the right answer is TRUE, i got it wrong for putting it as false
The correct option is - 3 ( "Money spent last month repairing a damaged front fender" )
<u>Explanation:</u>
Sunk cost means the cost that has been already incurred in the past and cannot be recovered. This implies that sunk costs should be not be considered in future decision making of the project, because these are the cost that can not be changed with under taking the project or not. The significant aspect about this costs is that they shouldn't be allowed to influence subsequent decisions.
With the theatre ticket example, there's an opportunity to leave the theatre at the intermission and spend the rest of your evening doing something else more enjoyable. If you don't like the play then you might decide to leave, but the sunk cost of the ticket shouldn't influence your decision to stay or leave.
Answer:
Bal. June 30 Receipts Disbursements Bal. July 31
Balance per Bank 355,001 835,846 684,747 506,100
Deposit in Transit
June 30 86,899 -86,899
July 31 51,240 51,240
Outstanding Checks
June 30 42,690 -42,690
July 31 73,340 73,340
Unrecorded Receipts -150,000 -150,000
Unrecorded Disbursement -150,000 -150,000
Balance per Books 399,210 650,187 565,397 484,000
Answer:
The correct answer is A) be subtracted from net income
Explanation:
The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.
It depends on the account if it is added or subtracted to net income.
A gain from the sale of equipment is subtracted from net income
Its probably C. The other answers are highly unlikely.
