This is a territorial restriction.
It even says in the text - territorial restriction refers to when a certain company forbids another company to sell its products in a certain location, because it will interfere with the first company's profits. The same thing happened here, because they don't want any competition on the market.
Answer:
Cowboy Law Firm
Income Statement
Service revenue $7,600
<u>Expenses:</u>
Salaries expense $1,350
Utilities expense $1,000
Total expenses <u>$2,350</u>
Net income <u>$5,250</u>
Answer:
Revenues are closed out to Equity (Retained Earnings) for Corporate.
Explanation:
Actually, for both Sole Proprietor and Corporate, the account that is closed out to Capital or Equity is the difference between the Revenue and the Expenses for the accounting period. This is more specifically referred to as Net Income. This is the bottom-line profit, which is available for distribution to the owners of the entity in the form of capital withdrawals for Sole Proprietorships and dividends for Corporate entities.
Answer:
The solution to the given question is defined in the attached file please find it.
Explanation:
Business used mass production to decrease prices and increase profits because since there was many of one product the prices had to decrease so people could afford the products and if more people buy the products then the businesses will gain more profits from it ( from mass production) .
