The accrual-based income statement superior to a cash-based income statements in measuring profitability because It reports the expenses incurred in generating the revenues regardless of when the cash was paid.
What distinguishes the accrual basis of accounting from the cash basis of accounting?
When money is received or spent, it is recorded as revenue using the cash foundation of accounting. When using the accrual basis of accounting, revenues are recorded as they are earned and expenses as they are incurred.
What is an income statement with an accrual basis?
Accounting on an accrual system records revenue and corresponding costs as they are incurred, rather than when money is exchanged. Accordingly, businesses report revenue when it is earned rather than when it is received.
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Answer:
8 hours is required for both companies to cost the same
Explanation:
given data
company A materials and equipment = $220
company A labor = $45 per hour
company B materials and equipment = $300
company B labor = $35 per hour
to find out
how many hours of labor required
solution
total cost of company A = 220 + 45 h
total cost of company B = 300 + 35 h
so we can say
total cost of company A = total cost of company B
220 + 45 h = 300 + 35 h
h = 8
so 8 hours is required for both companies to cost the same
As she adjust to this event, SHE WILL CONSUME LESS PEANUT BUTTER AND MORE ICE CREAM.
Utility maximization is an economic concept, which consumers use when making purchases. Consumers usually try to get the greatest possible value from the least amount of money. Thus, the theory of utility is a theory of consumer behaviour, which explain how consumers allocate their incomes.
Answer:
The correct answer is option B.
Explanation:
In a market system, the suppliers and employees are generally shielded from risk. The stockholders and owners of the business are most exposed to risk.
The employees will get their salaries which are fixed and the suppliers will get payments for their supplies. The profits of business owners and stockholders may fluctuate so they are exposed to risk.
The employees and suppliers do not get to share profits but they are shielded from risks.
