Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs, accounting profit consists of revenue minus explicit costs.
Answer:
$174
Explanation:
The computation of the cost of goods sold is shown below:
As we know that
Cost of goods sold = Opening inventory + Purchase - ending inventory
= $142 + $432 - $400
= $174
By adding the purchase of merchandise and deducting the ending inventory from the opening inventory we can get the cost of goods sold and the same is to be applied
Hence, the cost of goods sold is $174
Answer: intermediaries
Explanation: In simple words, channel of distributions refs to the chain of business activities and intermediaries who prof rm the function of transferring the product from the producer to its final customer.
This channel of distribution consists of intermediaries such as agents, brokers , wholesalers and retailers who deals with each other at different levels and earn their margin of profit from the product while transferring it to next stage.
These are important parties to the market as without them producer has to perform all the ruination by himself which can result in delay or unstable supply in the market.
Answer:
b. $400,000
Explanation:
According to the historical cost principle, the land or fixed assets should be reported in the financial statement with the purchase price or historical price.
In the given situation, the land receiving value is $400,000 and its fair market value or FMV is $500,000 and exchange value is $300,000
So, here the land should be recorded at $400,000. Hence, we ignored the fair market value and the exchanged value
Answer:
Deduct the check from the bank Statement balance
Explanation:
In the given scenario when a bank writes a check on September 30 and the beneficiary does not cash the check, it will not be deducted from the company's balance.
So it will not appear on the end of month statement.
When reconciling the company's accounts the check will need to be considered as cash given out already.
The value of the cheque will need to be deducted from the statement balance to show the funds were given out.