliani and Miller and it indicates the capital…

Q: When I type in that calculation is comes out as "0" =PMT(B2/12,B3*12,-B1)

A: PMT function is a financial function of excel. It is used to compute the periodic payment amount.…

Q: Why is a policy statement important?

A: A policy statement or an investment policy statement is a document created by the investment…

Q: HOW TO COPY FORMULA FROM RANGE B8:B11 TO RANGE C8:H11?

A: To create and copy a formula using relative references: Select the cell that will contain the…

Q: The number of statutory books maintained by all insurance companies are

A: Insurance is the contract between two parties. Whereby one party agrees to make lose into good of…

Q: Where does 4.0312, 2.9931, and 3.5431 came from? Can you explain?

A: 4.0312,2.9931 and 3.5431 are PV of annuity factors. To determine the equivalent annual saving(EAS,…

Q: what is 2 plus eight ?

A: The given sentence "2 plus eight" can be symbolically represented as 2+8. Thus, 2+8 is 10.

Q: 18 eBook References A portfolio analyst has been asked to allocate investment funds among three…

A: Portfolio return is calculated as shown below.Portfolio standard deviation is calculated as shown…

Q: What about requirement 4+5

A: Since only requirement 4 and 5 is asked I am not solving the 6th requirement.For solution one…

Q: Calculate the reciprocal latice for a1 *, a2 * and az * ā, - 48 ā, - 4ŷ and ā, = 32

A: The reciprocal lattice is defined as the set of all vectors that are wavevectors of plane waves in…

Q: it say 43,636.36 is incorrect

A: Here,Annual Incremental Cahs Inflows is $16,500Time Period is 3 yearsInterest Rate is 10%Note: As…

Q: 8 Transform 2 into an improper fraction. 10 a. 28/5 b. 5/14 c. 14/5 d. 14/10

A: An improper fraction is a fraction where the dividend is larger than the divisor.

Q: The ct of plaie ppot Agt p pdon A SIPL C S195 D. L0 E Noor of the anwers comect

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: a. The range of S is 58 while that of Pis 29 across the two states. What is the hedge ratio of the…

A: Hedge Ratio: In finance, the hedge ratio is a comparison between the value of a position protected…

Q: What is the difference between a Form 10–K and a Form 10–Q?

A: Answer:

Question

B6.

ZM Motors (henceforth "ZM") entered into a contract with a customer, Mr Mxenge. As per the contract, ZM will deliver a
vehicle to Mr Mxenge on 1 March 2023. The vehicle comes with a "free" 3-year maintenance plan. The services the vehicle
and replaces worn parts every six months starting on 30 September 2023. As per the contract, Mr Maitland will pay ZM a
once off amount of R800 000 on 28 February 2025.
ZM sells similar vehicles a standalone price of R750 000, which is a comparable to the price charged by is competitors.
ZM also sells maintenance contracts at a standalone price of R100 000. Identical maintenance plans can also be bought
from ZM's competitor's.
A market related interest rate is 11%.
True of false, ZM will recognise revenue of R635 930 on 1 March 2023?
True
False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

I asked for S5-6
Question 3: When is an employer NOT required to file a quarterly Form 941? Answer: А. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $1,000 В. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $1,500 С. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $2,500 D. When annual tax liability for federal income, Social Security, and Medicare tax is less than $100,000
Q7
How to solve:S= 1/1.06[1-1/(1.06)^20]/1-1/1.06
1 . S u p p o s e t h a t s o m e o n e s t o l e y o u r A T M c a r d a n d w i t h d r e w P 5 0 , 0 0 0 . 0 0 f r o m y o u r c h e c k i n g a c c o u n t . H o w m u c h m o n e y c o u l d y o u l o s e i f y o u r e p o r t e d t h e s t o l e n c a r d t o t h e b a n k : a ) T h e d a y t h e c a r d w a s st o l e n b ) 6 d a y s a f t e r t h e t h e f t c ) 7 5 d a y s a f t e r r e c e i v i n g y o u r p e r i o d i c s t a t e m e n t 2 . Y o u ' r e g e t t i n g m a r r i e d a n d a r e u n h a p p y w i t h y o u r p r e s e n t b a n k . D i s c u s s y o u r s t r a t e g y f o r c h o o s i n g a n e w b a n k a n d o p e n i n g a n a c c o u n t . C o n s i d e r t h e f a c t o r s t h a t a r e i m p o r t a n t t o y o u i n s e l e c t i n g a b a n k - s u c h a s t h e t y p e a n d o w n…
500,00X 500
Could you please answer question 4 and 5?
Calculate: 1 1 (1+ r)" х 30 where r=0.093, and n=16
37. Choices: a. P7,092,000, P1,110,130, and P756,130 b. P9,616,000, P1,791,610, and P1,437,610 c. P9,616,000, P1,653,370, and P756,130 d. P9,104,000, P1,653,370, and P1,299,370
How do I solve this
Hansen Corporation. a C Corporation (mot a manufacturer) reports the following items in income and expenses for 2021 Gross Revenue $900,000 Dividend Received from 30% owned Corp 200,000 LTCG 30,000 STCL 12000 City of Lee's Summit Bond Interest 10000 COGS 375000 Administrative Expenses 325000 Charitable Contribution 60,000 Compute Hansen's C Corp Taxable income?
How to do