Question: Analyse SS’s accounting policy governing revenue recognition of software Align in the current year.
SS enters into arrangements with customers that can include various combinations of software and services. Among its product portfolios, one arrangement makes significant revenue contribution in 2019 and 2018. Align is a project management software targeted at small and medium businesses. SS’s usual arrangement with customers not only includes the software license, but also includes customizing the software and integrating it into the customers’ information systems. In addition, customers purchasing the software license will receive software assurance service over a 5-year period at no additional cost. The assurance service guarantees proper functioning of the software within the customers’ information system. The company currently recognize the revenue from Align by amortizing it over the 5-year assurance period.
In: Accounting
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The state government collects $405 billion in tax revenue during the current fiscal year and is running a cash flow surplus. Which of the following is true?
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A government payment to an individual or firm that lowers the cost of consumption or production, respectively, is referred to as which of the following?
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In: Finance
If a firm’s revenue growth is 25 percent, its return on equity is 12 percent, its return on business assets is 10 percent, and its dividend payout ratio is 40 percent, what is its sustainable growth rate?
In: Finance
In: Finance
In: Finance
In: Finance
The following simple bivariate linear regression model was estimated explaining a firm's sales revenue to the income of its customer’s (INC) using annual data over a nine-year period:
Sales Revenue = 81.38 + .23(INC),
(0.018) p-vale = 0.001
where the standard error of the slope estimate is reported in parentheses below the coefficient estimate
a) Interpret the value of the intercept term and the slope term in the fitted regression equation.
b) Is the coefficient on the income variable statistically significant?
c) What level of sales would you forecast if income were $4,200?
In: Economics
Use the price function to obtain the total revenue function (TR). Write the TR function then plot TR on the lower set of axes.
Qx = 40000 - 200Px
In: Economics
In: Economics
a. The market price is determined by:
multiple choice 1
marginal revenue and marginal cost.
market demand and market supply.
marginal revenue and average total cost
b. To determine the firm's profit-maximizing output, the firm will set its marginal revenue equal to:
multiple choice 2
marginal cost.
average variable cost.
average total cost.
market price.
c. A firm is making an economic profit if, at the profit-maximizing output, the market price is:
multiple choice 3
less than average total cost.
less than average variable cost.
greater than average total cost.
greater than average variable cost.
d. If firms are earning economic profits, the market price will:
multiple choice 4
fall as some existing firms exit the market.
increase as some existing firms exit the market.
fall as new firms enter the market.
increase as new firms enter the market.
In: Economics