uring 2018, Evensen Network, Inc., which designs network servers, earned revenues of $900 million. Expenses totaled $580 million. Evensen collected all but $29 million of the revenues and paid $590 million on its expenses. Read the requirements LOADING... . Requirement a. Under accrual accounting, what amount of revenue should Evensen report for 2018? How does the revenue principle help to answer this question? The amount of revenue that should be reported for the year is $ 900 million. How does the revenue principle help to answer this question? The revenue principle says to record revenue when it has been (collected, earned, recorded), regardless of when (cash is collected, revenue is earned, sold inventory is delivered). Therefore, the amount of revenue reported is what Evensen (collected, earned ,paid).
uring 2018, Evensen Network, Inc., which designs network servers, earned revenues of $900 million. Expenses totaled $580 million. Evensen collected all but $29 million of the revenues and paid $590 million on its expenses. Read the requirements LOADING... . Requirement a. Under accrual accounting, what amount of revenue should Evensen report for 2018? How does the revenue principle help to answer this question? The amount of revenue that should be reported for the year is $ 900 million. How does the revenue principle help to answer this question? The revenue principle says to record revenue when it has been (collected, earned, recorded), regardless of when (cash is collected, revenue is earned, sold inventory is delivered). Therefore, the amount of revenue reported is what Evensen (collected, earned ,paid).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
During
2018,
Evensen
Network, Inc., which designs network servers, earned revenues of
$900
million. Expenses totaled
$580 million.
Evensen
collected all but
$29
million of the revenues and paid
$590
million on its expenses.Read the
requirements
LOADING...
.Requirement a. Under accrual accounting, what amount of revenue should
Evensen
report for
2018?
How does the revenue principle help to answer this question?|
The amount of revenue that should be reported for the year is $
|
900
|
million.
|
How does the revenue principle help to answer this question?
The revenue principle says to record revenue when it has been (collected, earned, recorded), regardless of when (cash is collected, revenue is earned, sold inventory is delivered).
Therefore, the amount of revenue reported is what
Therefore, the amount of revenue reported is what
Evensen (collected, earned ,paid).
()= blank. inside are the word choices
Expert Solution
Step 1
Accrual concept- it states that revenue and expenses are recognized in the period in which the transactions are entered into rather than when they are received or paid. It is a key concept because in this method transactions are recorded and affect on the assets, liabilities, income, and expenses only when transactions related to them are entered into.
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