Answer:
The correct answer is letter "B": A decrease in a deferred tax asset.
Explanation:
A Deferred Tax Asset is an asset on a balance sheet of a business that can be used to lower taxable income. It is the opposite of deferred tax liability that reflects something that will increase income taxes. Both are listed under current assets on the Balance Sheet.
The deferred tax asset will be generated when recorded income taxes owed are higher than the income taxes paid to the Government.
Thus, <em>a decrease in deferred tax is recorded when a company has collected revenue in advance for a good not delivered or a service not rendered yet.</em>
Answer
1, 2018. Accounts payable Br. 23,100 Land Br. 90,000 Accounts receivables 52,000 Notes payable 100,900 Building 54,800
Explanation:
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>
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4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>
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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
The use of jargon. ...
Emotional barriers and taboos. ...
Lack of attention, interest, distractions, or irrelevance to the receiver. ...
Differences in perception and viewpoint.
Physical disabilities such as hearing problems or speech difficulties.
Answer:
False
Explanation:
Agency refers to a kind of agreement wherein the first party, known as the Principal confers a right on the second party, called an agent, to act on his behalf or as per his directions.
It establishes a fiduciary responsibility i.e that of a legal trust between the parties.
Once the agency agreement is terminated, the relationship between a principal and an agent ceases. Thereafter, the agent cannot continue representing the principal and if he does, he shall be held personally liable for such acts which result into any damage or loss to a third party.
