Answer:
Both of these answers are the primary differences.
1.The accrual basis records revenues when services or products are delivered and records expenses when incurred.
And
2.The cash bases records revenues when cash is received and records expenses when cash is paid.
Explanation:
Under the cash basis, entries in the book of accounts are made when cash is received or paid and not when the receipt or payment has become due.
While
Under the accrual basis, however, revenues and costs are recognised in that period in which they occur rather when they are paid
Accrual basis is more generally accepted than cash basis, as it gives a truer image of enterprise performance in an accounting period.
Answer:
$34,645
Explanation:
Given that,
sales = $318,400
costs = $199,400
depreciation expense = $28,600
interest expense = $1,100
Tax rate = 35 percent
Dividends paid = $23,400
Profit before tax:
= Sales - cost - Depreciation - Interest
= $318,400 - $199,400 - $28,600 - $1,100
= $89,300
Profit after tax:
= Profit before tax (1 - Tax rate)
= $89,300 (1 - 0.35)
= $89,300 × 0.65
= $58,045
Therefore, the addition to retained earnings
= Profit after tax - Dividend paid
= $58,045 - $23,400
= $34,645
Answer: Option (d) is correct.
Explanation:
Option (d) - Raises the quantity of labor supplied and reduces the quantity of labor demanded.
When a union raises the wage above the equilibrium level, this will lead to increase the quantity of labor supplied because at this wage more labors wants to work and take the advantage of the higher wages.
At the same time, quantity demand for labor decreases in the economy. This is due to the higher wages which increases the firm's cost of production. So, at this wage firm's demand for labor decreases.
A)The profits for common stock owners come before payment to employees, suppliers, government and creditors.
