I think small stuff makes such a difference for businesses because you have to take risk if you want to be successful and with those little risks the businesses are successful
Answer:
a. $50, $10
Explanation:
The accounting result would be explicit income and expenses:
60 sales and 10 cost of the ingridients = 50 dollar gain
While the economic result will also consider implicit cost. Which is the opportunity cost. This is the amount of revenue that could be generated for the factor in other alternative.
In this case we have a 50 dollar gain less the 40 dollar we coudl have earned doing the other job the economic gain is 10 dollars
Answer:
The correct answer is Option A.
Explanation:
The concept of double entry says for every debit entry, there must be a corresponding credit entry. This is necessary for the journal entries to balance, that is, the total of the debit balance must always equal the credit balance.
The building purchased by BOC is an asset. So there is need to debit that account to recognize the asset. Since there was an outflow of cash to the tune of $50,000, we need to credit cash while the remaining balance being financed by mortgage will be credited to recognize the liability.
Answer:
$45,000
Explanation:
The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and has a net realizable value of $10,000. Its inventory of coffee makers with timers cost $35,000 and has a net realizable value of $35,000.
The amount that should be reported for Daily Grind's inventory is the net realizable values which is $10,000 + $35,000 = $45,000
<u>According to International Financial Reporting Standards, inventory should be valued at lower of cost and net realizable value. </u>
<u>Since the cost value of ''inventory of coffee makers without timers'' is higher than its net realizable value, it cannot be used.</u>
Answer:
$3,561.25
Explanation:
Statement showing computations
Particulars Amount
Cash balance per books 3,492.50
Service Charges (6.25)
Note Collected by Bank 450.00
NSF Check from Customer (375.00)
Adjusted amount of Cash 3,561.25
Therefore, The adjusted amount of Cash that should be reported for May 31 is $3,561.25