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2 years ago

Which of the following statements is correct?

Business

1 answer:

tensa zangetsu [6.8K]2 years ago

6 0

Answer:

The correct answer is d) Assuming that implicit costs are positive, accounting profit is greater than economic profit

Explanation:

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used.

Accounting Profit

The difference between a business's revenue and its accounting

expenses.

One of the differences that can be seen, is that the economic profit will always be lesser when compared to accounting profits. When compared to economic profit, the accounting profits are only given during leap years.

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Sarah is a 50 percent partner in the SF Partnership and has an outside basis of $56,000 at the end of the year prior to any dist

Vikentia [17]

Answer:

A. $0 gain, $36,000 basis

Explanation:

In the distribution, from the information given, Sarah does not recognize any gain or loss.

However, given that

She had $56000 basis at end of year prior to distribution.

Then receives $20000 from distribution after reallocating her basis in SF to cash in amount equal to distribution

Therefore,

Her basis left = 56000 - 20000

= $36000

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3 years ago

Read 2 more answers

Kleen Company acquired patent rights on January 10 of Year 1 for $400,000. The patent has a useful life equal to its legal life

inessss [21]

Answer:

a. Particulars Amount

Patent cost $400,000

Less: Amortization for 3 years $150,000 ($400,000*3/8)

Book value at the end of year 3 $250,000

Addition during Year 4 $20,000

Total book value $270,000

Patent amortization expense for the Year 4 = Total book value / Remaining life

Patent amortization expense for the Year 4 = $270,000 / 5

Patent amortization expense for the Year 4 = $54,000

b. Adjusting Entry

Date Account titles Debit Credit

Amortization expense $54,000

Patents $54,000

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2 years ago

Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October.

Dafna1 [17]

Answer:

d. $300

Explanation:

Calculation for what its net operating income should be closest to

Using this formula

First step is to calculate the contribution margin per unit using this formula

Contribution margin per unit= Contribution margin ÷ Number of units

Let plug in the formula

Contribution margin per unit= $48,000 ÷ 4,000 units

Contribution margin per unit= $12

Second step is to calculate the contribution margin

Contribution margin = 3,500 units × $12

Contribution margin = $42,000

Now let calculate the net operating income using this formula

Net operating income = Sales - Variable cost - Fixed expenses

Let plug in the formula

Net operating income= $42,000 - $41,700

Net operating income= $300

Therefore its net operating income should be closest to $300

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2 years ago

The only way to establish a cause-and-effect relationship between two variables is to conduct a(n) ________. experiment

FromTheMoon [43]

The only way to establish a cause-and-effect relationship between two variables is to conduct an experiment.
First we state a hypothesis and then we make the experiment. The experiment should support, refute, or validate our hypothesis. It is done by making changes in one variable and observing is that might lead to changes in another variable (cause-and-effect).

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2 years ago

In December, a company signed a contract with a regular customer to sell products for $100,000. In January, the company received

REY [17]

Answer: In January, when the products are delivered.

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1 year ago