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3 years ago

As long as there are costs, profit will be greater than profit.

Business

1 answer:

gizmo_the_mogwai [7]3 years ago

6 0

The answer is: As long as there are economic costs, accounting profit will be greater than economic profit.

Economic costs are defined as the opportunity cost incurred when processing inputs for production, while economic profit is defined as the combination between the revenue that a business entity generates and the monetary and opportunity costs that it pays.

Accounting profit, on the other hand only accounts for the monetary costs that a business entity has to pay and the revenue that it generates.

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An account is defined as a record of the business activities related to a particular item. True or false?.

Natalka [10]

An account is defined as a record of the business activities related to a particular item. The given statement is true.

Business activities can be divided into three categories: operating, investing, and financing. The cash flow statement includes a list of the cash flows that were generated and used by each of these operations. Net income on an accrual basis is supposed to be reconciled to cash flow in the cash flow statement.

Manufacturing, storage, accounting, sales, mergers and acquisitions, the issue of securities, etc. are some examples of business activities. The prompt completion of these tasks enables the businesses to survive and compete in the market.

Learn more about business activities here

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3 0

1 year ago

The focus of management accounting is onA) tax preparation.B) external reporting.C) internal reporting.D) auditing.

Studentka2010 [4]

Answer: The focus of management accounting is on "C) internal reporting.".

Explanation: It could be understood as the concept of management accounting as that economic information destined to the internal users of the company and which is mainly responsible for the analysis of the costs of the company, helping to make management decisions and business control.

5 0

3 years ago

The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is pri

dybincka [34]

Answer:

Bond Price = $951.9633746 rounded off to $951.96

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment, annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.

Coupon Payment (C) = 1000 * 10% = $100

Total periods remaining (n) = 3

r or YTM = 12%

Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12] + 1000 / (1+0.12)^3

Bond Price = $951.9633746 rounded off to $951.96

7 0

3 years ago

When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than

inysia [295]

Answer: Air travel is a normal good and vacation travel by car is an inferior good

Explanation: What is a normal good and what is an inferior good.

Normal goods are those goods for which the demand rises as consumer income rises. While inferior goods are goods whose demand increases when consumer income decreases.

This therefore means that the demand of inferior goods is inversely related to the income of the consumer.

From the question above, we can say that car trips are inferior goods while the air travel are normal goods.

3 0

4 years ago

Read 2 more answers

A monopolist is a price maker because

lapo4ka [179]

Answer:

sorry just answering to get points

Explanation:

sorry just answering to get points

6 0

4 years ago

As long as there are ____ costs, ____ profit will be greater than ____ profit.

As long as there are costs, profit will be greater than profit.