Answer:
False
Explanation:
The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.
This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.
The cash flow is computed both by Direct and Indirect methods.
In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.
<span>Producers of wood pulp often forward integrate into the production of paper in order to exploit technical economies. By also owning paper making plants they can avoid costs of removing waste, and better use it in order to make even more profits.</span>
Except:
photographer..video equipment installer
Answer:
INCREASE the consumption of Pepsi and REDUCE the consumption of Hamburger
Explanation:
Based on the information given we were told that Bill uses his whole budget to purchase the following :
5 cans of Pepsi
3 Hamburgers per week
And the following were the price:
Pepsi costs $1 per can
Hamburger cost $2
Bill marginal utility:
Pepsi 4
Hamburgers 6
Based on the above details this means that Bill could increase his utility by INCREASING Pepsi consumption and REDUCING hamburger consumption reason been that 5 cans of Pepsi costs $1 per can which will gives us income of $5 ($5×1) while 3 Hamburgers per week cost $2 which will give us income of $6 ($3×2) which typically means that the Hamburgers has more income that Pepsi.
Secondly since the marginal utility for Pepsi is 4 while that of Hamburgers is 6 which means that Hamburgers has higher MARGINAL UTILITY than that of Pepsi because the consumption of Hamburgers is higher than the consumption of Pepsi.
Therefore the best thing that Bill could do in order to increase his Pepsi utility is for Bill to increase Pepsi consumption and reduce hamburger consumption.
