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Residual Income
This is used for external reporting purposes. This term refers to the net income which is available for distribution to the firm's common stock holders. In managerial accounting it will provide the excess divisional or segment income over the product of the cost of capital for the organization multiplied by the average amount of capital invested during the period over which the income was earned in the division.
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Enron did not manages its trade account receivable in significant manner that made huge financial loss for the organizations. Hence, the management faced biggest fraud due to the f
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