Answer:
B. the cash that a firm generates from its normal business activities using its existing assets
Explanation:
It represent the cash from the main activity. It is a good indicator wether the company needs external financing or it can sustain his grow with own funds.
It is stated in the cash flow statement. along with investing and financing activities.
Answer and Explanation:
Heidi Ganahl is explaining the preparing aspect of the management process. The first management role is the planning component which is the management process.
Heidi, before the new franchise is created, will have to clarify the performance standards and metrics. It will need to include detailed, but easy-to-understand plans, involving strategic planning, to ensure continuity between the new owner and the entire franchise.
A. credit transaction
Your bank would pay the bill then either charge you for using their money or remove it from your "checking account" depends on the way you have it set up
I was stuck on the same thing in my class test. I ended up failing but if I get the answers to it I’ll totally send them to you!!!
Answer:
a)
1. Explicit cost
2. Implicit Cost
3. Implicit Cost
4. Explicit cost
b)
Accounting Profit is $62000.
Economic Profit is -$3000. (a loss of $3000)
Explanation:
a)
Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.
Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.
1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>
2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>
3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>
<u />
4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>
<u />
b)
Accounting profit = Total Revenue - Total explicit cost
Economic profit = Total revenue - (Total Explicit Cost + Total Implicit Cost)
Accounting Profit = 793000 - 430000 - 301000 = $62000 profit
Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss
