Just going on a whim:
primary beneficiary?
Answer:
True
Explanation:
Unlike Accrual basis accounting the cash basis method of accounting requires revenue to be recognized when performance obligations are settled rather than when they are incurred.
The major difference between cash and accrual accounting is in the timing of when transactions are taken account of. Whereas Accrual accounting recognizes transactions when they occur (i.e. expenses when they are incurred and revenue when they are earned) Cash accounting recognizes revenue and expenses only when cash is paid.
Answer:
A.
2015 37.7
2016 12.9
B. Yes
Explanation:
Computation of the times interest earned ratios for 2016 and 2015
First step is to find the EBIT
EBIT: 2016 $ 2015 $
Gross profit 44,500 58,400
Less Selling, General and Administrative expenses (36,900) (38,800)
EBIT 7,600 19,600
Second step is to compute the times interest earned ratios for 2016 and 2015 using this formula
Time interest earned = EBIT / Interest expense
Let plug in the formula
Time interest earned 2016 2015
EBIT $7,600 $19,600
÷Interest expense $590 $520
=Time interest earned 12.9 37.7
Therefore the Time interest earned will be :
2015 37.7
2016 12.9
2. Yes Computer Tycoon generate sufficient net income in both 2015 and 2016 before taxes and interest in order to cover the cost of debt financing.
Answer:
If Jeff's wage rate rises, he decides to work more hours. From this, we can infer that for Jeff, the substitution effect is greater than the income effect - option C.
Explanation:
The substitution effect is stronger than the income effect in a case whereby the supply of labor increases as the wage rate increases .
On the other hand, when the supply of labor decreases as the wage rate increases, then the income effect is stronger than the substitution effect.
With regards to the scenario given in the question - with an increase in the wage rate, Jeff has decided to work more hours.
Thus, in the given case, it can be inferred that for Jeff, the substitution effect is greater than the income effect.
Therefore, the correct answer is option C.
Answer:
Foreign outsourcing
Explanation:
Foreign outsourcing is a business practice by which a company based in a certain region or country hires another company outside of the region to produce good and perform services that could have been done within. We could also define it as the importation of products or service that could have produced domestically. Most times foreign outsourcing are done to reduce cost of production or service delivery, but one common risk that could be experienced in foreign outsourcing is the loss of control over the goods produced or the services provided.
Therefore, the strategy by Quistor Inc. illustrates foreign outsourcing.
