1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
antoniya [11.8K]
2 years ago
12

When accounting for a long-term construction contract under IFRS, if the percentage-of-completion method is not appropriate, the

seller should account for revenue using:
Business
1 answer:
IRISSAK [1]2 years ago
8 0

When accounting for a long-term construction contract under IFRS, if the percentage-of-completion method is not appropriate, the seller should account for revenue using "cost recovery method".

<h3>What is cost recovery method?</h3>

According to the "Cost Recovery Rule," any excess cash value (cost basis) over premium payments that results from a partial withdrawal of cash or a policy surrender is taxable income.

Calculation for cost recovery method includes:

  • the product's operating expenses, such as those for hardware, software, and labour, should all be added up.
  • Analyse whole revenue, regardless of whether a client made a lump-sum payment or several instalments.
  • To calculate the profit, deduct the cost of products from whole sales.

To know more about the lump-sum payment, here

brainly.com/question/23220127

#SPJ4

You might be interested in
What accounting method should hariette choose when she runs the profit and loss report?
Zinaida [17]

Hariette should choose cash basis of accounting when she runs the profit and loss report. A company's reporting guidelines and practices for revenues and expenses make up its accounting method. Cash accounting and accrual accounting are the two primary accounting techniques.

Revenues and costs are recorded in cash accounting when they are received and paid. There are three different accounting methods: modified cash basis, cash basis, and accrual basis. Let's briefly review the fundamentals before we discuss which types of firms use certain accounting techniques.

If you only consider popularity, accrual accounting comes out on top since it is both the most popular and the most accurate techniques.

To learn more about accounting, click here.

brainly.com/question/13310721

#SPJ4

4 0
2 years ago
Buffalo National Corp. (BNC) is currently an all-equity firm worth $320 million with 50 million common shares outstanding. BNC p
balu736 [363]

Answer:

The solution as per the given problem is provided below throughout the explanation portion below.

Explanation:

The given values are:

Debt issued,

= 120

Pretax earnings,

= 80

Tax,

= 35%

All equity firm,

= $320

Number of common stock,

= 50

(a)

Balance sheet before the debt issue's announcement will be:

<u>Assets </u><u>                                 320</u>

<u>Debt   </u><u>                                    0</u>

<u>Equity  </u><u>                                 320</u>

then,

The total will be "320".

(b)

The per share price will be:

= \frac{Equity}{Number \ of \ common \ stock}

= \frac{320}{50}

= 6.40

or,

After tax, the net income will be:

= EBIT(1-t)

= 80(1-0.35)

= 80\times 0.65

= 52

(c)

The return on equity will be:

= \frac{Net \ income \ after \ taxes}{Value \ of \ equity}

= \frac{52}{320}

= 0.1625

or,

= 16.25 (%)

5 0
3 years ago
Which of the following best describes a push strategy? Group of answer choices Manufacturer builds strong consumer demand for a
maksim [4K]

Answer: Manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

Explanation:

In a push strategy the manufacturer develops mutual effort and cooperation in the development and implementation of promotional strategies by working directly with members to develop strong and viable promotional support.

In a push strategy, the firm takes it's products to the consumer. The aim of this is for the product to gain much exposure than it already has and attract more sales. Other sales channels are bypassed in the scenario, leaving just the producer and the customer. Advertisment is one of the greatest promotional tool for push strategy.

6 0
3 years ago
For halloween debby and her sister combined the candy they received. debby had thirty-two pieces of candy while her sister had f
Alinara [238K]
They girls would have 39 peices left. You would add 42+32=74-35=39 peices left
5 0
3 years ago
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management December 2011 of a circuit fla
ANTONII [103]

Answer:

1. Accrued

2. $2 Million

3. $2 Million

4. Dr Loss product recall (Expense) $2 Million

Cr Liability product recall (Liability) $2 Million

Explanation:

1. Yes, Based on the information given this loss contingency should be accrued reason been that all the necessary requirement are met and secondly the loss is tend to be probably and lastly the said amount can be estimated which is why the recorded liability is accrued.

2. The loss that Sound Audio should report in its 2011 income statement is $2 Million

3. The liability that Sound Audio should report in its 2011 balance sheet would also be $2 Million

4.Preparation of any journal entry needed

Dr Loss product recall (Expense) $2 Million

Cr Liability product recall (Liability) $2 Million

5 0
3 years ago
Other questions:
  • Say a certain manufacturing industry has 63.1 thousand jobs in 2008, but is expected to decline at an average annual rate of 1.7
    8·2 answers
  • Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance
    7·1 answer
  • The percentage of the original loan amount that is paid in interest is called the:
    7·1 answer
  • Which type of business orientation offers the same basic product to all customers?
    6·1 answer
  • For a survey, a company decided to call 7 out of every 5000 people. how many people should be called in a town of 78000 people?
    8·1 answer
  • What is the smallest level at which life may exist
    11·1 answer
  • The money spent by firms in order to produce and sells their goods and services is called
    11·1 answer
  • According to your text, the best means of using direct foreign investment to attract new sources of demand is probably to
    9·1 answer
  • The artistic recycling of existing images is an aspect of:
    10·1 answer
  • A company's current assets are $26,420, its quick assets are $15,090 and its current liabilities are $12,520. Its acid-test rati
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!