What is the importance of accounting for small businesses?
What will be an ideal response?
Accounting is quite important in achieving success in any business, especially a small one. In fact, accounting is so tied to one's financial well-being that, without it, one would not know what the bottom line is-or even whether it is a positive or negative amount. Therefore, one's accounting records must accurately reflect the changes occurring in one's firm's assets, liabilities, income, expenses, and equity. The continued operation of one's business also depends on maintaining the proper balance among its investments, revenues, expenses, and profit. Because profit margins are so critical to the success of a business, any decline in them should trigger an immediate search for the cause.
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Target costing is a useful pricing tool because it allows the company to critically analyze the potential for success of a product before committing resources to its production
Indicate whether the statement is true or false
Members of the federal judiciary are
a. elected to office for life by the senates of the states where the courts are located. b. appointed by the president and confirmed by majority vote of the U.S. Senate. c. designated in a binding recommendation by the senior senator of the state where the court is located. d. required to retire at age 70.
Smalltown has two family-owned hardware stores that have been in business for years. Major Hardware decides that Smalltown would be a good place to build one of its superstores. Major opens, advertising unbelievably low prices; in fact, at below cost
Because Major owns stores nationally, it is able to keep prices extremely low until both of the family-owned stores have to go out of business because they cannot compete. After Major is the only hardware store in town, it raises its prices enough to make up for its former losses and to make some additional profit. Discuss this behavior in relation to antitrust law.
Exchanges are not directly tied to ERP systems used by large firms.
Answer the following statement true (T) or false (F)