QUESTION 23 Wise Company purchased 10 calculators for $20 each, one-half on May

Question

QUESTION 23 Wise Company purchased 10 calculators for $20 each, one-half on May 14, and the other half on May 22, all on account. Wise sold 8 of the calculators on May 25 for $30 each. It received payment for 6 of them on May 30 and payment for the other 2 on June 4. Wise paid the supplier for 5 of the calculators on May 21. Under the accrual basis of accounting, how much revenue should Wise recognize during May? O a $120 O b. $80 c. S240 O d.$180 QUESTION 24 Which one of the following is a primar function of the cash budget? O a It can identify if a company has adequate internal controls. O b. It can be used in place of a bank reconciliation. OC. It can indicate the profitability of a company O d. t can identify when a company will need additional financing.

Explanation / Answer

23.

Correct option is $240

Explanation:

Under accrual basis , revenue is recognized when it is earned, regardless when the money is actually received. In May calculators are sold@ of $30. So revenue recognized:

=8×$30

=$240

24 option d is correct

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