What does it mean when residual income is zero?

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: From the data below, how much is the total passive income?

A: Passive income is generally an additional income apart from employment and business activity. In…

Q: When are credits increases? When are credits decreases?

A:

Q: Please explain the meaning of differential income.

A: Concept of differential is generally used when there are two or more alternatives to choose upon.…

Q: e is said to be a normal good if indifference e indifference curves associated with chang on-labor…

A: Leisure refers to the time when an employee is not working can spend the desired time in their own…

Q: What causes the marginal rate of return to change over time?

A: Introduction: Marginal rate of return can be defined as the return attained or earned by holding a…

Q: Why is NOPAT a better performance measure than net income?

A: NOPAT stands for Net Operating Profit After Tax. It refers to the organization's earnings before tax…

Q: What effect do minor deviations from the EOQ have on totalinventory cost?

A: Minor variations from the EOQ will not in general highly affect the total inventory cost except if…

Q: How can the WACC be both an average cost and a marginal cost?

A: Weighted average cost of capital is the aggregated cost of capital with respect to the weights or…

Q: building. Compute the exclusions from gross income of Arturo:

A: Properties received from father is not taxable because it is a relative  So,Immovable asset received…

Q: a) What is the gross margin now?       (b) What is the net operating income now?     (c) What…

A: Gross margin is the difference between sales and the cost of goods sold.   Net operating income is…

Q: How is the present value of a lump sum determined?

A: Definition:   Present value: It refers to the current value of the whole amount that will be…

Q: Find an expression for the marginal revenue function, s

A: Marginal revenue is the additional revenue earned from selling one more unit of output.  It is…

Q: The residual income amounted to?

A: Income is the amount remaining with the company from the Revenue after taking into consideration the…

Q: What is passive income? Explain and give examples.

A: Passive Income  An income from a source which is somewhat diverse than  a contractor or an employer…

Q: What is meant by residual income?

A: Net income: The bottom line of income statement which is the result of excess of earnings from…

Q: What are the pitfalls of franchising?

A: Franchising is a licensing that one party takes from the business owner. It allow that party to…

Q: (a) What are the percentage depletion and the cost depletion allowances?

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: What does it mean when ROI has decreased even though net income hasincreased?

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…

Q: What is the difference between gross pay and net pay?

A: Gross pay: The total amount such as salary, wages, commissions, overtime, and bonus paid by the…

Q: What is the difference between a contribution approach income statement and a traditionalapproach…

A: Contribution Approach Income Statement: Under this approach, contribution amount is the main focus…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: What is the present breakeven point in revenues?

A:

Q: How should changes in the estimated unguaranteedresidual value be handled by the lessor?

A:

Q: Surplus of income over expenses is ______________.

A: Income: Total income is sales revenue of the company.  Expenses: Expenses are those charges which…

Q: pletable amount by the estimated life in terms of units of output?

A: Depletable amount refers to the amount left after salvage value from the total cost of an intangible…

Q: In what sense is the WACC an average cost? A marginal cost?

A: Weighted average cost of capital is the firm's cost of capital which is based on proportion of each…

Q: What is meant by incremental revenue or incremental cos

A: Incremental Revenue Incremental Revenue means is an additional revenue earned from selling one…

Q: What is Profit and Loss (PNL)?

A: A business organisation is established with an objective to make money and increase the worth of the…

Q: profits and losses equally

A: Correct Answer :- B Peter  P170,000. And  john P90000

Q: Residual Income

A: The answer is as fallows

Q: What do you mean by the term "income approach"?

A: The income approach is a real estate valuation technique that is computed by dividing the…

Q: How does the residual income approach overcome this problem?

A: Definition: ROI: It is a measure of the amount of return on a particular investment with respect to…

Q: required: (d) What is the new Residual income if Proposal 1 is selected? (e) What is the new…

A: The residual income can be defined as the income earned over and above the opportunity cost of the…

Q: What are “initial direct costs” and how are they accounted for by lessees and lessors?

A: Initial Direct Costs: Initial direct costs refer to the costs that a lessor incurs directly while a…