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Anarel [89]
3 years ago
15

Under the accrual basis of accounting, which of the following statements is true? I. Reported net income provides a measure of o

perating performance. II. Revenue is recognized when cash is received, and expenses are recognized when payment is made. III. Cash inflows are recognized when they are received, and cash outflows are recognized when they are made.
Business
1 answer:
mamaluj [8]3 years ago
7 0

Answer:

III. Cash inflows are recognized when they are received, and cash outflows are recognized when they are made

Explanation:

Accrual basis states that transactions should be recorded when they are entered into , irrespective of whether cash settlement (inflow/ outflow) take place or not .

So: Expenses are recognised when they are incurred, revenue is recognised when it is realised (earned). And cash inflow is recorded when cash is recieved, cash outflow is recorded when cash is paid.

Ex : 'Rent due but not paid' will still be recorded as liability expense 'Rent outstanding'. And cash transaction will be recorded when the cash settlement (payment) of the liability is done .

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A manager in your organization just received a special order at a price that is "below cost." The manager points to the document
Alex777 [14]

Answer:

So, from a short-run perspective, so long as the sale does not affect other output prices or normal sales volume, a "below cost" sale may result in a net increase in income so long as the revenues cover the differential costs.

However, in the long run all costs must be covered or management would not reinvest in the same type of assets.

If the company must continually sell below the full cost of production then it will most likely get out of that particular business when it comes time to replace those facilities.

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3 years ago
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic l
Kobotan [32]
I am not sure what are you asking please explain more
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3 years ago
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Luis works as a marketing manager for a consumer products company. He feels strongly about the product lines he manages and is d
Katyanochek1 [597]

Answer:

Luis can be classified as actively engaged.

Explanation:

Members of an organization can be classified according to their level of engagement with the organization:

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3 0
3 years ago
A production possibilities frontier with a bowed-outward shape indicates a. increasing opportunity costs as more and more of one
Arada [10]

Answer:

a. increasing opportunity costs as more and more of one good is produced

Explanation:

A production possibility frontier is a curve that shows the two combinations of goods an economy can produce given that its resocurces are fully employed.

The production possibility curves is bowed outwards because of increasing opportunity costs as more and more of one good is produced.

If more of one good is to be produced, more of the second good would be given up to increase the production of the first good.

The attached image is the graph of a production possibility frontier. At point A, the maximum amount of good X is produced with zero quantity of good Y. To increase production of good Y and move to point B, some quantities of good X would be given up. To further increase the production of good Y and move to point C, even more quantities of good X would be given up.

I hope my answer helps you

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I’m guessing the answer is D
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