The revenue recognition principle states that companies typically record <u>revenue in the period in which they provide goods and services to the customers</u>.
The revenue recognition principle approach that agencies' sales are diagnosed while the product or service is taken into consideration and introduced to the customer — now not when the cash is acquired
The revenue recognition precept states that sales should be recognized and recorded while it is realized or realizable and when they are miles earned. In different phrases, groups shouldn't wait till sales are really accrued to document it in their books. revenue needs to be recorded when the business has earned the revenue.
According to usually accepted accounting principles, for a company to document revenue on its books, there needs to be a vital occasion to signal a transaction, including the sale of products, or a contracted mission, and there needs to be a fee for the products or services that matches the said price or agreed-upon fee.
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Answer:
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Explanation:
Answer:
risk premium is 4%
Explanation:
given data
investment = $100000
rate = 5%
rate = 4 %
cash flow = $9000
to find out
What is the risk premium
solution
we know here invest is done in more return so risk is always here taht is risk premium and invest here $100000 with 5 % so
return of investment is $5000
so here rate of investment is 5 %
and
we have given same amount cash flows of $9000 per year
so rate of investment will be 9%
so here
risk premium will be 9% - 5%
so risk premium is 4%
Answer:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Explanation:
Current liability refers to a short-term liability that is that is due for a payment within a year.
Long-term liability refers to a liability that is that is due for a payment more than one year in the future.
Not a liability - This implies that a liability is no longer a liability the moment a payment is made for it or the moment it is paid.
Based on the above, we therefore have:
A. Current liability
1. 60-day promissory note.
2. Salaries payable.
3. FICA taxes payable.
4. Income taxes payable.
5. Accounts payable.
B. Long-term liability
1. Note payable due in full in two years.
C. Not a liability
1. Payment of a 4-year term loan due this year.
2. Payment of a 30-year term loan due this year.
Answer:
Present value is $74,116.62
Explanation:
Giving the following information:
The machine pays= $2,655.00 every six months
n= 27 years= 54 semesters
Interest rate= 0.13/2= 0.065
First, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay
FV= {2,655*[(1.065^54)-1]}/0.065= $1,183,854.61
Now, we can calculate the present value using the following formula:
PV= FV/(1+i)^n
PV= 1,183,854.61/(1.065)^44= $74,116.62
