Answer:
The answers are,
For A. It's the revenue recognition principle in which revenue is recognised when it is earned, now when the cash is realized.
For B. Its the matching concept in which all expenses related with earnings are debited against it to find the profit or loss.
For C. It's full disclosure principle in which all events in material nature has to be disclosed. We can say that going concern effects this as well, as if any event affect the continuity of an entity, it has to be disclosed as well.
For D. It's the historical cost principle in which you account the assets and expenses at the price you paid for them. When the value increases over time, you can reevaluate and adjust it.
Explanation:
Answer:
The answer is (B) typically follows the same path as the company’s organization chart.
Explanation:
Formal communication in a business refers to a type of communication that is intended to follow a certain agenda or written or expressed verbally in a formal tone. Because of its form and adherence to standards, it usually requires the approval of multiple parties within the organization, and thus follows the same lines as a company’s organization chart.
Answer:
The answer is: $90,000
Explanation:
We must first determine the cost of goods sold:
- COGS = variable costs = 70% x 1,000,000
I will assume all fixed costs are operating expenses.
Then we elaborate a simple income statement:
Sales $1,000,000
<u>COGS ($700,000) </u>
Gross profit $300,000
<u>Operating expenses ($210,000) </u>
Operating profit $90,000
Answer:
The correct answer to this question is A) it reduces the chances that Henry food health system might make any unethical purchasing decisions.
Explanation:
Ethics can be defined as the morals or principles that a person o group of person or a company believes in. Henry food health system doesn't want its doctors to accept gifts, free lunches or any kind of such perks from the pharmaceutical representative because Henry food health system thinks by providing such gifts and perks, these representatives might influence their doctors decision regarding the purchase and it might lead to doctors making an unethical decision.
Answer:
D
Explanation:
Direct finance is when a company or individual borrows money directly from the financial market without the aid of a financial intermediary.
Examples include :
- issuing bonds
- issuing shares
Indirect finance is when a company or individual borrows money through a financial intermediary. for example, borrowing from a bank
