Answer:
Expenses will be understated, hence, Net Income will be overstated.
Rent prepaid will be overstated, hence, current assets will be overstated.
Explanation:
Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.
In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.
The answer to this is 0.08 hope that this helped
It is known as competitive advantage.
Competitive advantage refers to factors that allow a company to produce goods or services more efficiently or at a lower cost than competitors. These components allow the manufacturing unit to generate more sales or profits than its competitors in the market.
It is the favorable position that a firm seeks in order to outperform its competition.
Competitive advantages are classified into two types: comparative advantages and differentiated advantages.
A company's comparative advantage is its ability to manufacture something more effectively than a rival, resulting in larger profit margins.
A differential advantage occurs when a company's goods are seen to be both distinctive and of greater quality than those of a rival.
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