Answer:
A web streaming company fulfills a 12-month service term paid by customers in advance.
Explanation:
Revenue is recognized from services rendered or goods delivered. It is recognized only when the risk and reward is transferred, further it relates to the normal business of company.
As in the first sentence the company makes scientific devices and it sales an agricultural land, that is sale of fixed asset.
In second case the pharmaceutical company receives donation which is anonymous.
All the things are not revenue for company.
It is only the web streaming company which shall recognize revenue as the services are rendered and revenue shall be recognized related to normal business of company.
Answer:
A.Incorrect
B. Incorrect
Explanation:
a) A manager might reject a proposal using ROI that the manager would accept using residual income
The statement is incorrect. The reverse is true. Using ROI entails the manager comparing the ROI after a project to the ROI before, where implementing a project makes the ROI after to be less than what it before the project, the Manager would most likely not implement the project. This would happen notwithstanding that the project produces positive residual income.
b) Managers will be more likely to pursue projects that will benefit the entire company when being evaluated on ROI instead of residual income.
This statement is incorrect. ROI makes the manager to pursue his own interest and that of its division at the expense of the group objectives. It leads to sub-optimal decision
100000 X 19% = 19000
100000 X 7% = 7000
<em>Total deduction: $26,000</em>
$74,000 per year he will get after deduction
Answer:
2%
2.5%
1.67%
Explanation:
The yield can be computed using the yield formula which coupon payment divided by price.
The coupon payment=face value*coupon rate
face value is $1000
coupon rate is 2%
coupon payment=2%*$1000=$20
when price is $1000:
yield =$20/$1000=2%
when price is $800
yield=$20/$800=2.5%
when price is $1,200
yield =$20/$1,200=1.67%
In essence ,the lower the price the higher the yield as lower amount is invested in order to receive the same amount of annual coupon of $20
