Answer:
Sales Revenue – Cost of Goods Sold = gross profit
Explanation:
A merchandising business is one that is involved in selling goods to customers. The firm may purchase or produce the goods it sells. Merchandising firms report an expense named the cost of goods sold COGS. This cost represents the total cost of all goods sold to customers during a period.
Costs of goods sold include the direct cost associated with the merchandise. Calculation of COGS is by adding net purchases to the opening stock then subtracting ending stock. The cost of goods sold is used in calculating gross profit. Service firms do not report this cost as they do not sell goods.
The idea that all successful entrepreneurs persevere through setbacks and failures is the key characteristic that fuels an entrepreneurial discoveries which is illustrated by the idea that many entrepreneurs consider that failure only occurs when one doesn’t try.
<h3>Who is an entrepreneur?</h3>
This means the person that creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship.
The characteristics of successful entrepreneurs are:
- passion for the business
- product/customer focus
- tenacity despite failure
- execution of idea.
Therefore, the idea that all successful entrepreneurs persevere through setbacks and failures is the key characteristic that fuels an entrepreneurial discoveries
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Answer:
E) the risks associated with the use of the funds required by the project.
Explanation:
Discount rate for an individual project should be based on the riskiness of the project.
Using the company's overall weighted average cost of capital might lead to misleading estimates because the project might be more or less risky than the overall firm
Answer:
You can not check the property beforehand for damages, which is a risk.
Explanation:
A foreclosure property is that property which is being sold off by a lender in order to payoff default.
There are a number of risks involved in buying such property. The process of buying is lengthy and complicated.
Buyers are not allowed to check the property before auction. Often these properties are damaged because the owners can not afford to manage. Or the angry owners may damage the property purposely in order to punish the lenders.
Answer:
a. Historical Cost Principle = All the assets are recorded at their historical cost except the short term investments.
b. Full Disclosure Principle = All the details of the financial conditions of the company shall be stated properly.
c. Expense recognition principle = All expenses shall be recorded properly, and the cost of intangible assets shall be charged as expense during its useful life as amortisation expense.
d. Industry practice and fair value principle = As stated in (a) also, all short term investments shall be valued at fair value, as crops are their stock it is an industry practice in agricultural sector to record crops at fair value.
e. Economic Entity assumption = The owner of a business and that his business are two different legal persons, as income of business is computed and assessed separately and that the income of the owner is assessed separately.
f. Full Disclosure Principle = As there is a time gap in closing the actual financial year on 31 December and preparing the balance sheet, several transactions which are considered to be of important aspect for the people concerned are disclosed in the balance sheet as events after the balance sheet but before the reporting date.
g. Revenue Recognition principle = Revenue shall only be recorded when the entire risk is transferred to the buyer, and that only the payments are left to be received.
h. Full Disclosure Principle = Again all the financial statements shall disclose all the material facts as for investors interests the full disclosure principle is followed.
