What is the difference between capital gain and capital loss?

Boomerang Computer Company sells computers with an unconditional right to return the computer if the customer is not satisfied.

miskamm [114]

Answer:

When Boomerang delivers a computer to a customer.

Explanation:

Revenue is recognised by a business when it is earned. That is when the transaction is completed and a sale is established.

In the given scenario when a customer buys goods for Boomerang they have unconditional right to return the computer if the customer is not satisfied.

The situation where Boomerang should recognise revenue is when a computer is delivered to the customer and the sale is consummated.

If the company recognises revenue when an order is made, there is possibility of customer returning the computer. Then their revenue data will be inaccurate

4 0

3 years ago

1. A county's general fund has $4,000,000 in purchase orders outstanding at the beginning of 2020. The orders are delivered in 2

nata0808 [166]

Answer: C

$39,000,000

Explanation:

Using the legal budgetary basis, this should be reported. Decision makers have the scope in determining how the agency’s monies are actually spent. The limitations may result from legal restrictions on how funds may be used, matching funds issues (that will result in loss of revenues if the agency does not spend a certain amount), and state mandates.

ONLY the expenditure made in reference to 2020, will be accounted. Since the $5,000,000 is going to be for the next year so it's not added.

4 0

3 years ago

Read 2 more answers

A listing broker should: a. deliberately mislead owners about market value to obtain the listing. b. inflate the list price if t

Vinil7 [7]

Answer:

c. suggest a listing price based on comparable market data.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

Generally, a listing broker should suggest a listing price based on comparable market data.

5 0

3 years ago

Use an online yellow pages directory to find a company in your area that has a website on which it has an annual report, includi

kiruha [24]

The direct method only takes the cash transactions into account and produces the cash flow from operations. The cash flow indirect method makes sure to automatically convert the net income in terms of cash flow.

A major advantage of the indirect method of cash flows is that the method provides a reconciliation between net income and cash flows. The indirect method also helps financial-statement users better understand different linkages among financial statements and is a simple way of preparing the statement of cash flows.

Which is better the direct or indirect method of cash flows statement?

Direct cash flow statement is broadly accurate as it does not rely on adjustments and hence it takes less to time prepare cash flows statements. The indirect cash flow method cannot be regarded as accurate as it accounts for adjustments and it generally requires more time in preparation.

How do you tell if a company uses direct or indirect method?

While both are ways of calculating your net cash flow from operating activities, the main distinction is the starting point and types of calculations each uses. The indirect method begins with your net income. Alternatively, the direct method begins with the cash amounts received and paid out by your business.

Learn more about cash flow statement:

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6 0

2 years ago

. Thesecost $870,000 which the company pays upfront and it lasts about 3 years before it needs to be replaced. The annual operat

nasty-shy [4]

Answer: $354,738.94

Explanation:

Okay so for the 3 years this machine took up about $11,000 per annum in costs.

And it had an original cost of $870,000.

And we need to find the equivalent total annual average cost.

Cool.

Here's what we'll do.

We'll present value all the costs add them up so that we find the total cost TODAY. Then we will divide by the present value annuity factor for the period since the payments are equal.

Calculating that therefore we have,

Present Value of Total Cost = 870,000 + (11,000/1.09) + (11,000/1.09^2) + (11,000/1.09^3)

= $897,844.24 is the Total Cost.

Now we divide that total cost by the Present Value Interest factor for an annuity of,

PVIFA = ( 1 - ( 1 + r) ^-n )/r

= (1 - (1 + 0.09) ^ -3) / 0.09

= 2.53129466599

= 2.531

Now we divide the total cost by the PVIFA to get,

= 897,844.24/2.531

= 354738.937179

= $354,738.94

$354,738.94 is the equivalent total average annual cost of the oven if the required rate of return is 9 percent.

If you need any clarification do react or comment.

6 0

3 years ago