Which of the following is not an indicator that revenue for a service can be recognized continuously?
A. The seller is enhancing an asset that the buyer controls as the service is performed.
B. The seller is not enhancing an asset that the buyer controls or that has an alternative use to the seller, and the customer receives a benefit as the seller performs the service.
C. The seller is not enhancing an asset that the buyer controls or that has an alternative use to the seller, and another seller would need to re-perform the tasks performed to date if that other seller were to fulfill the remaining obligation.
D. None of the other answers is correct.
Ans: C. The seller is not enhancing an asset that the buyer controls or that has an alternative use to the seller, and another seller would need to re-perform the tasks performed to date if that other seller were to fulfill the remaining obligation.
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Use the information in Table 13.9. What is the cost of a plan that ships 150 units from 1 to C, 150 units from 1 to D, 250 units from 2 to A, 150 units from 2 to C, 200 units from 3 to B, and 50 units from 3 to D?
A) less than $15,000 B) more than $15,000 but less than $16,000 C) more than $16,000 but less than $17,000 D) more than $17,000
Creative Industries Inc is looking to finance a new project with either debt or equity. The firm anticipates that its breakeven EPS-EBIT point is when EBIT reaches $3,000,000 If the projected EBIT are $3,500,000 for the foreseeable future, then to maximize EPS the firm should issue:
A) equity. B) debt C) preferred shares. D) a dual class of equity.