What is the best definition of profit?

1 answer:

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Profit can be best defined as gain, especially when achieved by increasing the price of goods so the money paid by consumers outweighs the cost for the producer, leaving a sizeable return on what has been paid out. Once expenses and costs have been covered, profit is the money left over.

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Catamount Company had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a distr

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Answer:

D. No loss recognized and a reduction in E&P of $200,000

Explanation:

Given that:

Current and accumulated E&P : $500,000
A distribution of land to its sole shareholder: $200,000
E&P basis to Catamount : $250,000

From that, we can see that the current and accumulated E&P is greater than its distribution of land so no loss would be reported so there will be reduction in earning and profits of the company of $200,000.

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The eventual result in the U.S. v. Microsoft case was: a. Bill Gates was sentenced to one year in prison for violations of the S

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Answer: C. The court concluded that Microsoft violated the Sherman Act

Explanation: The case between United States v. Microsoft Corporation which took place at the

United States Court of Appeals for the District of Columbia Circuit during the period February 26–27, 2001 and was finally decided June 28, 2001.

It was decided by the District Court that Microsoft violated the Sharma Antitrust Act of 1890.

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Wu Production Company, which uses activity-based budgeting, is in the process of preparing a manufacturing overhead budget. Whic

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Answer:

Option which would likely appear on that budget will be:

Batch level costs: production setup.

Explanation:

Here the company uses activity based budgeting is a management accounting tool which new year budget is only seen by not considering the previous year records.

Activity based budgeting which is a budgeting method in which firstly the overhead costs are being calculated and the the budgets gets created.

Batch-level cost is a cost which is not associated with any given specific individual units but is associated with a group of units.

For example, to set up a production run the cost incurred is associated with the batch of goods that are produced subsequently.

Another example can be be procurement costs. The expenses associated with the procurement costs include the ordering of direct materials, paying suppliers and receiving goods.

Since all of the expenses are related to the orders placed numbers, they must be allocated not to an individual product but to group of unit.

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100% of the fee paid

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Because of the Sarbanes-Oxley act, accountants must maintain financial documents and audit work for five years.
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