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The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What else can I help you with?
What is the effect on wrong treated revenue expenditure as capital expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What is the effect of contribution unrecognised provident fund in pgbp?
Under the PGBP the amount will not be allowed as business expenditure hence will be added back. Thus the amount will be treated as Income and taxable.
What percentage of the body's energy expenditure is accounted for by the thermic effect of food?
Approximately 10 of the body's energy expenditure is accounted for by the thermic effect of food.
How is drawings treated in the balance sheet?
Share Capital is the amount invested by the owners of business into the business.Drawings is the amount withdrawn by the owners of business.So it is not surprise to show the drawings from deduction from the share capital because net effect is the reduction of the share capital of the owners of the business.
What is the effect of high dependency ratio?
(A)inadequate manpower in the economy(b)low level of production(c)low per capital income(d)increase in government expenditure
What is the smallest component of total energy expenditure?
Thermogenic effect
Can marginal revenue ever be negative?
no,marginal revenue cannot be ever negative.this condition is only applies when price effect is on the revenue is greater than output effect
How the consequence of wrong treatment of capital and revenue expenditures might adversely effect the financial reporting?
Non recognition of revenue in the relevant month will ü Lead towards inconsistent application of matching principle ü understate monthly profit Affect profitability ratios
How do injections and withdrawals effect economic activity?
Injections include Export revenue, Investment and Government expenditure. Withdrawals include Saving, Tax, Import expenditure. All of it affects the component of Aggregate Demand hence affects the economic activity. For e.g. High savings would mean low consumption. This would cause some firms to make losses and leave the industry etc.
What are the advantages of discretionary costs?
Discretionary cost is an expenditure that eliminated if needed based on judgement. This type of expenditure would have little or no effect on profit which is an advantage to the company.
What will a decrease a revenue and a increase liability?
I can think of nothing that will do that in one transaction. Revenue generally does not effect your liabilities. Revenue is an Owners Equity account and most transactions in revenue effect that, not liabilities. (there is one exception and it is explained later on.)Expenses decrease revenue, which in turn decreases retained earnings which effects owners equity.Dividends Paid decrease retained earnings, which in turns also effects owners equity.The only time any "revenue" has an effect on liabilities is if it is an "unearned" revenue. An unearned revenue is a liability, however, it "increases" your liabilities and increases your assets at the same time. Once the unearned revenue is "earned" it then increases your "revenue" and you decrease your liability.
What effect would inflation have on a company's cost of capital?
What effect would inflation have on a company's cost of capital
