Q: If a contract modification adds distinct goods or services and the contract price increases by an…
A: Any modification in the price or scope or both with regard to a contract by the parties to the…
Q: The contract rate is above the market rate. The contract rate is equal to the market rate.
A: The correct answer is option (a) The contract rate is above the market rate.
Q: Assuming the investment is appropriately recognized as financial assets at amortized cost: How much…
A: A bond is a kind of debt financial instrument that is being issued by corporations and the…
Q: Which of the following correctly describes a repurchase agreement?a. The sale of a security with a…
A: Answer: The correct option is Option (a). Meaning of repurchase agreement: A repurchase agreement is…
Q: What are the similarities and dissimilarities of the three governing laws on installment sales: the…
A: The Maceda Law and the Recto Law are not the same. Both laws are used for the property on the…
Q: compute the amount of the installments
A: The loan is the amount of money borrowed from a lender at a fixed rate of interest. the amount can…
Q: The second cash payment to any partner/s under the program of priorities shall be made thus
A: Partnership is a business type wherein two or more person come and form an organisation and share…
Q: Requirement: a. What is the investor's share in the profit of the associate for 2020 and 2021? b.…
A: Step 1 Investment in associate when investment in another entity holding its equity from 20% to 50%.
Q: This is an arrangement in which one party sells a property to a buyer and the buyer immediately…
A: solution: Sale and leaseback is an arrangement in which one party sells a property to a buyer and…
Q: The present worth of the two contracts is determined to be $
A: Present worth of a contract is the value it possess in current period by considering the discounted…
Q: Which of the following is true about forward contract expiration? a.A deliverable forward contract…
A: On the date of expiration of a forward contract, settlement can be made on delivery basis or on cash…
Q: In the case of grants related to an asset, which of these accounting treatments (balance sheet…
A: Para 8.1 of IAS 20 states that: "Grants related to specific fixed assets are government grants…
Q: What are three similarities of a future contract and a forward contract?
A: Forwards are the contract made for the private placements while futures are traded under stock…
Q: A(n) is a contract for the use of an asset for a period of time without having to buy the asset. Oa.…
A: lease: lease is a contract to buy the right to use the asset for particular period of time on…
Q: When the outcome of a construction contract cannot be estimated reliably, how shall contract revenue…
A: when the outcome of a construction contract can be estimated reliably, contract revenue and contract…
Q: In the case of grants related to an asset, which of these accounting treatments (statement of…
A: As per PAS 20 "Accounting for Government Grant and Disclosure for Government Assistance" 2…
Q: All of the following are components of the defined benefit cost except unvested past service…
A: Defined benefit cost includes: Service cost Expected return on plan assets Change in the effect of…
Q: t 31 December 20X7, what should be the arrying amount of its interest in Northfield,
A:
Q: What is a 12% commission on a $2.5M contract?
A: Commission = 12% Contract value = $2.5 million
Q: a. What amount of income should be reported for the current year if the percentage of completion…
A: Formula: Revenue Recognized= Cost Incurred to DateEstimated Total Cost×Contract Price-Revenue…
Q: The forward contract price, established when the contract is initiated at t = 0, is denoted as…
A: Forward Price: It refers to the contract price of an underlying financial asset or commodity that is…
Q: __ is a contract that involves compensation for specific potential future losses in exchange for…
A: Step 1 Currency swap forward contracts are frequently used by companies with international market…
Q: Which one of the following item will be debited in profit and loss appropriation account? a.…
A: Solution- Profit and loss appropriation account is opened to show the distribution of net profit…
Q: The difference of gross investment in the lease and net investment in the lease of the lessor is?…
A: Solution: Gross investment in lease: The sum of 1. The lease payments receivable by a lessor under a…
Q: Under IFRS 15, when shall the incremental cost of obtaining a contract with a customer be recognized…
A: IFRS (International financial reporting standards) refer to a set of accounting guidelines and rules…
Q: Explain how to account for revenue on a long-term contract over time as opposed to at a point in…
A: The revenue recognition principle: The revenue recognition principle refers to the revenue that…
Q: When it is probable that total contract costs will exceed total contract revenue, how shall the…
A: IAS 11 prescribes the contractor’s accounting treatment of revenue and costs associated with…
Q: A , B and C bind themselves to pay D P30,000. Only A received the money as per agreement between A,…
A: Contract refers to those legally enforceable obligations in which two or more parties either…
Q: If the outcome of a long-term contract can be measured reliably, the preferred accounting method…
A: Long term contracts are those contracts which are related to construction of building. Usually long…
Q: What are the two things that happened in the sale-leaseback agreement?
A: Sale and Leaseback Agreement is a kind of financial transaction. This is a situation that arises…
Q: The forward contract value today is denoted as a.Vo(0,T) b.Fo(0,T) c.So(1 + r)^T d.Fo(0,T)/(1 +…
A: Forward contracts are buy or sell agreement between two parties that specify the exchange of asset…
Q: Beyond the basic requirement of a legally enforceable contract that suggest the issues in real…
A: The following are some key issues that are part of the real estate contract:Lawful Issues: The other…
Q: under the bonus method, the asset contribution of the partner receivinga bonus is debited at
A: Bonus Method: The bonus method is used to grant a new partner additional capital in a…
Q: Determine the initial cost of property, plant, and equipment and intangible assets acquired in…
A: Property, Plant & Equipment (PPE) is valued at their historical cost or initial acquisition…
Q: e contract revenue yo da
A: The percentage of completion method is a method of recognizing revenue of long-term contract or…
Q: The amount due from or at the direction of the grantor is accounted for by the operator from the…
A: When the operator recieves a financial asset from the grantor, it is measured at fair value.
Q: What amount of RGP should be reported for the current year if the percentage of completion method is…
A: Answered:
Q: 33. Entity A enter into a long-term contract to provide service. The outcome of the transaction can…
A: Long term contract of service are those contracts in which there is an agreement between two parties…
Q: d. when the entity's right to receive payment is established. 2. Entity A enters into a long-term…
A: ●2.Entity A enters into a long-term contract to provide services. The outcome of the transaction can…
Q: Assuming the requirements for recognizing revenue over time are met, the profit to be recognized in…
A: Under construction contract, the profit is recognised on the basis of the costs incurred during the…
Q: Give the FIRST exception to the general rule that: If the consideration of the contract consists…
A: If the consideration of the contract consists partly in money and partly in another thing, the…
Q: If the outcome of a long-term contract can be measured reliably, the preferred accounting method…
A: The percentage of completion method is an accounting technique in which long-term deed income and…
Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the…
A: SOLUTION- PERFORMANCE OBLIGATION IS A PROMISE TO DELIVER THE GOODS OR SERVICES IN LIEU OF PAYMENT…
Q: ind the total cost of the federal unsubsidized loan. Round answer to two decimal places, if…
A: The monthly payment is a mount that is paid on every month for amortize the loan that include the…
Step by step
Solved in 3 steps with 1 images
- Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues and real estate developments. A small consulting firm entered into a fixed-price contract with a large developer, resulting in a stable income of $260,000 per year in years 1 through 3. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $190,000 per year for 2 more years. Determine the present worth of the two contracts at an interest rate of 10% per year.Chang Consulting. Inc., has a $15,000 overdue debt with Supplier No. 1. The company is low on cash, with only $4,000 in the checking account and does not want to borrow any more cash. Supplier No. 1 agrees to settle the account in one of two ways: Option 1: Pay $4,000 now and $18.750 when some large projects are finished, two years from today. Option 2: Pay $25,000 three years from today, when even larger projects are finished. Assuming that the only factor in the decision is the cost of money (8%), which option should Clary choose?4. Present value of an income stream Read No Evil (RNE) is a firm specializing in the destruction of sensitive documents. An industrial paper shredder costs $8,000. If bought, it would raise RNE's revenue by an additional $400 per year. The machine is designed to last forever and never require maintenance. If the firm does not purchase the machine, it will put the money into an interest-bearing bank account. At which interest rates would RNE be willing to buy the machine? Check all that apply. 12% 4% 6% 1%
- Ralston Consulting. Inc., has a $25,000 overdue debt with Supplier No. 1. The company is low on cash, with only $7,000 in the checking account and does not want to borrow any more cash. Supplier No. 1 agrees to settle the account in one of two ways: Option 1: Pay 57,000 now and $23,750 when some large projects are finished, two years from today. Option 2: Pay $35,000 three years from today, when even larger projects are finished. Assuming that the only factor in the decision is the cost of money (8%). which option should Ralston choose?The economic downturn in 20082009 resulted in the loss of jobs and an increase in delinquent loans for housing. In projecting where the real estate market was headed in the coming year, economists studied the relationship between the jobless rate and the percentage of delinquent loans. The expectation was that if the jobless rate continued to increase, there would also be an increase in the percentage of delinquent loans. The following data show the jobless rate and the delinquent loan percentage for 27 major real estate markets. Source: The Wall Street Journal, January 27, 2009. a. Compute the correlation coefficient. Is there a positive correlation between the jobless rate and the percentage of delinquent housing loans? What is your interpretation? b. Show a scatter diagram of the relationship between the jobless rate and the percentage of delinquent housing loans.Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Limited, for a cost of $30 per unit. To evaluate this offer, Troy Engines, Limited, has gathered the following information relating to its own cost of producing the carburetor internally: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost $34 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required 1 Required 2 Per Unit Required 3 Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 13,000 carburetors from the outside supplier? 2.…
- Question Content Area Ralston Consulting, Inc., has a $48,000 overdue debt with Supplier No. 1. The company is low on cash, with only $13,440 in the checking account and does not want to borrow any more cash. Supplier No. 1 agrees to settle the account in one of two ways: Option 1: Pay $13,440 now and $45,600 when some large projects are finished, two years from today. Option 2: Pay $67,200 three years from today, when even larger projects are finished. Assuming that the only factor in the decision is the cost of money (10%). (Click here to see present value and future value tables) A. Calculate the present value of each option. Round your present value factor to three decimal places and final answer to the nearest dollar. Present value of Option 1 $fill in the blank 1 Present value of Option 2 $fill in the blank 2 B. Which option should Ralston choose?10.A business segment that has responsibility for both revenues and expenses is called__________________ 11. Suppose an office building is owned for which long-term leases have been signed, the tenants pay utilities and operating costs, and straight-line depreciation is taken. The rate of return on the book value of this investment can be expected to _____________________ 12. An advantage of centralization is ______________________ 13. ROI will decrease if ____________________ 14. Operating income is __________________4211 1.Return on Investment for Multiple Investments, Residual Income The manager of a division that produces add-on products for the automobile industry has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans and minivans. The second is a turbocharger. Without the investments, the division will have average assets for the coming year of $29.4 million and expected operating income of $4.335 million. The outlay required for each investment and the expected operating incomes are as follows: Air conditioner Turbocharger Outlay $1,150,000 $540,000 Operating income 90,000 114,080 Required: 1. Compute the ROI for each investment project. Round to the nearest whole percent. Air conditioner, ROI fill in the blank 1 % Turbocharger, ROI fill in the blank 2 % 2. Compute the budgeted divisional ROI for each of the following four alternatives. Round to two decimal places. a. The air…
- Joe’s Build Back Better (BBB) Ammo Corp has$15 million in cash, which it has accumulated from retained earnings. It was planning to use the money to build a new factory. Recently, the interest rate has increased. How does this influence the company's decision, assuming the alternative to investing in a factory is loaning the money out? (A)It doesn’t, since the company’s shareholders are expecting a new factory. (B)It is more likely to build the factory because a higher interest rate makes the factory more valuable. (C)It is less likely to build the factory, since the opportunity cost of using the funds to build a factory rises with a higher interest rate. (D)It doesn’t influence their decision, since the company does not need to borrow money to build the factory.Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally likely for the coming year. Management must choose between two mutually exclusive projects. Assume that the project chosen will be the firm’s only activity and that the firm will close one year from today. The firm is obligated to make a $4,400 payment to bondholders at the end of the year. The projects have the same systematic risk, but different volatilities. Consider the following information pertaining to the two projects: Economy Probability Low-VolatilityProject Payoff High-VolatilityProject Payoff Bad .50 $4,400 $3,800 Good .50 5,050 5,650 a. What is the expected value of the firm if the low-volatility project is undertaken? What if the high-volatility project is undertaken? (Do not round intermediate calculations and round your answers to the nearest whole dollar, e.g., 32.) b. What is the…39- Akkudu Ltd. is a manufacturing company that produces electronic gadgets in bulk quantities for its customers in Oman. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic-crisis during the last year. However, the company has faced some serious liquidity problems due to delayed payment by the customers and lower sales in the first two quarters. Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finance manager of the company is seeking your help in assessing the average payment period from the following financial data. During the last year the company started its operations with an opening stock of OMR 22,000 and made a purchase of 50,000 OMR. The company has returned OMR 5000 worth material due to quality issues. During the last year, the business has paid OMR 6000 as wages. The company sold goods for a total amount of OMR 80,000 of which OMR…