Answer:
As a disclosure only. No liability is reported
Explanation:
According to the International Accounting Standard IAS 37 Provisions, Contingent Liabilities and Contingent Assets, contingent liability can only be recorded if the likelihood of recording of the loss is reasonably probable and in this case the chances of occurence of the liability is reasonably possible which must not be recorded. The only effect would be disclosing the litigation matter and not including the liability amount that will arise if it goes wrong.
Answer: Communication cost
Explanation:
All or most server companies do allocate some form of liscence to their clients to browse the internet and use some internet tools for space of a period time. This service could either provide internet service or more depending on the cost and the kind of package that was bought. The process of acquiring this could be known as communication cost.
Answer:
($148 million)
Explanation:
Calculation to determine Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021
Cash flow from Investing activities ($ Million)
Proceeds from sale of land 12
Purchase of Investment (160)
Net cash inflows (outflows) from Investing activities ($148)
Therefore Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021 will be ($148 million)
Answer:
$4 advantage
Explanation:
In this question we need to compare the cost between the relevant cost and the outside supplier cost
The relevant cost is
= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit
= $8 + $5 + $3 + $5 × 80%
= $8 + $5 + $3 + $4
= $20
Since 80% of the fixed manufacturing cost above is eliminated so we considered the same
And, the outside supplier cost is $16
So based on the above calculation, the financial advantage is
= $20 - $16
= $4 advantage
This shows the company should purchased from outside supplier as it saves $4
The amount of the stock price that will be reflected in the PVGO is $10
The value of an organization's potential future growth is symbolized by the acronym PVGO, or "present value of growth opportunities." It represents the potential value for the organization by reinvesting its earnings back into the business.
Expected Dividend payment (D) = $2.50
Total Earnings (E) = $4
Rate of return (ROR) = 20%
Step 1. Using no growth rate (GR), computing the stock price (SP)
Since the growth rate is not specified, 0% is taken as the default value.
The stock price (SP) = E/ROR
= $4 / 20%
Stock price = $20.
Step 2. Computing the SP reflected in PVGO.
So, total SP with no GR
= $30 - $20
Stock price with no growth rate = $10
Hence, the $10 will be reflected in the PVGO
Learn more about PVGO:
brainly.com/question/28434542
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