Costs and benefits must be put in common terms if they are to be compared.

hammer [34]

Because NDP stands for National Domestic Product which means everything that is produced in the country e.g. the US, and abroad from companies that are American.
Whereas, GDP is just from goods and services made in the country and in its borders.

6 0

3 years ago

The following does not describe the matching principle

Marizza181 [45]

Answer: The correct answer is c. Expenses are reported on the income statement when cash is paid.

Explanation: Matching principle states that expenses are matched with the related revenue in the same period, that is, expenses incurred to generate related revenue are recorded during the same time interval the related revenue is recorded in order to show the true and fair position of the profitability of the company.

Based on the above definition, only option C does not align with the matching principle because expenses should be recorded in the income statement when incurred and NOT when cash is paid. If it is recorded when cash is paid, it means cash basis of accounting is being applied.

8 0

3 years ago

A consultant predicts that there is a 25 percent chance of earning $500,000 and a 75 percent chance of earning $100,000. The exp

antiseptic1488 [7]

Answer:

$173,205

Explanation:

According to the scenario, computation of the given data are as follows:

Given data:

Earning (X1) = $500,000

Chances of X1 (Y1) = 25%

Earning (X2) = $100,000

Chances of X2 (Y2) = 75%

Expected Profit (Z) = $200,000

Formula for solving the problem are as follows:

Standard deviation = [ (X1 - Z)^2 × Y1 + (X2 - Z)^2 × Y2 ]^1/2

By putting the value in the formula, we get

Standard deviation = [ ($500,000 - $200000)^2 × 0.25 + ($100,000 - $200,000)^2 × 0.75 ]^1/2

= [ $22,500,000,000 + $7,500,000,000 ]^1/2

= ($30,000,000,000)^1/2

= $173,205.08 or $173,205

Hence, $173,205 is the correct answer.

6 0

3 years ago

Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or (c) constraint.

german

Answer and Explanation:

The identification of the following terms as an accounting principle, assumption or constraint is

1 Business entity = Assumption

2. Measurement = Principle

3 Cost-benefit = Constraint

4 Revenue recognition = Principle

In this way the identification of the accounting terms would be done

The same is relevant too

7 0

3 years ago

In your company's management development program, there was a heated discussion between

GREYUIT [131]

Answer:

The most sensible position is to understand that theory, while not practical in itself, can be immensely helpful when dealing with pratical matters.

This is because theory gives you a sound conceptual foundation that can be used to analyze the practical context, and approach it with the best possible practical solutions.

Without theory, managers have to rely too much on intuition, which can often fail.

3 0

3 years ago