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If the lessee and lessor use different interest rates to account for a capital lease then total expenses for the lessee will be different from the lessor's total revenues?
yes
For a firm to operate in the shortrun the total revenue must at least be equal to Why?
A firm would still operate if revenues are below total coots, but not if revenues are below variable costs. The reason is that as long as revenues are above variable costs, the firm will earn a difference to contribute to the fixed costs (fixed costs are costs that a company has to pay in the short-run whether it operates or not). If the firm stops operating in the short-run, it will have to pay for the full fixed costs (e.g., rent, some fixed labour) If revenues are below variable costs, for every unit of production, the company loses the difference and does not contribute to the fixed costs. It is more economical to shutdown in the short-run.
Do expenses incurred in operating a business increase the owners' equity?
Operating expenses considered in a vacuum by themselves would tend to decrease owner's equity. Indirectly, however, they are part of how owner's equity is increased, in that they are necessary in order to generate revenues.Broadly speaking, if the revenues earned for a period are greater than the operating expenses incurred, the net result is net income for the period, which increases owners' equity for the period. But if the total revenues for a period are less than the expenses incurred in the period, the result is a net loss, which would decrease owners' equity.
WHAT IS THE Tax implication on a withdrawal made on a life policy?
If the amount of the withdrawal is less than the total of all premium pauments, then there is no tax implication. If the withdrawal exceeds the total premiums , then ordinary income tax rules apply.
How to calculate total capital for a business or investment opportunity?
To calculate the total capital for a business or investment opportunity, add up all the funds invested in the business, including equity and debt. This includes money from owners, investors, loans, and any other sources of capital. Total capital is important for determining the financial health and stability of the business.
When total revenues exceed total cost a business has registered?
A loss.
What conditions exist for a company to break even?
When total costs and total revenues are equal, the business organization is said to be breaking even.
Are sales and revenues the same?
No, sales and revenues are not the same, though they are related concepts. Sales typically refer to the total amount of goods or services sold by a company, often measured in units or dollars. Revenues, on the other hand, encompass the total income generated from all business activities, including sales, investments, and other sources. Therefore, while sales contribute to revenues, revenues can include additional income streams beyond just sales.
When smithston enterprises had total revenues of 35 million while it?
When smithston enterprises had total revenues of 35 million while it?
How do you calculate government's operating surplus or deficit?
To calculate a government's operating surplus or deficit, subtract total government expenditures from total government revenues. If revenues exceed expenditures, the result is an operating surplus; if expenditures exceed revenues, it results in a deficit. This calculation typically includes only current operating revenues and expenses, excluding capital expenditures and revenues. The formula can be expressed as: Operating Surplus/Deficit = Total Revenues - Total Expenditures.
Which financial statement will determine if a business is profitable?
The income statement, also known as the profit and loss statement, determines if a business is profitable. It summarizes revenues, expenses, and profits or losses over a specific period, allowing stakeholders to assess the company's financial performance. By comparing total revenues to total expenses, the income statement provides a clear picture of profitability.
What do you call when total revenues equal total costs?
Breakeven.
What is the formula for accounting profits?
The formula for accounting profits is: Accounting Profit = Total Revenues - Total Explicit Costs Total revenues include all income generated from sales, while total explicit costs encompass all direct expenses related to the business, such as wages, rent, and materials. This calculation does not account for implicit costs, which are opportunity costs associated with the resources used.
What does P and L consist of?
The Profit and Loss statement (P&L) mainly consists of revenues, expenses, and resulting net income or loss for a specific period. Revenues represent the income generated from selling goods or services, while expenses include costs incurred to generate that revenue. The net income is the difference between total revenues and total expenses, indicating the profitability of the business for that period.
What revenues did Service Corporation International have in 1996?
Service Corporation International had total revenues of $1.6 billion in 1996
When total revenues exceed total expenses what is the difference called?
Net income
Mofro's Computer Repair Shop started the year with total assets of 270000 and total liabilities of 180000. During the year the business recorded 450000 in computer repair revenues 270000 in expenses a?
To find Mofro's equity at the end of the year, we start with the initial equity, which is total assets minus total liabilities: ( 270,000 - 180,000 = 90,000 ). During the year, the business earned ( 450,000 ) in revenues and incurred ( 270,000 ) in expenses, resulting in a net income of ( 450,000 - 270,000 = 180,000 ). Therefore, the ending equity is ( 90,000 + 180,000 = 270,000 ).
