Answer:
Statement 1: Explicit cost
Statement 2: Implicit cost
Statement 3: Implicit cost
Statement 4: Explicit cost
Accounting profit = Sales revenue - Explicit cost
= 722,000 - (422,000 + 268,000)
= $32,000
Economic profit = Sales revenue - (Explicit cost + Implicit cost)
= 722,000 - (422,000 + 268,000 + 2,000 + 21,000)
= $9,000
Answer:
(B) adding all of the debits, adding all of the credits, and then subtracting the smaller sum from the larger sum
Explanation:
While calculating the closing balance of any account,
There includes two possibilities that the account might have debit balance or the account might have credit balance. And for computing this:
All the debits shall be accumulated and then their total shall be computed.
Similarly, all the credits shall be accumulated and their total shall be done.
Which ever is more then the account will have that nature of balance, accordingly the smaller shall be deducted from the larger one and the larger one will decide the nature of balance whether debit or credit.
Answer:
D) every company is trying to implement them and hence it does not make a company different from others
Explanation:
The problem when something too popular, is that everybody is doing the same thing. This applies to individuals, businesses and even governments.
Total quality, benchmarking and reengineering were seen as complete and radical innovations during the 1980s and 1990s, and back then they really made a difference. The problem is that every company is trying to do the same now, and what makes a company successful is being different and working better than the rest.
The correct answer is d). We have that government spending can also give way to products and services, just like private enterprises, thus there is no double-counting there. Services such as haircuts have their own value, which are separate from any other material products. Finally exports are also not counted twice; Raw materials though would be counted twice if we counted them for the GDP since their value is incorporated in the value of the final product. For example, we cannot count towards the GDP the value of rubber production in a country since then, if we counted the value of the tires too, we would count the value of the rubber in the tires twice (one time as rubber/ one time as part of the tire).
Answer:
The answer is:
Disagree
The matching principle is violated
Explanation:
The order of a customer worth $40, 000 was received at year end. However, the merchandise will only ship in the year following the fiscal year. When goods are shipped, revenue is recognised on shipping the goods or receipt of the goods by the customer. According to the information provided, merchandise will only be shipped in 2021, therefore the customer will only receive the goods in 2021. Given this information, recognising revenue in the current period would be an incorrect treatment of the transaction and contravene the matching principle. This principle indicates that revenue and the costs associated with the revenue should be recognised in the same period.
The sale should not be recognised in 2020 because the goods' delivery and the costs incurred in delivering those goods will only be incurred in 2021. No indicated payment, cash or otherwise, was received in lieu of this transaction. Recognising this sale in the income statement and the associated asset in the statement of financial position could be misconstrued as an attempted enhancement of Pastel Inc.'s financial position for the 2020 fiscal year end.
