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WINSTONCH [101]
2 years ago
12

The difference between accounting profit and economic profit is.

Business
1 answer:
Vadim26 [7]2 years ago
7 0

Answer:

Accounting profit - Your actual profit

Economic profit - Profit, but opportunity cost factored out

Explanation:

Accounting profit is how much you made (Revenue - Explicit Cost.

Economic profit includes implicit costs, or opportunity cost. If you could have made $100,000 at a different job, you subtract that. If Accounting-Economic profit is 0 or higher, you should stay in business.

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A property is being appraised using the gross rent multiplier. A comparable property that rents for $150 per month recently sold
Helga [31]

Answer:

The sales price of the appraised property is $26,400

Explanation:

The sales price of of the appraised property can be expressed as;

SA=(A/C)×SC

where;

SA=selling price of the appraised property

A=appraised rent per month

C=comparable rent per month

SC=selling price of the comparable property

In our case;

SA=unknown

A=$165 per month

C=$150 per month

SC=$24,000

replacing;

SA=(165/150)×24,000=$26,400

The sales price of the appraised property is $26,400

3 0
3 years ago
The top management of Wisniewski Automobile Parts Inc. has decided that the company's objective for the next two years will be t
Mkey [24]

Answer:

Strategic planning

Explanation:

Strategic planning is defined as the process by which a business outlines direction and strategy. It also involves decision on how the business will allocate it's resources to achieve its strategic goals.

Strategic plan involves formulation of mission, vision, and plan of action that will make the business achieve set goals.

In this scenario top management of Wisniewski Automobile Parts Inc. has decided that the company's objective for the next two years will be to expand the overall business internationally. This is the strategic plan of the business for the next two years

3 0
3 years ago
Arnell Industries has $35 million in permanent debt outstanding. The firm will pay interest only on this debt. Arnell’s marginal
Bas_tet [7]

Answer:

a) $0.5145 million

b) $7.35 million

Explanation:

Given:

Permanent debt outstanding = $35,000,000

Expected marginal tax rate = 21%

a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.

To find annual interes tax shield use the formula below:

Annual interest tax​ shield =Total par value of Debt × interest rate × tax rate

= $35,000,000 × 7% × 21%

= $35,000,000 × 0.07 × 0.21

= $514,500

Annual interest tax​ shield = $0.5145 million

b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?

Use the formula:

Present value of the interest tax​ shield = Annual interest tax​ shield /loan interest rate

= $514,500 / 7%

= $7,350,000

present value of the interest tax​ shield = $7.35 million

3 0
3 years ago
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
11Alexandr11 [23.1K]

Answer:

The correct answer is Option a. The adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts.

Explanation:

The trial balance is a summary of all the account balances for an organization, usually spooled at the end of the year. The possibility exist that transaction that occurred during the year are not captured, accurately or properly recorded in the books. When the company's financial statements are reviewed at the end of the year, adjustments may be made to the unadjusted trial balance to include transactions previously not recorded, accurately or properly captured in the books of accounts.

The inclusion of these adjustments results in the adjusted trial balance.

Hence Option a which states that the adjusted trial balance includes the postings of the adjustments for the period in the balance of the accounts is the right option.

5 0
3 years ago
Read 2 more answers
Demand for food doesn't change in response to a change in price. Why? 
Butoxors [25]
The price of elasticity of the product maybe considered inelastic since there is little to no responsiveness to the change in price of the product. A factor or reason can be that it is a necessity so persons still have to buy the product no matter the change in price.
7 0
3 years ago
Read 2 more answers
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