Question: During 20X6, Dish Network, Inc., which designs network servers, earned revenues of $700 million. Expenses totaled $540 million. Dish collected all but $20 million of

During 20X6, Dish Network, Inc., which designs network servers, earned revenues of $700 million. Expenses totaled $540 million. Dish collected all but $20 million of the revenues and paid $550 million on its expenses. Dish's top managers are evaluating 20X6, and they ask you the following questions:

a. Under accrual accounting, what amount of revenue should Dish Network report for 20X6? Is the revenue the $700 million earned or is it the amount of cash actually collected? How does the revenue principle help to answer these questions?

b. Under accrual accounting, what amount of total expense should Dish Network report for 20X6-$540 million or $550 million? Which accounting principle helps to answer this question?

c. Which financial statement reports revenues and expenses? Which statement reports cash receipts and cash payments?

Step by Step Solution

★★★★★

3.39 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Dish Network should report revenue of 700 million for 20X... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

988-B-A-G-F-A (9535).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

During 2010, Carson Network, Inc., which designs network servers, earned revenues of $800 million. Expenses totaled $590 million. Carson collected all but $28 million of the revenues and paid $610...

During 2010 Carlton Network, Inc., which designs network servers, earned revenues of $740 million. Expenses totaled $560 million. Carlton collected all but $24 million of the revenues and paid $580...

During 2012, Barron Network, Inc., which designs network servers, earned revenues of $840 million. Expenses totaled $500 million. Barron collected all but $26 million of the revenues and paid $580...

(Learning Objectives 1, 2: Using the accrual basis of accounting; applying accounting principles) During 20X6 Carlton Network, Inc., which designs network servers, earned revenues of 740 million....

During 2012, Gibson Network, Inc., which designs network servers, earned revenues of $780 million. Expenses totaled $530 million. Gibson collected all but $25 million of the revenues and paid $560...

During 2021, Able Network, Inc., which designs network servers, earned revenues of $820 million. Expenses totaled $520 million. Able collected all but $20 million of the revenues and paid $610...

During 2018, Able Network, Inc., which designs network servers, earned revenues of $820 million. Expenses totaled $520 million. Able collected all but $20 million of the revenues and paid $610...

During 2014, Boyd Network, Inc., which designs network servers, earned revenues of $730 million. Expenses totaled $410 million. Boyd collected all but $26 million of the revenues and paid $425...

During 2021, Barron Network, Inc., which designs network servers, earned revenues of $740 million. Expenses totaled $560 million. Barron collected all but $26 million of the revenues and paid $610...

E3-18A. (Learning Objectives 1, 2: Explain how accrual accounting differs from cash-basis accounting; apply the revenue and expense recognition principles) During 2018, Able Network, Inc., which...

1. The use of computer systems has increased the potential for management supervision of the internal control system. True False 2. The computer has simplified auditing by providing a better audit...

A managerial employee has the following benefits: 13th month pay and other benefits - P50,000; De minimis within their limits - P30,000, Excess de minimis benefits P6,000; Other fringe benefits -...

e) Nadia believes that her Old Age Security (OAS) pension will be subject to clawback. She is trying to understand what this means. The maximum gross annual OAS pension in 2025 is $8,732. Nadia's net...

Long Recoveries. Explain why the time it takes the economy to recover to the level where it originally was when the recession started is longer than the time from peak to trough. (Related to...

The Cash account of Randell Corp. reported a balance of $2,400 at October 31. Included were outstanding checks totaling $500 and an October 31 deposit of $200 that did not appear on the bank...

After preparing Randell Corp.s bank reconciliation in Short Exercise make the companys journal entries for transactions that arise from the bank reconciliation. Date each transaction October 31, and...

Barbara Smith manages Jones Advertising. Smith fears that a trusted employee has been stealing from the company. This employee receives cash from clients and also prepares the monthly bank...

At Desi's Dessert Destination, the probability that a customer orders coffee is 0.61, the probability that a customer orders pie is 0.33, and the probability that a customer orders both coffee and...

Need assistance with java files for final project: collection manager. I just had cancer surgery and my final project suffered because of it. Is there anyone who would be willing to provide me the...

Five members of the Mutual Admiration Club and five members of the Pay It Forward Club had a competition to see which team, on average, could stare into another club member's eyes the longest. Their...