Why do profits based on an accrual accounting system differ from profits based on a cash-based system?

What will be an ideal response?

1.Sales reported in an income statement include both cash sales and credit sales.2.Some inventory purchases are financed by credit3.The depreciation expense shown in the income statement is a noncash expense.4.Frequently, not all of the income tax shown in the income statement is paid in the period reported.

Business

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Since the number of shares changes under both a stock dividend and a stock split, any ratio based on the number of shares must be restated

Indicate whether the statement is true or false

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Commercial paper consists of secured loans that are sold to the public

Indicate whether the statement is true or false

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In its initial year of operation, Montoya Manufacturing started and completed 4,000 identical widgets and had 1,000 widgets that were 40% complete in work-in-process at the end of the year. Total production costs for the year were $55,000. What is the cost per equivalent unit?

A) $12.50 B) $11.00 C) $11.96 D) $13.75

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Which macroenvironmental factor influences what, why, how, where, and when consumers buy?

A. company B. corporate partners C. competencies D. competition E. culture

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