Which two broad account categories are used to determine net income? Define each category and list two examples of each type
Net income is determined by subtracting expenses from revenues. Revenues are defined as increases in stockholders' equity resulting from selling goods, rendering services, or performing other business activities. Examples are fees for designing a website or sales made by a hobby shop. Expenses are decreases in stockholders' equity resulting from the cost of goods and services used up in the course of earning revenues. Examples include rent, insurance, and advertising.
You might also like to view...
A(n) ______________________________ system would eliminate documents and forms as the medium for conducting business
Fill in the blank(s) with correct word
The ____________________ is a circle divided into sections representing the component parts of a whole.
Fill in the blank(s) with the appropriate word(s).
Which of the following organisms are ultimately dependent on the sun as a source of energy?
A. A night-blooming flower that is pollinated by night-flying bats. B. A cave fish that feeds on plant debris. C. An underground earthworm that avoids the sun. D. All of the choices ARE ultimately dependent on the sun. E. All of the choices are NOT ultimately dependent on the sun.
Advertising "puffery" is a term for a(n)________
A) straightforward promotional message B) claim of superiority that cannot be proven or disproven C) emotional appeal to customers D) subliminal appeal to customers E) value-added promotion