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2 years ago

Recognizing something as a revenue instead of as a liability has a positive effect on the reported financial statements because:

Business

1 answer:

Pani-rosa [81]2 years ago

4 0

Revenue and liability has influence on reported financial statements because;

it understates liabilities
it overstates revenues

<h3>What is revenue and liability?</h3>

Revenue serves as the money that is been generated by the company as a profit while a liability serves as future sacrifices of economic benefits.

However, recognizing something as revenue instead of liability is dangerous because it can results in overstated net income.

Learn more about revenue at;

brainly.com/question/25855858

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Describe Classical Theory. To do so, begin by describing its approach to the circular flow model and indicate its assumption abo

gogolik [260]

Answer and Explanation:

Classical Theory:

Classical theory states that the economy is free flowing and that there should be no outside intervention. It states that the prices and wages move up and down freely. During good times the prices and wages tend to increase and during bad times or recession the prices and wages are adjusted accordingly to downwards.

Another vital information pertaining to classical theory is that it states: economy is always at full employment level of output. Which means that the aggregate supply curve is vertical and this implies that the increase in aggregate demand or a decrease in aggregate demand will lead to increase or decrease respectively. However, the output will remain same in the economy when it comes to the classical approach.

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3 years ago

If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:

Ira Lisetskai [31]

<span>spending will increase:
consumption by $80 billion.</span>

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3 years ago

Present value computation kerry bales won the state lottery and was given four choices for receiving her winnings. receive $400,

Mekhanik [1.2K]

Option 1: PV = $400,000
Option 2: Receive (FV) $432,000 in one year

PV = FV(1/(1+i)^n), where i= 8% = 0.08, n = 1 year

PV = 432,000(1/(1+0.08)^1) = $400,000

Option 3: Receive (A) $40,000 each year fro 20 years

PV= A{[1-(1+i)^-n]/i} where, n = 20 years

PV = 40,000{[1-(1+0.08)^-20]/0.08} = $392,725.90

Option 4: Receive (A) $36,000 each year from 30 years
PV = 36,000{[1-(1+0.08)^-30]/0.08} = $405,280.20

On the basis of present value computations above, option 4 is the best option for Kerry Blales. This option has the highest present value of $405,280.20

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3 years ago

The break-even quanity for a certain kitchen appliance is 6000 units. The selling price is $10 per unit, and the variable cost i

Alinara [238K]

Answer:

The correct answer is $36,000.

Explanation:

According to the scenario, the given data are as follows:

Break even quantity = 6000 units

Selling price = $10 / unit

So, Sales cost = 6,000 × $10 = $60,000

Variable cost = $4 / unit

So, total variable cost = 6,000 × $4 = $24,000

So, we can calculate the fixed cost by using following method:

Fixed cost = Sales cost - Variable cost

By putting the value,

Fixed cost = $60,000 - $24,000

= $36,000.

Hence, the fixed cost is $36,000.

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3 years ago

Growing chocolate is important to West African economies but they do not make as much money as the multinational companies that

kupik [55]

Answer: The name of the ghanaian brand is "57 chocolate"

Explanation:

57 Chocolate belongs to two sisters

Priscilla and Kimberly Addison, the creators of 57 chocolate, made in Ghana by Ghanaians, for Ghanaians. Their chocolates which come in dark, milk, white chocolate, mocha latte and bissap flavours are uniquely packaged in adinkra symbol shapes. and is the pioneer bean to bar chocolate business in Ghana. This venture uses resources grown within the country to create delicious chocolate

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