For his first year of business, Bob’s accounting profit was $5,000 (5,000 = 80,000-67,000-4%*200,000), and his economic loss was $35,000 (-35,000 = 5,000 - 40,000) based on the information shown on the question above. The accounting profit is a recorded profit based on every business transaction occurring in a one-year period. The economic profit (loss) is a difference between a revenue and its opportunity cost.
The kind of data source is not known. Results may be invalid because some internet websites don’t upgrade their formats to the latest one. A lot of important details may also be missing from internet sites since some of their formats are incorrect while their data cannot be used as resource in some statistic software.
Answer:
The correct answer is option D) A Master Budget is is a substitute for the management functions of planning and coordination.
Explanation:
A master budget is not the initial budget a company makes, It is the final budget that incorporates all other specific budgets such as financial budget, operational budget, production budget, marketing budget and ore.
It serves a central planning tool that a management team uses to direct the activities of a company, set targets and execution strategy.
It also provides a framework to judge performance for respective departments.
Answer:
$6,540
Explanation:
Given:
accounts receivable of $238,000
allowance for uncollectable accounts of $600 (credit)
Also, the allowance for uncollectible accounts should be 3% of accounts receivable.
Therefore the amount of the adjustment for uncollectible accounts would be
= 3% of $238,000 - $600= $(7140-600)= $6,540
