Revenue recognition principle: In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue. Expense recognition principle: The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized. To determine: The expenses to be deducted from the revenue.

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Answer 1

Question

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

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Kendrick Industries provided the following financial data: ⚫ Net Income = $30,120 Assets at the Beginning of the Year = $220,000 Assets at the End of the Year = $270,000 Find the return on assets (ROA) in percentage.

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Answer 2

Question

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

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Answer 3

Question

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

Answer 6

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

Answer 7

Chapter 4, Problem 4Q

To determine

Revenue recognition principle:

In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.

Expense recognition principle:

The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.

To determine: The expenses to be deducted from the revenue.

Answer 8

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Answer 9

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Answer 10

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Answer 11

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