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NEW QUESTION: 1
A company provides fertilization, insect control, and disease control services for a variety of trees, plants, and shrubs on contract basis. For US $50 per month, the company will visit the subscriber's premises and apply appropriate. If the subscriber has any problem between the regularity scheduled application dates, the company's personal will promptly make additional service calls to correct the situation. Some subscribers elect to pay for an entire year because the company offers an annual price of 115 $540 if paid in advance. For a subscriber who pays the annual fee in advance, the company should recognize the related revenue.
A. When the cash is collected.
B. Evenly over the year as the services are performed.
C. At the end of the contract year after all of the services have been performed.
D. At the end of the fiscal year.
Answer: B
Explanation:
Income, which includes revenue and gains, should not be recognized until an increase in future economic benefits related to an increase in an asset or a decrease in a liability is sufficiently certain and can be measure I reliably. I-he most common time at which these two conditions are met is when the product or merchandise is delivered services are rendered to customers. In the situation presented the performance of the service monthly spraying) is so significant to creating a sufficient certainty of an increase in future economic benefits that revenue should not be recognized until delivery occurs.

NEW QUESTION: 2
Which one of the following does not apply when the historical cost convention is being followed?
A. Non-current assets should be depreciated over their estimated useful life
B. All assets should be valued at their historical cost
C. Inventory should be valued at the lower of cost and net realizable value
D. Non-purchased goodwill should not be capitalized
Answer: B

NEW QUESTION: 3
How can you perform a complete back up of an SAP HANA database system?
Please choose the correct answer.
Response:
A. Backup the complete storage system.
B. Back up the system database and all tenant databases individually.
C. Back up the system database and all tenant databases in one step.
D. Back up the complete database system.
Answer: B