Answer:
The answer is: full disclosure principle
Explanation:
Full disclosure principle in accounting refers to the requirement that businesses are supposed to provide all material information pertaining to their operations to the stakeholders of the business so as to facilitate better decision-making frameworks when evaluating the business.
The going concern principle is based on the assumption that the business will not cease operating in the foreseeable future. The matching principle requires that the expenses incurred in carrying out an economic activity are recorded in the same period as the revenues earned from that activity. The historical cost principle requires assets or liabilities to be recorded at their acquisition value.
His firm is using a sales orientation
Sales orientation refers to a business technique that rely on it's selling and persuasion technique as their main source of income.
Company that use sales orientation usually sold a type of product that is high in price and not commonly bought by the costumers in large quantity.
The weighted transferring common forecasting version makes use of a weighting scheme to alter the results of person facts points. that is its primary gain over the easy transferring common version. the weighted transferring common forecasting version makes use of a weighting scheme to alter the results of person facts points. that is its primary gain over the easy transferring common version is true.
Forecasts produced the usage of exponential smoothing strategies are weighted averages of past observations, with the weights decaying exponentially due to the fact the observations get older. In one-of-a-kind words, the more ultra-modern the declaration the higher the associated weight.
Quantitative forecasts lease one or more mathematical models that rely upon historical information and/or casual variables to forecast demand. Qualitative forecasts include such factors due to the fact the choice maker's intuition, emotions, private experiences, and rate system.
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Based on the total cost, total revenue, and pair of shoes, the profit level at every level of running shoe production are:
- Pair 1 - $23
- Pair 2 - $51
- Par 3 -$80
- Pair 4 - $109
- Pair 5 - $137
<h3>What are the profits at each level?</h3>
The profit can be found as:
= Total revenue - Total cost
At first level:
= Total revenue - total cost
= 30 - 7
= $23
At pair 2:
= Total revenue - total cost
= 60 - 9
= $51
At pair 3:
= Total revenue - total cost
= 90 - 10
= $80
At pair 4:
= Total revenue - total cost
= 120 - 11
= $109
At pair 5:
= Total revenue - total cost
= 150 - 13
= $137
The total profit is increasing because the total revenue is increasing significantly yet the total cost is only increasing marginally.
In conclusion, the profit is increasing more because cost is increasing less.
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These sums are included in the period's ending balance, retained profits, dividends, and net income in the statement of stockholders' equity.
Stockholder equity, often known as shareholders' equity or owners' equity, is the amount of assets left over for shareholders to use after all liabilities have been settled. It is determined by subtracting a company's total assets from its total liabilities, or alternatively by adding its share capital and retained earnings and deducting its treasury shares. Among the possible components of shareholders' equity are common stock, paid-in capital, retained earnings, and treasury stock.
Stockholders' equity can conceptually be used to assess the amount of money a company has kept on hand. If this number is negative, a business may be on the verge of bankruptcy, especially if there is also a substantial debt obligation.
There are two main sources of Stockholder equity, which is also known as the company's book value. The money that was initially and subsequently invested in the business through share offerings is the first source. The company's retained profits (RE), which are accumulated over time as a result of its operations, make up the second source. Retained earnings typically make up the greatest portion, especially when dealing with businesses that have been around for a while.
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