1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jarptica [38.1K]
3 years ago
7

Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year,

Scott sold the business for $4,100,000. His accounting profits is:
Business
1 answer:
Veseljchak [2.6K]3 years ago
7 0

Answer:

$100,000

Explanation:

Accounting profit = Revenue - Explicit Cost

$4,100,000 - $4,000,000 = $100,000

Accounting profit does not taken into account opportunity cost or implicit cost. The implicit cost here is the amount of interest forgone by starting the store

This interest rate would have been earned if he left the money in his account

You might be interested in
Which account option is designed to house money for easy access, either by check or by debit card?
alexandr1967 [171]

Answer:

You are right it is checking

4 0
3 years ago
Read 2 more answers
Required information Exercise 6-9A Record transactions using a perpetual system (LO6-5) Skip to question [The following informat
Korolek [52]

Answer:

Littleton Books

Journal Entries:

May 2 Debit Inventory $3,300

          Credit Accounts Payable (Readers Wholesale) $3,300

To record the purchase of books on account, terms, 1/10, n/30.

May 3 Debit Freight-in $200

          Credit Cash Account $200

To record the payment of freight costs for books purchased from Readers.

May 5 Debit Accounts Payable (Readers Wholesale) $400

          Credit Inventory $400

To record the return of books.

May 10 Debit Accounts Payable (Readers Wholesale) $2,900

            Credit Cash Discount Received $29

            Credit Cash Account $2,871

To record the settlement of account.

May 30 Debit Accounts Receivable $4,000

            Credit Sales Revenue $4,000

To record the sale of books on account.

May 30 Debit Cost of goods sold $2,900

            Credit Inventory $2,900

To record the cost of goods sold.

Explanation:

The journal entries in Littleton Books' accounting records show the accounts to be debited and credited as they occur on a daily basis.

6 0
3 years ago
Imagine that you are a member of the band and you want to purchase some items from a music supply store. Use what you've learned
FinnZ [79.3K]

This is a question only you and someone who is taking that course can answer. I would need more information.

7 0
3 years ago
Read 2 more answers
A woman purchased a new refrigerator from an appliance store. Two weeks later, she sold the refrigerator to her son, who had jus
Phantasy [73]

Answer: The court shouldn't grant either of them motion, due to the fact that the jury must determine whether the damage was due to the technician's installation of the improper cooling panel.

Explanation:

Based on the information given and assuming that both parties have moved for a directed verdict, then the court should not grant either of the motions.

The court shouldn't grant either of them motion, due to the fact that the jury must determine whether the damage was due to the technician's installation of the improper cooling panel.

6 0
3 years ago
Markets provide the efficient amount of a good or service when externalities are present. monopoly exists. public goods are pres
torisob [31]
Markets provide the efficient amount of a good or service when <span>externalities and public goods are absent.
Externalities in this case refers to an unpredictable occurence such as natural disasters, and public goods refers to the goods that given from the government for lower or higher than the market price</span>
4 0
3 years ago
Other questions:
  • . A company is authorized to issue 750,000 shares of $5 par value common stock. Prepare journal entries to record the following
    8·1 answer
  • The Hudson Corporation has 7,600 obsolete units of a product that are carried in inventory at a manufacturing cost of $152,000.
    15·1 answer
  • Directional Lock Question #2: How is liquidity related to return?*
    8·1 answer
  • Citicorp buys a call option on Euro (contract size is Euro 2,000,000) at a premium of $0.02 per Euro. If the exercise price is $
    5·1 answer
  • Why do managers of financial institutions care so much about the activities of the Central <br>Bank​
    8·1 answer
  • Describe how a job interview is affected by your clothing and body language
    8·1 answer
  • The Harris-Todaro model has all of the following features EXCEPT A. migration is driven by actual rural-urban earnings different
    9·1 answer
  • When should an Accountant user use the Write Off tool in QuickBooks Online?
    8·1 answer
  • Companies may use a special bank account solely for the purpose of paying employees, by depositing an amount equal to the total
    13·1 answer
  • Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $2
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!