Answer:
An s corporation or a limited liability company, but not a corporation.
Explanation:
When accounting for a long-term construction contract under IFRS, if the percentage-of-completion method is not appropriate, the seller should account for revenue using "cost recovery method".
<h3>What is cost recovery method?</h3>
According to the "Cost Recovery Rule," any excess cash value (cost basis) over premium payments that results from a partial withdrawal of cash or a policy surrender is taxable income.
Calculation for cost recovery method includes:
- the product's operating expenses, such as those for hardware, software, and labour, should all be added up.
- Analyse whole revenue, regardless of whether a client made a lump-sum payment or several instalments.
- To calculate the profit, deduct the cost of products from whole sales.
To know more about the lump-sum payment, here
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Answer:
<u>Status quo</u>.
Explanation:
Status quo is an expression created in the 1700s that means "in the state of things". In a business strategy the status quo can be used to keep business processes as they are. In the case of Procter and Gamble's, maintaining the status quo is a strategy that does not include long-term vision, because even if products are revenue generating, the market is saturated, so it is important to adopt an innovation strategy to prevent potential negative economic factors that may arise.
Answer:
$198
Explanation:
Two brothers Mark and Rick each inherit $6,000
Mark invests his money in a savings account with an annual return of 2.5%
After one year the interest payment that will be received by Mark can be calculated as follows
= $6,000 × 2.5/100
= $6,000 × 0.025
= $150
Rick invests his portion of the money in a CD paying 5.8% annually
The amount of interest that will be received by Rick after one year can be calculated as follows
= $6,000 × 5.8/100
= $6,000 × 0.058
= $348
Therefore the amount of money that Rick has over Mark after a period of one year can be calculated as follows
= $348-$150
= $198
Hence Rick has $198 more than Mark after one year
