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aliina [53]
3 years ago
8

Larry owns a successful business called Super Car-Hire. He plans to sell it to Bob. Bob assumes that he can keep up the high rev

enues if he can plan and execute the mission of the business well. Which of the following basic accounting concepts is reflected in Bob's assumption?
A. The business entity ideaB. The going concern expectationC. The accounting equationD. The revenue and expense premise
Business
1 answer:
Lubov Fominskaja [6]3 years ago
6 0

Answer:

B is the correct option.

Explanation:

This principle follows the assumption that a company will remain in business in the future. It means that the business will not have to halt operations or to liquidate the assets in the future. According to this principle, the accountant postpones the recognition of some expenses till a later period, and in that period the company will be in business will be effectively using the assets. It is a very important concept, without this, the company will not be able to prepay the expenses.

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Which strategy is developed to pull together the various activities and competencies of each department so that corporate and bu
Alik [6]

Answer: E) functional strategy

Explanation:Functional strategies are operational strategies. They are short-term goal-directed decisions and actions of the organization's various functional areas.

The role of functional strategy is to work together to achieve business and corporate strategies. They are where competitive and corporate strategies get implemented.

4 0
3 years ago
Consider a firm making production decisions in the short run. Select the statement(s) that must be correct. Choose one or more:
k0ka [10]

Answer:

A). Average total cost will always exceed average variable cost.

C). Average fixed cost cannot increase with output, at any level of output

Explanation:

  • In the short term, a company that increases its profits will increase production if the marginal cost is less than the marginal income.
  • Reduction in production if marginal cost exceeds marginal income. Continue production when the average variable cost is less than the unit.        
  • so correct answer is A and C
4 0
3 years ago
An Illinois consulting firm had accounts receivable of $70,000 on December 31, 2015. During year 2016, the consulting firm colle
Leya [2.2K]

Answer:

Revenue - 2016 = $60000

Explanation:

The accrual basis of accounting which follow the accrual principle states that the revenues and expenses for a period should match and should be recorded in the periods to which they pertain to. This means that even if a revenue has been earned and not yet received in cash, it will be recorded in the period in which it is earned.

To calculate the firm's revenue, we will use the following equation.

Revenue for the period = Closing Balance of Accounts receivable + Receipts - Opening Balance of Accounts receivable

Revenue - 2016 = 100000 + 30000 - 70000

Revenue - 2016 = $60000

4 0
3 years ago
________ attacks take advantage of flawed human judgment by convincing the victim to take actions that are counter to security p
PolarNik [594]

Answer:

The answer is Social Engineering

Explanation:

_SOCIAL ENGINEERING_______ attacks take advantage of flawed human judgment by convincing the victim to take actions that are counter to security policies.

5 0
3 years ago
John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of
andre [41]

Answer:

A. Increasing Marginal Utility  B.  Yes, John will spend

Explanation:

Total Utility is the total satisfaction from all units of consumption

Marginal Utility is additional satisfaction from an additional consumption unit.

Coca Cola    TU         MU

1                   10         10

2                   25        15 (25-10)

3                   50         25 (25-15)

John's Marginal Utility is increasing each time in succeeding unit over its preceding unit.

b. John having $3, price of a coke = $1: will be willing to spend 1st 2nd & 3rd dollar on coke consumption because - its gainful for him (MU > P) each time.

8 0
3 years ago
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