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A negative net present value indicates that the project’s return is net loss
<h3>What is a net present values?</h3>
A net present values is a total sum of money that is currently available. It may be in terms of assets or revenue generated.
When there is a negative net present value, it means the <u>revenues generated is lower that the cost </u>of a project. This invariably leads to a loss for a particular company.
Hence a negative net present value indicates that the project’s return is net loss
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Answer:
Alpine West, Inc.
a. When Alpine West, Inc. should recognize revenue from the sale of its season passes evenly over five months from December to April when the passes are put to use.
b. General Journal for
November 6:
Debit Cash Account $460
Credit Deferred Revenue $460
To record the purchase of a season ticket or pass by Jake Lawson.
December 31:
Debit Deferred Revenue $92
Credit Service Revenue $92
To record the ski service consumed by Jake Lawson for December.
c. In Alpine West, Inc.'s income statement and balance for 2013, the following amounts will be included in relation to the sale of the season pass to Jake Lawson:
Income Statement: Service Revenue $92 and related costs.
Balance Sheet: Deferred Revenue (Liabilities side) $368 ($460 - 92).
Explanation:
Alpine West, Inc. will make the above entries in accordance with the accrual concept and matching principle of generally accepted accounting principles. These require that revenue, income, and expenses related to a period must be accrued for that period whether actually received / paid or not. It also means that the costs incurred for any revenue generated must be matched to the revenue and vice versa for that particular period.
Answer:
cultural variables
Explanation:
Based on the scenario being described within the question it can be said that the company is taking into account cultural variables. This refers to the different behaviors, outlooks, values and beliefs between people from different societies that make them unique. In this case selling different foods in different locations in order to compensate for the differences in beliefs is taking into account the cultural variables.
Answer:
True
Explanation:
When a company increases the amount of business units it is harder to be informed about each business unit. When the manager try to understand and review all the information about the business units the time is not enough, in that case the sustainability of a multiple units business model is a challenge. When this happens, the manager can empower a business unit manager, so the corporate manager just needs to know the basic information and be informed about the decisions and results obtained evaluating the results of the business unit.