Accounting

For the Week 2 Critical Thinking Exercise, you will read the following paragraph and answer the corresponding questions. Mandy Moore Dance Studio wishes to expand her dance studio and the bank has loaned her $100,000. The bank requires the business to maintain a current ratio of no less than 1.50. The expansion of the dance studio has been solid but not as well as expected. Due to the expansion, the current ratio is 1.40 as of December 15". In reviewing the books, there is a contract for $10,000 which was signed on December 50, but the dance studio will not earn the money until January. In order to raise the current ratio, Mary is thinking of recording this as revenue in December. 1. By recording the revenue in December, determine the accounting principle that would dictate when the revenue should be recognized 2. Identify the standard the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (JASB) have issued and how it pertains to this situation. Task 1: Create a new discussion topic on or before Friday at 11:55 p.m. by clicking the " REPLY HERE* post. In your reply, you will post your answers to the Week 2 Critical Thinking Exercise questions. Your response to the exercise questions should be a minimum of 150 words. Going over the minimum word length requirement is acceptable; however, I am not looking for 1000- words! It is suggested that you use MS Word or another word processing application that can check spelling/grammar and can show the word count. Task 2: After you have created your new discussion topic, you are required to read and respond to a minimum of 2 of your classmates' discussion topics. Each of your responses should be a minimum of 50 words. Think of your responses in terms of a contribution to a dialogue, not a writing chat room Elaborate a single idea and keen