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padilas [110]
1 year ago
12

Why is the accrual-based income statement superior to a cash-based income statements in measuring profitability? (Select all tha

t apply.)
It reflects well the operating activities of the business and the best measure of a company’s profitability during the period.

It reports the expenses incurred in generating the revenues regardless of when the cash was paid.

It reports the revenues generated regardless of when the cash was collected.
Business
1 answer:
Leno4ka [110]1 year ago
3 0

The accrual-based income statement superior to a cash-based income statements in measuring profitability because It reports the expenses incurred in generating the revenues regardless of when the cash was paid.

What distinguishes the accrual basis of accounting from the cash basis of accounting?

When money is received or spent, it is recorded as revenue using the cash foundation of accounting. When using the accrual basis of accounting, revenues are recorded as they are earned and expenses as they are incurred.

What is an income statement with an accrual basis?

Accounting on an accrual system records revenue and corresponding costs as they are incurred, rather than when money is exchanged. Accordingly, businesses report revenue when it is earned rather than when it is received.

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What soft skills do employers request when they list job openings in your field?Your Task. Individually or in teams, check the l
RSB [31]

Answer:

In the Present world, all the organizations need to procure individuals who don't just have the necessary specialized aptitudes to do things but who likewise have other delicate abilities like uplifting disposition, capacity to organize work and so on. Upon our investigation of discovering how and what the organizations truly need from the workers, it was seen that all the organizations laid extraordinary accentuation on having delicate abilities in any individual.  

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3 0
2 years ago
Alternative A would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and var
stepladder [879]

Answer:

From zero to 33 boats option B would be best

Explanation:

Assuming the first alternative (A)is 250,000 fixed and 500 per boat

second (B) 2,500 cost per boat

and third (C) 50,000 fixed and 1,000 cost per boat

We want' to know at which level B would be the best option

we want to know when alternative C or A have a cost of 2,500 or lower:

A:

500 + \frac{250,000}{Q} = 2,500

\frac{250,000}{2,500 - 500} = Q

Q = 125

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B

C:

1,000 + \frac{50,000}{Q} = 2,500

\frac{50,000}{2,500 - 1,000} = Q

Q = 33.33

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B

From zero to 33 boats option B would be the best of the three options

6 0
3 years ago
Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective a
lara [203]

Answer:

Denver Company

Income Tax Expense for the second quarter:

Pre-tax quarter income = $140,000

Estimated tax rate = 24%

Tax Expense = $140,000 x 24%

= $33,600

Explanation:

a) Data:

Quarter    income before tax        estimated tax rate

first                 $100k                          30%

second           $140k                          24%

b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter.  The resulting calculation shows the estimated income tax expense that has to be settled by Denver.  If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.

7 0
3 years ago
It is theorized that the price per share of a stock is inversely proportional to the prime​ (interest) rate. In January​ 2010, t
Zanzabum

Answer:

price per share in March is $96

Explanation:

given data

January price per share = ​$193.04

January prime rate = 2.75%

march prime rate = 5.50​%

to find out

What was the price per share in March

solution

we know that here price is proportional to prime rate

Price ∝ \frac{1}{rate}   ........1

so price = k ×  \frac{1}{rate}      ...............2

k is constant here

so put all value for january

193.04 = k ×  \frac{1}{2.74%}

k = 5.28

so for  march price per share will be by equation 2

price = 5.28 ×  \frac{1}{5.50%}

price = 96

so  price per share in March is $96

3 0
3 years ago
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AveGali [126]

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5 0
1 year ago
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