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1 year ago

when revenue is greater than total expenses, resulting in a net income, the income summary account has a

1 answer:

8 0

The Income Summary account has a credit balance when revenue exceeds total expenses, producing a net profit, as indicated by the T account.

<h3>The outcome is net when revenue exceeds expenses.</h3>

A corporation will record a net profit if its revenue exceeds its costs. It will record a net loss if its expenses outweigh its income.

<h3>What happens if total revenue exceeds total expenses?</h3>

The business makes a net profit when revenues are higher than costs.

<h3>If the revenue for an accounting cycle is more than the expenses, what is the final entry for the income summary account?</h3>

The closing entry involves debiting income summary and crediting retained earnings if a company's sales exceed its expenses. If the period results in a loss, the income summary account must be credited and retained earnings must be debited.

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Should a firm shut down if its weekly revenue is $1 comma 000, its variable cost is $600, and its fixed cost is $800, of w

kifflom [539]

Answer: The correct answer is "C. produce because revenue of $1 comma 000 is greater than fixed costs.".

Explanation: The firm should produce because the revenue of 1000 is enough to cover the fixed costs and part of the variables (1000 - 800 - 600 = (-400)) so that the loss is less than if it stopped producing despite the avoidable costs (800 - 350 = 450) since if it stopped producing it would have a loss of $ 450 and producing it would have a loss of $ 400.

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3 years ago

Which has a higher flow rate? 10 customers arriving over two hours or 10 customers arriving over three hours?

Tcecarenko [31]

The one that gives a higher flow rate is: 10 customers over 2 hours. The flow rate is 5 customers per hour.

Flow rate is defined as the number of flow units that pass through the business process per unit time.

The flow unit can be money, customers, products, parts, services, etc.

Example of flow rate is number of customers serviced per hour, number of parts produced per minute, etc.

From the definition, the flow rate can be expressed as:

Flow rate = number of flow unit / time interval

There are 2 scenarios in the given problem.

Scenario 1:

Flow unit = 10 customers

Time interval = 2 hours

Hence, the flow rate in scenario 1 = 10/2 = 5 customers per hour

Scenario 2:

Flow unit = 10 customers

Time interval = 3 hours

Hence, the flow rate in scenario 2 = 10/3 = 3.33 customers per hour

By comparing the above scenarios, the one that gives higher flow rate is scenario 1, 10 customers over 2 hours.

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4 0

2 years ago

Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an

Jet001 [13]

Answer:

The answer is: A) The new machinery can be depreciated using the same method or different method than the previously purchased machinery

Explanation:

Their is no rule that requires a business to always use the same depreciation method for the assets they purchase.

The most common depreciation methods include:

Straight-line.
Double declining balance.
Units of production.
Sum of years digits.

Depending on the asset a business may consider one depreciation method that better suits it, and another depreciation method for their other assets.

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3 years ago

A random experiment with three outcomes has been repeated 50 times, and it was learned that E1 occurred 20 times, E2 occurred 13

enot [183]

Answer:

$P(E1)=\frac{20}{50}=0.4$

$P(E2)=\frac{13}{50}=0.26$

$P(E3)=\frac{13}{50}=0.34$

I used the relative frequency method

Explanation:

To solve this question we can use the relative frequency to find out each probability. The relative frequency is the ratio of the occurrence of each event and the total number of outcomes.

Here the experiment has been repeated 50 times, so that is the total number of outcomes and the denominator. There are 3 possible events E1, E2, and E3, so we can calculate the ratios to get the probabilities

Event E1 occurred 20 times of the 50: $P(E1)=\frac{20}{50}$