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3 years ago

What are the requirements for an entity to account for a contract with a customer?

1 answer:

4 0

A contract with a customer must meet all of the following criteria:
Has approval and commitment of the parties.
Rights of the parties are identified.
Payment terms are identified.
The contract has commercial substance.
Collectability of consideration is probable.

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You can buy property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) (L

kolbaska11 [484]

Answer:

a) Present Value of sales = $2,722,332.78

b) Property is not attractive. NPV$ (277,667.21)

c) Property is attractive. NPV-$520,874.79

Explanation:

The present value of the property

PV = S× (1+r)^(-n)

S- Sales value

r- interest rate -8%

n- number of years

PV - present value

PV = 4,000,000× 1.08^(-5) = $2,722,332.78

b. Is the property investment attractive to you?

We calculated the PV of the investment as follows

NPV = PV of sales value - initial cost

= 2,722,332.78 - 3,000,000=$ (277,667.21)

The property investment is not attractive because it will produce a loss in capital i.e negative NPV

To determine we will calculate the NPV again with considering the additional rental income

PV of annual rent = 200,000 × (1-1.08^(-5))/0.08= 798,542.00

NPV = 798,542.00 + 277,667.2119 - 3,000,000 =520,874.79

The property is attractive as it produces positive NPV

8 0

4 years ago

On the long-run aggregate supply curve,

kirill115 [55]

The long-run aggregate supply curve shows the relationship between price level and real GDP.

<h3>What is the supply curve?</h3>

It should be noted that the information is incomplete. Therefore, an overview will be given. The supply curve is a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period.

In this case, in a typical illustration, the price will appear on the left vertical axis, while the quantity supplied will appear on the horizontal axis.

The long-run aggregate supply curve shows the relationship between price level and real GDP that would be supplied if all prices were fully flexible.

The position of the long-run aggregate supply curve is determined by the aggregate production function and the demand and supply curves for labor.

Learn more about supply curve on:

brainly.com/question/26430220

#SPJ1

8 0

2 years ago

A category that is not in the chart of accounts is

Lera25 [3.4K]

Let's look at the Accounting Equation = Assets = Liabilties + Stockholders' Equity

For most businesses, their chart of accounts will include Current Assets (or Short Term Assets) as well as Long Term Assets. An example of a current asset if cash, and a building is a long term asset.

Short term and long term Liabilities are also included too - money you owe. A Note Payable is a long term example, Interest Payable is a short term one.

Stockholders' Equity is one too - these include your stocks, your retained earnings.

But, expect for Retained Earnings, the names of your <em>statements </em>are not. So "Balance Sheet" is not a category, nor is "Cash Flows Statement".

6 0

3 years ago

Read 2 more answers

What is the technology skills of education and training

jekas [21]

Answer:

the study facilitating learning and improving performance by creating using and managing appropriate technologies

3 0

3 years ago

Business writing is more forceful if it uses active-voice verbs. Revise the following sentences so that verbs are in the active

seraphim [82]

Answer:

The manager gave employees their checks at 4 p.m. every Friday.

McDonald’s tried new spices and cooking techniques to improve its hamburgers.

My boss designed our new company logo.

The CEO commended the managers with the most productive departments .

The leader asked all team members to brainstorm for 10 minutes .

Explanation:

a. Employees were given their checks at 4 p.m. every Friday by the manager.

Active: The manager gave employees their checks at 4 p.m. every Friday.

b. New spices and cooking techniques were tried by McDonald’s to improve its hamburgers.

Active: McDonald’s tried new spices and cooking techniques to improve its hamburgers.

c. Our new company logo was designed by my boss.

Active: My boss designed our new company logo .

d. The managers with the most productive departments were commended by the CEO.

Active: The CEO commended the managers with the most productive departments .

e. All team members were asked by the leader to brainstorm for 10 minutes.

Active: The leader asked all team members to brainstorm for 10 minutes .

7 0

4 years ago