Answer: D) not been recorded and unearned revenues have.
Explanation:
Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.
Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.
Answer:
DuPont Equation
The three factors that directly affect a company's ROE (Return on Equity) are:
1. Profit margin
2. Total asset turnover
3. Equity multiplier
Explanation:
The profit margin measures the operating efficiency of the company with higher sales leading to higher profit margins.
The total asset turnover is a financial measure that divides turnover by the total assets. It shows the efficiency achieved in the use of assets to generate sales revenue.
The equity multiplier measures the financial leverage of the company. It shows how the use of debts increases the value of the company's equity.
Answer:
$21,800
Explanation:
The computation of 4-year revenue is as shown below:-
Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2
= $500,000 × 8% × 1 ÷ 2
= $20,000
Interest Revenue = Bond Income + Amount of Discount Amortized
= $20,000 + $1,800
= $21,800
Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.
<span>The liquidity approach to measuring money defines the M2 money supply as the temporary store of value of anything that could be turned into money or has high liquidity. When they measure the assets they are trying to determine what would be the best to liquidate to make sure they are getting the most money from their items. </span>
The answer is: "Decision support system (DSS)" .
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