Answer:
False.
Explanation:
The revenue recognition principle states that revenue should be recognized and recorded when it is realized or realizable and when it is earned. In other words, companies shouldn’t wait until revenue is actually collected to record it in their books.
Revenue should be recorded when the business has earned the revenue even it has not been paid by customers to finance expenditures
Explanation:
the reason the leasing company is losing money is because the people in sales are paid their commission for every equipment not regarding the amount of profit that was made. This brought about leasing of so many equipments as they could without thinking if it would have a positive or negative impact on the company. they could lease as many equipments as they could because they were charging low rates to leasing companies.
2. How do we fix this situation and turn the company to a profitable one
The company can fix this by figuring out a much better way to pay incentives to the people in sales. Incentives should be paid out of the profits of the business in such a way that if the lease rate is reduced the performance of those in sales is reduced also.
Answer:
The Year 4 cash flow is $33,348.
Explanation:
The Year 4 is the last year of the project.
In this year we have:
- Income: +$48,000.
- Working capital recovery: +$3,900
- Equipment sale: +$5,460
- Equipment book value: -$4,380
To calculate the tax, we apply the tax rate to the income and to the sale profit (difference between the market value and the book value of the equipment):
![Tax=0.40*[48,000+(5,460-4,380)]\\\\Tax=0.40*(48,000+1,080)\\\\Tax=0.40*49,080=19,632](https://tex.z-dn.net/?f=Tax%3D0.40%2A%5B48%2C000%2B%285%2C460-4%2C380%29%5D%5C%5C%5C%5CTax%3D0.40%2A%2848%2C000%2B1%2C080%29%5C%5C%5C%5CTax%3D0.40%2A49%2C080%3D19%2C632)
- Tax: -$19,632
Then, we can calculate the Year 4 cash flow:
I would live my life in the past because I would already know what would be happening in my life. I would be able to change the future for the better. If I were to live 1 year in the future the world can be completely different, and I wouldn't have a clue on how it changed.
Answer:
a. fear that they would be forced out of their habits
Explanation:
In as much as the aim is for absences and vacations not to pose a problem in productivity, Joshua's employees still objected because they might one day be told not to go on vacations and not even be absent from work. Thus, this becomes a problem for them.
Therefore the fear that they would be forced out of their habits sets in and they object the proposal.
