Select the correct answer.

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

sesenic [268]

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.

8 0

3 years ago

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respe

Lena [83]

Answer:

$856,376.30

Explanation:

What is the terminal, or horizon, value of operations?

2 years, FCF 1 = 80,000, FCFC 2 = 100,000, Growth rate= 5%, WACC = 16%

==> 100,000*(1+0.05)/(0.16-0.05)

==> 100,000*(1.05/0.11)

==> 100,000*(9.545454(

==> 954,545

Calculating the value of Kendra's operations.

Years Cash-flows PVF at 16% Present value

1 800,000 0.86206 68964.80

2 105,000 0.74316 78031.80

2 954,545 0.74316 709379.70

Total value 856,376.30

8 0

3 years ago

Free cash flow (FCF) and net income (NI) differ in the following ways:

alexandr402 [8]

Answer:

c. I, II, and III only

Explanation:

As we know that

Free cash flow = Earnings before Interest and Taxes × (1-Tax Rate) + Amortization and Depreciation expense - Change in Net Working Capital -Capital Expenditure

And, the Net income is determined after considering all cash and non cash expenses.

Therefore, I, II and III statements are considered

Hence, the option c is correct

6 0

3 years ago

Identify and discuss the “needs” of a society.

sweet [91]

A traditional list of immediate "basic needs" is food (including water), shelter and clothing. Many modern lists emphasize the minimum level of consumption of 'basic needs' of not just food, water, clothing and shelter, but also sanitation, education, and healthcare.

7 0

3 years ago

The saying "leaving money on the table" is associated with a predatory pricing strategy that results in excessive seasonal disco

andrew11 [14]

It is associated with using a market penetration strategy when there is an opportunity for price skimming. Leaving money on the table means that during a business deal or negotiation one of the parties does not receive the amount of money they could have earned, instead they accept a smaller sum. This strategy can be beneficial or hurtful depending on the scenario.

8 0

3 years ago