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3 years ago

What conditions must be met for a company to include a transaction in reported revenue for a given period?

Business

1 answer:

Morgarella [4.7K]3 years ago

7 0

Answer:

Conditions to be met by a company to recognize a transaction in revenue for a given period are:

It should provide a benefit and shall be calculated and defined in numerical and monetary terms.
It should relate to any kind of service or products provided.
It shall be accrued in the current financial period.
All the risk and rewards related to the service or product shall be transferred.

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Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.

Sedbober [7]

Answer:

Explanation: please refer to the explanation section

Initial fixed asset Investment = 2.33million = 2 330 000

Modified Accelerated Cost recovery System

The Fixed Asset Falls under the 3 year MACRS class the project the asset which states that Asset Depreciation range Midpoint is 4 years or less The period for this project is 3 years

Estimated annual sales = $1735000

costs = $640,000

Initial Net working Capital investment = $300,000

Residual Value (Value of the fixed asset at the end) = $255,000

a. Projected Cash flows

Year 0

Cash outflows = 2 330 000 - 300 000 - 255 000 = 2375000

year 1 year 2 year 3

Estimated sales 1735000 1735000 1735000

costs -640000 -640000 -640000

Depreciation -791666.67 -791666.67 -791666.67

Residual Value 255000

Net sales 303333.33 303333.33 558333.33

Tax 25% -75833.33 -75833.33 -139583.33

Net Cash flows 227500 227500 418750

Depreciation = (2330 00 + 300 000 -255000)/3= 791666.67

Tax = Net sales x 25%

b Net Present Value (Required rate Return = 9%)

PV = 227500/(1+0.09)^1 + 227500/(1 + 0.09)^2 + 418750/(1+0.09)^3

Present Value of cash flows = 723549.63

Net Present Value = 723549.63 - 2630 000 = -1906450.37

The net present Value is Negative indicating the project will not bring positive returns

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3 years ago

If the owner of a children's day-care center were to answer the question, "what business are you in?" with the statement, "We nu

S_A_V [24]

Answer:

Yes is a market-oriented mission statement.

Explanation:

Small businesses solve problems and offer solutions for a customer's needs. A market-oriented mission statement defines a purpose that focuses on satisfying a customer's needs. The purpose of a market-oriented mission should match current market data and environments

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3 years ago

The vice president of logistics for a salty-snack A reading service for the visually impaired requires each reader applicant to

katrin2010 [14]

Answer:

logistics integration with cost-effective technique.

Explanation:

Combining these two techniques the company might better attend the consumers and also save costs for the Company.

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3 years ago

A decrease in economic activity and the subsequent cutbacks in production that results in employees being laid off leads to

Elena L [17]

In cases where an organization decrease it economic activity and have major cutbacks, it is expected that employees will be laid off. Laying off may lead to an increase of unemployment rate in a certain country in which it will have bigger scale of effects in taxes, bills to pay and as especially if they have families or dependents.

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3 years ago

Read 2 more answers

Bryan Dobbs, Director of Marketing at Sarga Inc. has received multiple complaints about Davy Siegler over the past two months. A

pychu [463]

Answer:

D. organizational citizenship behavior.

Explanation:

In this scenario exemplified in the question, it can be said that Davy has all work behaviors except the behavior of organizational citizenship.

This behavior can be described as one that is not mandatory as part of the functional requirements of a job position, but an employee who presents organizational citizenship helps the company to promote a culture favorable to the maintenance of ethics and the development and performance of the organization as one all.

Any informal action by the worker that benefits the organization is part of the behavior of organizational citizenship. Some of these dimensions of behavior are altruism, loyalty, conscience, self-development, obedience, etc.

These behaviors are capable of promoting the well-being of the employee and the entire organization.

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3 years ago