The condition for which revenues are recognized even when the cash is collected in a different accounting period is;
- Services are provided even if cash has not yet been collected, in cases of accrual basis accounting
<h3>Revenue recognition</h3>
Two major forms of revenue recognition exist;
- When Cash is collected from customers. This is the case when the organisation uses cash basis accounting
- When services are provided even if cash has not yet been collected. This is the case when the organisation used accrual basis accounting
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The correct answer to this open question is the following.
Although there are no options attached we can say the following.
An oligopoly can cause market failure because companies that form the oligopoly do not allow other companies to enter and compete in the market. This action limits consumers to choose from a variety of options, including quality, the best price, and service.
Often, oligopoly associates the strongest or more powerful companies in order to wipe out other minor competitors. They want to establish a dominant presence that affects prices and consumers participation.
Oligopoly practices result in inefficiency and instability in the market. That is why oligopolies are not good for the economy.
The automobile industry is mostly associated with an oligopoly.
When a market is controlled by just a few numbers of companies, but none of them is above the others, we are talking about an oligopoly. They can collude intentionally or not, to establish prizes and to not let other companies compete with them.
The income elasticity of demand for pasta is -0.4 based on the data from the question above. The answer to this problem can be solved using the elasticity formula which stated as ED = Q percent change / I percentage change where ED is the elasticity of demand, Q is the quantity of the product, and I is the consumer's income<span>. (Calculation: -4%/10%=-0.4)</span>
Answer:
Net profit is more important.
Explanation:
Gross profit is the difference between revenue and costs of goods sold, which means you can have a positive gross profit but still because of other costs not be profitable. Whereas Net profit is the bottom line or profit after all the costs have been deducted from revenue. Net profit is more important because it takes into account all the costs and how much money the company is left with after all its expenditures where as gross profit only measures the difference between cost of goods sold and revenue. A company may have high gross profit because of low cost of goods sold but its interest payments maybe too high because of which it might not be making any net profit, so we cannot conclude much about success and profitability by only looking at gross profit.
