Revenue in a business transaction is recognized <u>When </u><u>goods </u><u>or </u><u>services </u><u>are </u><u>provided </u><u>to </u><u>customers </u><u>and at the </u><u>amount expected </u><u>to be </u><u>received </u><u>from the customer. </u>
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<h3>What is revenue?</h3>
- Refers to the amount paid to a company for the provision of goods and services.
- Can only be recognized when that good or service has been provided to the customer.
Until a good or service is provided to the customer who bought it, revenue should not be recognized because it has not been earned by a company.
In conclusion, option C is correct.
Find out more on revenue recognition at brainly.com/question/1380073.
That answer is True because it says that the lowest possible quality and it is true
Answer:
The project is worth $2,738.57.
Explanation:
Giving the following information:
You have been offered a project paying $300 at the beginning of each year for the next 20 years. The rate of return is 9%.
To calculate the present value, first, we need to calculate the final value:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 300
n= 20
i= 0.09
FV= {300*[(1.09^20)-1]}/0.09
FV= $15,348.06
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 15,348.06/1.09^20= $2,738.57
Answer:
III) Increase its gross margin
Explanation:
If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.
The only option that increases the value of the company is to increase its net profit, since:
- an increase in inventory will result in a lower stock price
- a decrease in the asset turnover ratio will result in a lower stock price
- the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
