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elixir [45]
3 years ago
7

Which of the following is most likely to be considered revenue, according to the Financial Accounting Standards Board’s definiti

on? Multiple Choice A company in the business of manufacturing scientific devices recognizes a gain from the sale of agricultural land from the fringes of its corporate campus. A pharmaceutical firm receives an anonymous donation to settle a liability owed to a municipality. A web streaming company fulfills a 12-month service term paid by customers in advance.
Business
1 answer:
sesenic [268]3 years ago
8 0

Answer:

A web streaming company fulfills a 12-month service term paid by customers in advance.

Explanation:

Revenue is recognized from services rendered or goods delivered. It is recognized only when the risk and reward is transferred, further it relates to the normal business of company.

As in the first sentence the company makes scientific devices and it sales an agricultural land, that is sale of fixed asset.

In second case the pharmaceutical company receives donation which is anonymous.

All the things are not revenue for company.

It is only the web streaming company which shall recognize revenue as the services are rendered and revenue shall be recognized related to normal business of company.

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The relationship between the interactive communication capabilities of the internet and customization is that
tangare [24]
<span>The relationship between the interactive communication capabilities of the Internet and customization is a highly interactive and individualized information and exchange environment is created for shoppers and buyers.</span>
8 0
3 years ago
Sally’s Dress Shop, Inc. reports operating income of $200,000 and interest expense of $18,000. The average common stockholders’
Sphinxa [80]

Answer:

5

Explanation:

Given that,

Beginning assets = $80,000

Ending asset = $120,000

Operating income = $200,000

Interest expense = $18,000

Average common stockholders’ equity = $20,000

Average total assets:

= (Beginning assets + ending asset) ÷ 2

= ($80,000 + $120,000) ÷ 2

= $100,000

Leverage ratio:

= Average total assets ÷ Average common stockholders' equity

= $100,000  ÷ $20,000

= 5

7 0
4 years ago
On December 31, 2018, Adelphi Corporation has outstanding 500 shares of $100 par value, 4% cumulative and nonparticipating prefe
alexandr402 [8]

Answer:

$5.50 dividend per share to common stock

Explanation:

In case a company has cumulative preference shares then the company has to pay preference dividend in arrears

Here, preference dividend was not paid in the year 2017

Preference dividend for 2017 = 500 \times $100 \times 4%

= $2,000

Since the dividend is paid in between the year 2018, dividend is paid for the year 2017 and not for 2018 thus preference dividend is for a year, only for 2017

Therefore, dividend to common equity = $35,000 - $2,000 = $33,000

Dividend per share = $33,000/6,000 = $5.50 per share

6 0
4 years ago
Which of the following methods of project analysis is defined as computing the value of a project based on the present value of
Anna35 [415]

Answer: discounted cash flow valuation

Explanation:

The discounted cash flow valuation is a method of project analysis that is defined as computing the value of a project based on the present value of the project based on the present value of the project's anticipated cash flows.

Discounted cash flow is used to determine an investment's value based on the future cash flows that the investment will bring.

7 0
3 years ago
Catamount Company had current and accumulated E&amp;P of $500,000 at December 31, 20X3. On December 31, the company made a distr
lapo4ka [179]

Answer:

D. No loss recognized and a reduction in E&P of $200,000

Explanation:

Given that:

  • Current and accumulated E&P : $500,000
  • A distribution of land to its sole shareholder: $200,000
  • E&P basis to Catamount :  $250,000

From that, we can see that the current and accumulated E&P is greater than its distribution of land so no loss would be reported so there will be reduction in earning and profits of the company of $200,000.

Hope it will find you well.

5 0
3 years ago
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