How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.
Answer: Stock market works by doing an activity of buy/sell. It is a profit process. For example, you bought something cheap and sell it expensive that is profit.
Explanation:
Answer: Business process re-engineering
Explanation: In simple words, business process re-engineering refers to the process in which an organisation tries to restructure and change the process or methods of operations for smooth functioning of the business.
It is modern technique that are used by the firms in the industries which have high competition and are strongly interdependent on other firms in the industry.
Answer:
$7,000 is the amount of revenue in year 1
Explanation:
The amount received from the customer is $24,000,which is payment for work to be performed over 24-month period i.e 2 years
In year 1,the work would be performed from June -December,hence 7-month worth of revenue should be recognized in year 1 as follows
revenue recognition in year=$24,000*7/24=$7,000
The amount of revenue attributable to year 1 on the income statement is $7,000
