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3 years ago

Which of the following is the advantage of cash-based accounting?

Business

2 answers:

Katena32 [7]3 years ago

5 0

Answer:

The correct answer to the following question will be Option A (it is more accurate than accrual accounting).

Explanation:

<u>Cash-based accounting</u>

Cash accounting is a form of accounting where expenditure payments are reported during the time they are received, and expenditures are documented in the period they are paid in. In certain words, when cash is obtained and charged, the profits and expenditures are reported, respectively.
There are definite advantages for relying on the cash accounting basis for tax purposes. This accounting guarantees that taxes on money not yet collected are not paid; this increases profitability and ensures that funding is available through tax expenditures.

Therefore, Option A defines the Cash-base accounting benefit.

Alexxandr [17]3 years ago

4 0

A) it is more accurate than accrual accounting.

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The Chambers Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at

notsponge [240]

Answer:

B) $2,86

Explanation:

Using the high-low method we will use the highest activity level and the lowest activity level to determine the variable and fixed portion of the costs.

Highest activity - Cost $ 14182 Hours - 4200

Lowest activity - Cost $ (8748) Hours - (2300)

Difference - $ 5434 1900

Now we determine the variable portion. 5434/1900 = 2,86

Thus the answer is B.

6 0

3 years ago

All of the following are methods of evaluating the risk of a project except multiple choice the net present value profile a mont

Eduardwww [97]

The answer choice that is NOT a method of evaluating the risk of a project is its B. Profile

<h3>What is Risk Management?</h3>

This refers to the identification of risk in any venture and the evaluation of the response to risk factors.

Hence, we can see that when a person is evaluating the risk of a project, he would have to check the net present value, the coefficient of variation, etc, but the evaluation of the profile is not a method of risk evaluation of the project.

Read more about risk management here:

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6 0

2 years ago

A sudden fall in the market demand in a competitive industry leads to a. A short run market equilibrium price lower than the ori

ratelena [41]

Answer:

The answer is C. Some firms exiting the market

Explanation:

When there is a sudden fall in the market demand in a competitive industry(e.g perfect competition) some firms would making economic losses and it is best if they shut down operation and production. Once these happen, they exit the market.

Option A is incorrect . Same as option B.

Option D is also incorrect

7 0

3 years ago

Michelle, an Italian fashion designer, sells her merchandise by exporting it to the United States, United Kingdom, and Brazil. A

Pepsi [2]

Answer:

The answer is C. international trade

Explanation:

International trade is the exchange of goods and services between countries.

7 0

3 years ago

If fixed costs are $400,000 and the unit contribution margin is $20, how many units must be sold in order to realize an operatin

Mariulka [41]

Answer:

32,500 units must be sold to realize an operating income of $250,000.

Explanation:

a) Calculations:

Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.

To break-even, the company needs to sell the following quantity,

Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.

To achieve a target profit, the company needs to sell the following quantity,

Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.

b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs. From the analysis, a company can also determine the units to sell in order to realize a target profit. This helps a lot in decision making.

8 0

3 years ago