Cost-benefit principle would state that you would only take an action if the benefit outweighs the cost.
For example: It may cost me $5 to drive to work, but I make $50 for showing up, I would go because the benefit I get outweighs the cost and I am better off going than staying at home.
Answer:
correct answer is C. Shrinkage
Explanation:
Shrinkage is industry term for an inventory and the cash losses
because shrinkage is difference between the record inventory and actual inventory so that shrinkage is the loss of an inventory and some factor that is attribute like vendor is fraud , employee theft or cashier errors or could be administrative error etc
so here correct option is C. Shrinkage
Answer:
Explanation:
The journal entry to record the given transaction is shown below:
Cash A/c Dr XXXXX
To Common stock A/c XXXXX
(Being the issuance of the common stock is recorded)
The accounting equation is
Total Assets = Total liabilities + Stockholder equity
Cash Increased = No effect + Increased
Therefore, the cash account and the common stock is increased.
Answer:
It will be reported as accrued expenses (c)
Explanation:
Accrued expenses represents amount owed for either serviced that has been enjoyed or goods that have been delivered but yet to be paid for.
Income statement is prepared on accrual basis, hence, these expenses will be recognized in the current period and matched with revenues generated.
