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3 years ago

Why two types of revenues are important when starting a business?

Business

1 answer:

Sati [7]3 years ago

6 0

Explanation:

Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.

Sales Revenue=Sales Price×Number of Units Sold

Revenue, often referred to as sales, is the income received from normal business operations and other business activities.

1).operating income is income derived from normal business operations, such as sales of goods or services.

2).non-operating income is infrequent or nonrecurring income derived from secondary sources

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Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What effect does this transacti

Archy [21]

Answer:

(c). Net increase in assets of $35,000 and a net increase in liabilities of $35,000

Explanation:

Accrual basis of accounting attempts to record transactions as and when they arise and not on the basis of when money is actually received or paid. Once a liability is certain, such a liability is provided for immediately.

The journal entry for purchase of Land partly by cash and partly for issuing a notes payable would be:

Land Dr. $55,000

To Cash $20,000

To Notes Payable $35,000

(Being land purchased by payment of $20,000 in cash and a note being issued against the balance amount)

Land and cash are assets whereas Notes Payable is a liability.

So, the effect of the above transaction would be:

Net increase of $35,000 ( $ 55,000 - $ 20,000) as debit in fixed assets account increases their balance whereas cash being a real account, the rule being debit what comes in, credit what goes out. So credit in cash account would reduce the cash balance by $ 20,000.

Notes Payable account which is to be paid in future is a liability which shall increase the liabilities by $ 35,000.

So, the correct answer is (c), Net increase in assets of $35,000 and a net increase in liabilities of $35,000.

5 0

3 years ago

During soil testing, soil samples are obtained from

klemol [59]

Answer:

The answer is C.

Explanation:

Soil testing refers to the analysis of soil samples, in order to determine a number of things, which include nutrient availability, mineral composition, the organic matter present in the soil, etc. It is also a very important diagnostic tool for ascertaining the nutrient requirements of plants.

When carrying out soil testing on a particular site, samples are taken from different locations from the site, this includes different depths as well. This is done in order to give a general picture of what the soil on the site looks like.

3 0

3 years ago

Using the Exxon data as an example, what would be the market capitalization of Penny's Pickles if each share is selling for $175

ElenaW [278]

Answer:$1,753,500

Explanation:I multiplied the amount of stacks availible and how much the stocks cost.

5 0

3 years ago

Read 2 more answers

Free Cash Flow Catering Corp. reported free cash flows for 2008 of $8.19 million and investment in operating capital of $2.19 mi

DiKsa [7]

Answer:

EBIT is $11.67 million

Explanation:

For computing the EBIT, first we have to calculate the operating cash flow which is shown below:

FCF = Operating cash flow – Investment in operating capital

$8.19 million = Operating cash flow - $2.19 million

So, the Operating cash flow = $10.38 million

Now we apply the operating cash flow which is shown below:

The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

$10.38 million = EBIT + $0.9 million -2.19 million

$10.38 million = EBIT - $1.29 million

So, EBIT is $11.67 million

8 0

3 years ago

diversification reduces the risk of a portfolio because the prices of different securities do not move exactly together. a.true

Elis [28]

False. Diversification cannot reduce the risk of a portfolio because the prices of different securities do not move exactly together.

A diversified portfolio is a collection of various investments that work together to lower the overall risk profile of the investor. Owning stocks from a variety of various sectors, nations, and risk profiles as well as other investments like bonds, commodities, and real estate are examples of diversification.

Although it can help you control risk by distributing your investment funds among several asset classes and types of securities, diversification cannot completely remove risk or ensure a profit. The chance of losing money still exists.

For more questions like Diversification click the link below:

brainly.com/question/14091176

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5 0

1 year ago