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2 years ago

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

Business

1 answer:

gizmo_the_mogwai [7]2 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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The following balance sheet information was provided by Western Company: Assets Year 2 Year 1 Cash $ 4,000 $ 2,000 Accounts rece

ICE Princess25 [194]

Answer:

The company's average days to collect receivables is 18.25 days.

Explanation:

For computing the company's average days to collect receivables, first we have to calculate the account receivable turnover ratio. The formula is shown below

Account Receivable Turnover ratio = Net credit Sales ÷ Average accounts receivable

where,

Net credit sales is given

And, the average accounts receivable = (Year 1 + Year 2) ÷ 2

= ($15,000 + $12,000) ÷ 2

= $13,500

So, Account Receivable Turnover ratio = $270,000 ÷ $13,500 = 20

Now, average days to collect receivables = Number of days in a year ÷ Account Receivable Turnover ratio

= 365 ÷ 20

= 18.25 days

Hence, the company's average days to collect receivables is 18.25 days.

7 0

3 years ago

During the current year, Ecru Corporation is liquidated and distributes its only asset, land, to Kena, the sole shareholder. On

statuscvo [17]

Answer:

c. Kena recognizes a gain of $30,000

Explanation:

cash 650,000 debit

land 250,000 credit

gain at disposal 350,000 credit

liabilities 500,000 debit

cash 500,000 credit

Then, the company will close all account and leave kena account with a capital of 150,000 to mathc the remaining 150,000 cash

as her basis is 120,000 there will be a gain for 30,000

4 0

2 years ago

I'm not sure about this, can anyone help me?

Nutka1998 [239]

Answer: I think it would be C i'm not sure why don't you try that and let me know okay

Explanation:

6 0

3 years ago

Read 2 more answers

The Overland Company is preparing its cash budget for the month of June. The following information is available concerning its a

Alex777 [14]

Answer:

total estimated cash collections = $300,050

Explanation:

estimated collections during June:

collections of credit sales from May = $257,000 x 65% = $167,050

collections from credit sales before May = $50,000

collections from credit sales during June = $332,000 x 25% = $83,000

total estimated cash collections = $300,050

the write offs and the bad debt provisions are not included in this calculation.

8 0

2 years ago

Over the last four years, a stock has had an arithmetic average return of 8.8 percent. Three of those four years produced return

m_a_m_a [10]

Answer:

Geometric Average return = 7.83%

Explanation:

First we need to find the missing value of data using Arithmetic mean formula

Arithmetic Mean = Sum of value / No of values

8.8% = Sum of Values / 4

Sum of Values = 8.8% x 4

Sum Values = 35.2%

Using Sum of Values we minus the remaining values in order to get the missing value of the data.

35.20% - 16.3% - 10.2%-(14.1%) = 22.80%

In order to get Geometric mean value we use geometric mean formula

G.M = 4 Sqrt(16.3% x 10.2% x -14.1% + 22.80%)

Geometric Mean = 7.83%

6 0

3 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.