Answer:
He can choose to defer the recognition of the income until next year, only if the income is not recognized for financial accounting purposes.
According to business strategy, the <u>Profitability</u> ratios measure how much-operating income an organization can generate relative to assets, owners' equity, and sales.
<h3>What are Profitability ratios?</h3>
Profitability ratios s a form of financial method or procedure in which firms assess or evaluate the ability to generate income or revenue based on the capacity and resources.
<h3>Different types or methods of Profitability ratios:</h3>
- Gross Profit Ratio
- Operating Ratio
- Operating Profit Ratio
- Net Profit Ratio
- Return on Investment
Hence, in this case, it is concluded that the correct answer is "<u>Profitability ratio."</u>
Learn more about the Profitability ratio here: brainly.com/question/25253887
Answer:
C
Explanation:
The economists would disagree with this policy because the opportunity cost of zero pollution is much higher than its benefit. The industries involved may have to stop their industrial activities out-rightly or temporarily until they come up with other ways of production which may bring unemployment, reduction in tax paid to government among others.
Answer:
$26,000
Explanation:
The calculation of Net increase or decrease in income on replacement is shown below:-
Net savings in Variable cost for 4 years = Variable manufacturing costs × Life
= $19,800 × 4
= $79,200
Net Investment to be made in New machine = Initial investment of new machine - Traded in value of old machine
= $128,000 - $22,800
= $105,200
Net financial disadvantage of replacement = Net savings in Variable cost for 4 years - Net Investment to be made in New machine
= $79,200 - $105,200
= $26,000
So, for computing the net financial disadvantage of replacement we simply applied the above formula.
