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Revenue Recognition or Realisation
The resources of business are utilized to earn revenue through sale of goods or rendering of services.The American Accounting Association described revenue as "the monetary expression of the aggregate of products or services transferred through an enterprise to its customers during a period of time" and according to Robert N Anthony "revenue is being considered as earned the date at that it is realized that is the date while goods or services are furnished to the customers in exchange for cash or for other valuable consideration.
Therefore the revenue is considered realized while the sales process is complete and transfer of title or ownership takes place. Therefore it is not essential that cash inflow should take place.
Explain Vernon’s product life-cycle theory of FDI. What are the strength and weakness of the theory? Answer: As to the product life-cycle theory, companies undertake FDI at a ce
RELATIONSHIP OF FINANCIAL MANAGEMENT WITH OTHER BUSINESS FUNCTIONS
Q. Discuss the techniques to manage risks? Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of the four major categories li
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Your friend Peter is planning to set up a new business which will manufacture and sell wooden tables. The parts that make up the table consist of a wooden table top measuring 1m by
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Homework 1. Suppose you deposit $18,000 into an account today that earns 6% interest per year, and you do not withdraw the money for 21 years. What will be the balance in the acco
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